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2013 (4) TMI 727 - AT - Service TaxBusiness Exhibition Service - service performed abroad - whether the tax is attracted on business exhibition services performed abroad? - Held that - the business exhibition service falling under sub-clause (zzo) would be covered under Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 attracts only if it is performed in India. Further, where such taxable service is partly performed in India, it shall be deemed to be performed in India and the value of such taxable service shall be deemed to be performed in India and the value of such taxable service shall be determined under Section 67 of the Act and the Rules made thereunder. The Business Exhibition Service is entirely performed outside India, and not partly performed in India, therefore it would not be covered under taxable service - demand set aside - appeal allowed - decided in favor of appellant.
Issues:
- Appeal against Service Tax demand for Business Exhibition Service - Interpretation of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 Analysis: The appellant challenged the Order-in-Appeal confirming a Service Tax demand for Business Exhibition Service. The appellant, engaged in manufacturing, argued that the service was performed abroad and thus not taxable under Rule 3 of the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. The Revenue contended that the service, falling under sub-clause (zzo) of Section 65 of the Finance Act, is deemed to be performed in India if provided from outside India and received in India. The Tribunal examined the rules and found that for services specified under sub-clause (zzo) to be taxable, they must be performed in India, as per the rules. The Tribunal noted that the Business Exhibition Service in question was entirely performed outside India and not partially in India. Therefore, it concluded that the service did not fall under taxable services as per the rules. Consequently, the demand for Service Tax on Business Exhibition Service was deemed unsustainable, leading to the appeal being allowed in favor of the appellant. The judgment emphasized the importance of the specific performance location in determining the taxability of services under the relevant rules.
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