9911796707
TMI Blog2010 (9) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax. He also relies on the Circular F. No. 137/307/2007-CX.4 (Pt.) dated 24-2-2009 to state that since the payment for the services provided is being received in foreign currency, the services provided has to be deemed to have been exported. He further states that as regards the contract fee received @ Rs. 1,00,000/- p.m., the service tax liability will be about Rs. l.20 lakhs which the appellants are willing to pre-deposit. He has also pleaded financial hardship on the ground that the appellants are facing shortage of working capital due to global economic recession and unrest in Srilanka. 3. Heard Shri T.H. Rao, learned SDR appearing for the Department. He states that the appellants are providing the impugned services withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishment or office located outside India. Further, Rule 3(2) also provides two more additional conditions stipulating that such service should be delivered outside India and used outside India and payment for such service provided outside India is received by the service provider in convertible foreign exchange. We find that the learned counsel has argued before us that the agreement between Srilankan Airlines and the appellants has been made with the headquarters of Srilankan Airlines in Srilanka and therefore, it can be said that the order for provision of the service has been made from outside. He has also argued that the payment for the service has been received in foreign exchange. However, he has not been able to show us, at this stag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndered, within the specified territories in India and the services are also consumed in India only. Even amount for the freight/fare is generally paid by the consumer of travel services in Indian Rupee. The said GSA services are not provided to Srilankan Airlines situated in Srilanka. Mere receipt of convertible foreign exchange which was done at the instance of Translanka and execution of contract/agreement at Srilanka will not make a taxable service rendered in India, as Export of Service. Therefore, the above contention is not acceptable. Therefore, I hold that the services rendered to Srilankan Airlines are not to be treated as 'Export of Services' and the payments (ORC) received for rendering the taxable service in India is liable to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
