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TMI Blog2012 (8) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... reverse charge mechanism on the services availed by them from their parent company as they have not paid any remuneration for the training charges. If at all any charges were paid for training outside India is not chargeable to service tax as per provisions of Taxation of Services (Provided from outside India and received in India) Rules, 2006 - Decided against Revenue. - ST/626, 627/2011 - 815-816/2012 - Dated:- 20-7-2012 - Shri Ashok Jindal, Shri Mathew John, JJ. Shri D.P. Naidu, SDR For the Appellant Shri S.A. Saravana Kumaran, Consultant For the Respondent Per Ashok Jindal Revenue has filed these appeals against the impugned orders wherein the Commissioner (Appeals) has set aside the orders of adjudication dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... performed partly outside India and partly performed in India. Therefore, they are liable to pay service tax under the reverse charge mechanism under the category of commercial coaching and training services . 3. On the other hand, the learned counsel for the respondent submits that in this matter, the respondent s employees had gone to the parent company located in Germany and got training over there and all the expenses on account of the services are only towards travel, accommodation and other expenses in relation to training. This contention has not been controverted by the Revenue with any supporting evidence. On the other hand, it is alleged against the respondents that they have not produced evidence that their parent company has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te are not expenditure incurred by the company for training purposes but they were towards travel, accommodation and other expenses in relation to training; that the appellant had produced evidence to prove that they had not been charged any training fees during the disputed period; that the appellant incurred expenditure outside India and the provisions of Import of service rules not applicable; that Rule 7 of Valuation Rules 2007 seeks to tax the actual value of consideration charged for the services provided excludes the reimbursements made to Foreign Service provider from the purview of the Service tax; that they had already produced two certificates from the foreign service providers to the extent that they are not charged training fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax rules, 1994 charging that the appellant as service receiver needs to pay service tax on the convertible foreign exchange paid to the foreign Service provider. But the Lower Adjudicating Authority vide impugned Order-in-original confirmed the demand under Rule 3(ii) of services (provided from outside India and received in India) Rules, 2006 which is applicable to the services partly rendered in India. I find that the Lower Adjudicating Authority had traversed beyond the Show Cause Notice as the provisions under which the demand was raised in SCN and the provisions under which the demand was confirmed vide impugned Order-in-Original are contrary, thus making the impugned order not maintainable. Rule 2(1) (d) (iv) of the Service Tax Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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