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TMI Blog2013 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... 23-9-2013 - Shri Pradip Kumar Das and Shri Mathew John, JJ. For the Appellant : Shri S. Thirumalai, Advocate For the Respondent : Shri M. Rammohan Rao, DC (AR) ORDER Per Mathew John 1. The applicant is providing service of club and association. The applicant provides such services at their resorts in India as also abroad. They have also a branch office for managing their business. They incurred various expenses in foreign exchange for running their Dubai branch and also for making certain payments to Hutshinson Trust Co. Ltd. For maintenance of their club facility at Thialand. But appellant did not pay any service on such payments remitted abroad. Revenue was of the view that service tax is payable on such payments be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.1,95,644/- + Rs.36,883/- and these are services performed outside India and hence not taxable. e. Similarly, in the case of maintenance and repair service, for their resort at Thailand, there is a demand of Rs.5,21,051/-. This activity is also performed outside India and hence not taxable. f. Apart from the above arguments, he submits that branch expenses are towards salary of staff employed outside India. It cannot be considered as services rendered by branch office to the applicant. g. Further, he argues that show cause notice proposed entire services to be classified under Club or Association Service. If this position is accepted, such services will fall under the second category of services under Taxation of Services (Provided f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s classifiable as Business Support Service or Business Auxiliary Service . 4. Considered arguments on both sides. Primafacie, we find force in many of the arguments of the learned Advocate though we are not in agreement with his argument in the case of services relating to management consultancy service and market research agency service because in the case of these services the liability is determined with reference to place of residence of the recipient of service rather than place of performance. In the view of the provisions in section 66A of the Finance Act, 1994 it appears that the applicant and the Branch in Dubai have to treated as different entities. The question whether the branch is doing service to the appellant in India is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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