9911796707
TMI Blog2014 (1) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... t is received in India in convertible foreign exchange. The above Circular No. 56/5/2003-S.T., dated 25-4-2003 also clarifies that Service Tax is not payable in respect of export of services even after withdrawal of the Notification No. 6/1999, dated 9-4-1999 - From clarification issued by the Board it is evident that there was no intention to levy any Service Tax on export of services - Clarification issued by the CBEC is retrospective in effect and the benefit of exemption would be available even after the withdrawal of Notification No. 6/99-S.T. and its subsequent reinstatement vide Notification No. 21/2003-S.T - Decided in favour of assessee. - ST/64/2007 - Final Order No. A/1370/2013-WZB/C-I(CSTB) - Dated:- 7-6-2013 - Shri P.R. Chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Sections 76 and 78 of the Finance Act. Hence the appellant is before us. 3. The learned counsel for the appellant submits that vide Notification No. 6/99-S.T., dated 9-4-1999 Service Tax was exempted on services in respect of which payment is received in India in convertible foreign exchange. The said notification was in force up to 28-2-2003 and the notification was rescinded vide Notification No. 2/2003-S.T., dated 1-3-2003. Later on, on the request of the trade and industry the exemption was restored vide Notification No. 21/2003-S.T., dated 20-11-2003. When the rescinding notification was discussed in the Parliament on 25-4-2003 that Indian exporters are getting adversely affected in view of the withdrawal of the exemption notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India and accordingly, Service Tax would be rightly leviable. Accordingly, he prays for upholding the impugned order. 5. We have carefully considered the rival submissions. 5.1 In the present case there is no dispute that the appellant has rendered the service to a recipient situated abroad and the consideration for the services rendered has been received in convertible foreign exchange. Notification No. 6/99-S.T., dated 9-4-1999 as also Notification No. 21/2003-S.T., dated 20-11-2003 which are identically worded provided exemption from Service Tax in respect of services provided to any person in respect of which payment is received in India in convertible foreign exchange. The above Circular No. 56/5/2003-S.T., dated 25-4-2003 also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of goods which are ultimately exported, no credit of service tax paid can be availed or reimbursed at present as inter-sectoral tax credit between services and goods are not allowed. 4. Another question raised is about the taxability of secondary services which are used by the primary service provider for the export of services. Since the secondary services ultimately gets consumed/merged with the services that are being exported no service tax would be leviable on such secondary services. However in case where the secondary service gets consumed in part or toto for providing service in India, the service tax would be leviable on the secondary service provider. For this purpose both primary and secondary service providers woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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