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TMI Blog2014 (9) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... or both onsite as well as offshore services. It is also confirmed by the Counsel that VAT/GST liability has been discharged by TTL Korea at the time of supply of services to TDCVL. If that be so, the question of subjecting the same transaction to Service Tax in India at the hands of TTL would not arise at all. As regards the offshore services rendered by M/s. TTL to TDCVL, the same amounts to export of service in terms of Rule 3(2)(a) of the Export of Service Rules, 2005. Information Technology Software service is classifiable under Rule 3(1)(iii) as category-3 service which relates to service consumed abroad by the recipient who is situated outside India. To consider the transaction as export, two conditions have to be satisfied namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered, the TDCVL agreed to pay a lump sum consulting fee of US$ 10,02,000/- The said payment was to be made in 12 monthly installments and TTL Korea was authorized to raise 12 monthly tax invoices of US$ 83,500/- each which consisted of 45,000 US$ for onsite services and 38,500 US$ for offshore services. The department was of the view that M/s. TTL are liable to pay Service Tax on the entire amount received inasmuch as TTL Korea has rendered the services to TTL which is classifiable under the category of Business Auxiliary Services . Accordingly, on the entire amount received for the services rendered, a show cause notice dated 24-4-2012 was issued demanding Service Tax of ₹ 1,48,90,191/- under Reverse Charge Mechanism in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no receipt of service in India and the situation is just the opposite. They have rendered the service to a foreign entity situated in Korea through their branch office at Korea. Therefore, there is no consideration paid by TTL to TTL Korea for any services received. On the other hand, they have received consideration for the services rendered in convertible foreign exchange and, therefore, the offshore services rendered by them should be considered as export of service , in which case also there is no liability to pay Service Tax. Accordingly, he pleads for grant of stay and allowing the appeals. 4. The learned Addl. Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. It is his submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts to export of service in terms of Rule 3(2)(a) of the Export of Service Rules, 2005. Information Technology Software service is classifiable under Rule 3(1)(iii) as category-3 service which relates to service consumed abroad by the recipient who is situated outside India. To consider the transaction as export, two conditions have to be satisfied namely the service should be provided from India and should be used outside India and the consideration for the services rendered should be received in convertible foreign exchange. In the present case, it is not in dispute that these conditions have been satisfied for the offshore service rendered by TTL to TDCVL. 5.4 In the impugned order, these issues have not been examined at all by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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