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TMI Blog2015 (8) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... issue has been decided by the Division Bench of this Tribunal in the case of Commissioner of Central Excise, Hyderabad Vs. Deolite Tax Services India Pvt. Ltd. [2008 (3) TMI 35 - CESTAT, BANGALORE], wherein the back office service provided by the Deolite to their client situated outside India was held to be export of service in the nature of Business Auxiliary Services. Place of Use of service - In case of remittance of money by a person located outside India through a Banker of Remitter located outside India to a person in India. In such case, the transaction relating to the services provided by the Indian company (counterpart) by way of delivering the money in India to the receiver of the money is a service rendered to the client loca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion relating to investment made by the Funds Manager. These services are classifiable under the Banking and Financial Service (BFS). Vide another agreement dated 1.7.2005 with New Vernon LLP (Investment Manager), USA, the appellant renders the services of back office operation support and provisions of auxiliary services in connection with investment made and compilation of data and generation of interim reports on valuation, financial and the status of investments. These services are classifiable under Business Auxiliary Services (BAS). The respondent is registered with the Service Tax department under the aforesaid two heads and paid Service Tax thereon. 2.1 The respondent assessee, who is located in India, delivers the services to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date of refund claim Period Amount Date of OIO Date of OIA 7.2.2008 1.04.2007 to 30.9.2007 30,50,163/- 12.8.2009 14.3.2013 30.12.2008 1.10.2007 to 31.3.2008 8,77,413/- 31.8.2009 14.3.2013 20.3.2009 1.4.2008 to 30.9.2008 47,72,156/- 30.9.2009 14.3.2013 2.3 Being aggrieved, the respondent assessee carried the matter in appeal before the Commissioner (Appeals). The learned Commissioner (Appeals) found that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Finance Act, 1994, 2010, which substituted the words used in by words used for with retrospective effect i.e. from 14.3.2006. Therefore, input services in question had been used for providing the output service which were exported without payment of Service Tax. 2.4 The Revenue being aggrieved by the order of the Commissioner (Appeals) granting refund has filed the present appeals on the following grounds:- (a) Advisory services are used in India and benefits of those services are accruing in India and not outside India and, therefore, the provisions of the Export of Service Rules are not fulfilled because:- (i) The investment company renders investment related services in India. This is evident from the agreement betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stment Manager (client) located outside India. Also, in view of the fact that the investment Manager located outside India is using the output services provided by the assessee for making investment in India, for which the assessee is getting fixed fee along with reimbursement of pocket expenses, which are not in the nature of Advisory or Support services. This ground is also dismissed for the reason that the two conditions under Rule 3(2) of Export of Service Rules being satisfied as discussed in the preceding paragraph, there is no doubt that there have been export of service by the respondent assessee. 3.3 The next ground with regard to the back office support provided in India to its client located outside India, is the support se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady discussed above. Further, this issue has also been decided in favour of the assessee by the Larger Bench's decision of the Tribunal in the case of Paul Merchants Ltd. Vs. Commisisoner of Central Excise, Chandigarh - 2013 (29) STR 257 (Tri-Del), wherein it has been held that in case of remittance of money by a person located outside India through a Banker of Remitter located outside India to a person in India. In such case, the transaction relating to the services provided by the Indian company (counterpart) by way of delivering the money in India to the receiver of the money is a service rendered to the client located outside India, who is the receiver of service, having paid for the said services. 4. The learned Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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