2015 (11) TMI 1183

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..... Rule 4 is not exemption from service tax. It is only a provision that where the exporter may export services without payment of duty. Rule 5 of the Export of Services Rules clearly stipulates that where the taxable service is exported, the company can claim rebate of service tax paid on such taxable service by issue of specific notification. Therefore, notification No. 11/2005 was specifically issued for this purpose which clearly says that exporter of service who discharges service tax is allowed to claim rebate under Rule 5 of Export of Services Rules . There is no restriction for exporter that he should avail only Rule 4 and not Rule 5 of Export of Service Rules when there are two options available in the statute / rules, it is the right .....

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..... rted without payment of service tax and the respondents have exported the service i. e. Business Auxiliary Service which is clearly exempted under Rule 4 whereas they have paid service tax through debit of cenvat credit and availed rebate claim. He submits that service exported was exempted from service tax which is a unconditional exemption under Export of Service Rules. They are not required to pay service tax. He submits that respondent also failed to produce document evidences of input service to claim cenvat credit. 3. On the other hand, Ld. Advocate for the respondent submitted that they are rendering export of commission agent services which falls under Business Auxiliary Service and also paid service tax under reverse charge me .....

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..... e on the fact that respondent have exported Business Auxiliary Service on payment of service tax. The LAA has discussed the issue in detail at para 5 to 14 and discussed all the issues in detail, particularly, paras-7 to11 where he discussed the grounds agitated by Revenue. Export of Service Rules facilitates the service provider with intention to avoid tax burden to be exported. Rule 4 of Service Rule only stipulates that any service which is taxable may be exported without payment of service tax. This cannot be construed as exemption from payment of service tax. The words used exported without payment of duty is different from exempted from service tax . Rule 4 is not exemption from service tax. It is only a provision that where the ex .....

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