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TMI Blog2016 (12) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... n currency. This has also satisfied the second condition specified in the export of Services Rules. We also note that the CBEC clarification has been issued in the context of situations of the type faced by the appellant in the present case - the activities covered in the present dispute are clearly covered within the Export of Service Rules, 2005. Consequently no service tax will be payable on reverse charge basis - appeal allowed - decided in favor of appellant-assessee. - Service Tax Appeal No. 1720 of 2011 - -Final Order No. 55608/2016 - Dated:- 28-11-2016 - Shri S.K. Mohanty, Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Ms. Saloni Bajaj and Shikha Bhardwaj, Advocates for the appellant Shri Govind Dixit, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce as per Rule 3 (1) (iii) of the Export Rules ; (ii) the activities undertaken by them are covered within the CBEC Circular No. 111/05/2009-ST dated 24/02/2009, wherein it has been clarified that in case of Indian agent who undertakes marketing in India of goods of a foreign seller, Export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India . (iii) the consideration has been received from the foreign principles in foreign exchange; further the service recipient is located outside India ; (iv) They have relied upon the following case laws :- (a) Paul Merchants vs. CCE, Chandigarh reported in 2013 (29) S.T.R. 257 (Tri. Del.) ; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side India, the service has been rendered in India. 4. We find that the CBEC Circular dated 24/02/2009 has clarified regarding the applicability of the provisions of Export of Service Rules in certain situations. The relevant paragraph of the Circular is reproduced below :- 3. For the services that fall under Category III [Rule 3 (1) (iii)], the relevant factor is the location of the service receiver and not the place of performance. In this context, the phrase used outside India is to be interpreted to mean that the benefit of the service should accrue outside India. Thus, for Category III services [Rule 3 (1) (iii)], it is possible that export of service may take place even when all the relevant activities take place in India so l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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