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TMI Blog2017 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... ng (India) Pvt. Limited vs. CST, Delhi [2014 (3) TMI 696 - CESTAT NEW DELHI], followed as the issue was similar where the the Tribunal has gone on to decide that the services rendered to principal in USA, who had paid for the services in foreign exchange, has to be considered as export of service - appeal allowed - decided in favor of appellant. - ST/55476/2013(SMC) - A/52497/2017–SM[BR] - Dated:- 21-3-2017 - Mr. V. Padmanabhan, Member (Technical) Shri Kishor Kunal Pranav Bansal, Advocates for the Appellant Shri R.K. Mishra, AR for the Respondent ORDER Per Mr. V. Padmanabhan The present appeal filed by the Revenue is against OIA No. OIA-IND/CEX/000/APP/101AND102/2012 dated 30.03.2012 passed by Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above services which were admittedly Business Auxiliary Services , the appellant was receiving Service Fee in convertible foreign exchange, as evidenced from the debit notes and Foreign Exchange Remittance Certificates, issued by the Bank. Since the aforementioned services were exported by the Appellant, inasmuch as, the same were provided to LD Switzerland, which is outside India and for which payments were received in foreign exchange, the appellant filed two rebate claims for the period April, 2008 to March, 2009 of the Service Tax paid totalling to ₹ 26,74,361/-. Show Cause Notice dated 27.10.2010 was issued to the appellant denying the rebate claimed on the export of Business Auxiliary Services on the grounds that the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided to LD Switzerland which is an entity located outside India and for providing such services, the consideration has been received in convertible foreign exchange. (c) As regards the findings that merely because the activities are of liaising with vendors of LD Switzerland who are situated in India, the services will not amount to being used outside India, the issue is settled in favour of the Appellant by Departmental Circular dated 24.02.2009. Further, in identical fact situation, where the assessee was procuring and sourcing products from India and was liaising from vendors in India, the activity has been held to be Export of Services by the Tribunal. They relied upon the following case laws:- (a) M/s. GAP Internatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipal situated in USA. The services rendered were similar to the services rendered by the appellant and are related to procurement of goods. In Para 8.3 of the said decision, the Tribunal examined the term recipient and observed as under:- 8.3 Though the term recipient in respect of a service is not defined in the Finance Act, 1994 or in the rules made thereunder, the gap has to be filled by construction and on the analogy of the transaction of sale of goods, the service recipient in a transaction of the provision of service, has to be treated as the person - (a) on whose instructions the service has been provided and who is obliged to make payment for the provision of service; and (b) whose need is satisfied by the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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