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TMI Blog2017 (5) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... he export of service u/r 3(ii)(i) (a) and 3(ii)(i) (b) of Export of Services Rules, 2005 read with Section 65(105)((zzb) of the FA, 1994 - the services are considered as export of services and refund allowed on same - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rule 3 of Export of Services Rule, 2005, export of service is exempted from Service tax. The appellant wrongly paid Service tax on the commission got from M/s. General Motors Corpn. through Indian Railways and claimed the refund of tax. The adjudicating authority rejected the refund claim because it is hit by Rule 3(1)(b) of the said Rules. The Commissioner (Appeals) upheld the adjudication order. 5. After hearing both the sides and on perusal of the record, the relevant portion of the Annexure to Purchase Order dated 31-12-04 is reproduced below: "5. Agency Commission - 5% i.e. USD 60433.73 shall be paid in equivalent to non-convertible Indian Rs. at the T.T. buying Rate of Exchange prevailing on the date of supply order which is US ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elivered outside India and used outside India; and (b) payment of such service provided outside India is received by the service provides in convertible foreign exchange". 7. In order to avail the benefit of Rule 4, the assessee has to fulfil the conditions of Rule 3(2) of the said Rules. I agree with the submission of the ld. DR that the purpose of Rule 3(2) of the said Rules is to earn convertible foreign exchange and then benefit of exemption of Service tax would be extended to the assessee. In the present case, it is revealed from the Purchase Order that payment would be made to the appellant by convertible foreign exchange from USA company through Indian Railways, who paid in Indian Rupees as the same amount of foreign exchange was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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