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TMI Blog2018 (10) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... same in foreign exchange to the Parent Company at Singapore along with other said proceeds. Outflow of foreign exchange has been reduced to the extent of commission/service charge retained by the Appellant within India. Such retention has to be necessarily treated as saving of foreign exchange. Appeal allowed - decided in favor of appellant. - ST/86872/2018 - A/87580/2018 - Dated:- 10-10-2018 - Shri Ajay Sharma, Member (Judicial) For the Appellant : Shri Rajiv Luthia, Chartered Accountant For the Respondent : Shri O M Shivdikar, Assistant Commissioner (AR) ORDER Per: Ajay Sharma The instant appeal has been filed from the Order-in-Appeal No. CD/TR(Appeal)/MC/43/2017-18 dated 20th February 2018. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased by them but many times they made payment for the Parent Company s products to the Appellant in India and the appellant in turn after deducting their service charge/commission in term of Clause 4 of the Service Agreement, transfer the remaining amount to the Parent Company at Singapore through banking channel. In other words, the Appellant remits the net charge to the Parent Company after deducting its service charges/commission. For the period from July, 2011 to September, 2011 the Appellant had filed refund claim of ₹5,09,803/- under the Export of Service Rules, 2005 for rebate of Service Tax paid on export of services. The same was rejected by the Adjudicating Authority vide Order-in-Original dated 19th January 2016. On appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Service Rules, 2005. The above mentioned decision has also been followed by this Tribunal in the matter of Pam Pharma Allied Machinery Co. Pvt. Ltd. Vs. CST, Mumbai (2015) (7) TMI 755 in which this Tribunal while holding that the Appellant has complied with conditions of Export of Services Rules, 2005, granted refund to the appellant. He also relied upon the decision of Chennai Bench of this Tribunal of in the matter of Arafaath Travels Pvt. Ltd. Vs. CST, Chennai reported in 2017 (7) GSTL 437 (Tri.-Chennai) in which it has been held that procedure of retaining the serviced charge/commission amount and only remitting the remaining portion of the proceeds will have to be necessarily treated as saving of foreign exchange and by i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompliance of which, the Appellant s claim has been rejected by the authorities below is stated as under:- Rule 3(2) of Export of Services Rule, 2005 (2) the provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied namely:- (a) (****) (b) Payment for such service is received by the service provider in convertible foreign exchange. 8. Although Rule 3(2) requires the payments to be received by the service provider i.e. the Appellant herein, in convertible foreign exchange, but in view of the decision mentioned above and in particular the decision of the Hon'ble Supreme Court in the matter of J. B. Boda Co. Pvt. Ltd. (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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