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TMI Blog2018 (11) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... facts on record, it is found that the impugned services provided outside India will fall within the ambit of Rule 3(ii). Even as per the show cause notice, it is alleged that the services provided in Thailand and other places are leviable to service tax since it is intended for members in India. Thus, department does not have a case that the impugned services are physically performed in India. Appeal allowed - decided in favor of appellant. - Appeal No. ST/522/2011 - Final Order No. 42343/2018 - Dated:- 29-8-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Thirumalai, Advocate for Appellant Shri K. Veerabhadra Reddy, Addl. Commr. AR) for Respondent ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43,60,316/- with interest and also imposed penalties under Sections 76, 77 and 78 of the Finance Act. Hence this appeal. 2. Today, when the matter came up for hearing, on behalf of the appellant, ld. counsel Shri S. Thirumalai made oral and written submissions which can be broadly summarized as under:- 2.1 The demand raised under club or association service for levying service tax under import of services is not taxable since nowhere in the show cause notice, any evidence has been put forth to show that the services involved were partly or wholly performed in India. 2.2 Ld. counsel adverted to Board Circular dated 19.4.2006 (para 4.2.8) to submit that in the context of club or association service, the same should be physically perf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fessional fees pertains to legal expenses that is provided by service providers outside India. The said services were also for investment activities outside India though the amount was borne by the appellant. Merely because the appellant has borne the amount as a service provider as well as service recipient outside India, such demand on professional / legal fees cannot be subject to service tax. 2.8 The proceedings per se are hit by limitation for the reason that the transaction becomes revenue neutral. Ld. counsel adverted to the case law of Jet Airways Ltd. [2016-TIOL-2072-CESTAT-MUM] to support his contention. For the same reasons, ld. counsel submits that the penalties imposed are also unjustified. 3. On the other hand, ld. AR Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to be physically performed partly or wholly in India. Even as per the show cause notice, it is alleged that the services provided in Thailand and other places are leviable to service tax since it is intended for members in India. Thus, department does not have a case that the impugned services are physically performed in India. In the instant case, from the table found in para 15 of the impugned order and the analysis thereof, we find that all the services listed therein are such that they have not been physically performed in India, even partly, and have been so performed only outside the country, hence service tax liability thereon will not arise. 5.1 In respect of branch expenses, the case law of Tech Mahindra Ltd. (supra) and 3i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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