2020 (1) TMI 588

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..... he contrary, they are providing services to overseas group companies, the provision of Section 66A and Rule made there under is absolutely not applicable, therefore, the demand is also not maintainable. Appeal allowed - decided in favor of appellant.
HON'BLE MR. RAMESH NAIR, MEMBER (JUDICIAL) AND HON'BLE MR. RAJU, MEMBER (TECHNICAL) Ms. Vanashri Kalbhor & Shri S.R. Dixit, Advocate for the Appellant Shri V. Lukose, Authorised Reprensentative for the Respondent ORDER RAMESH NAIR The brief fact of the case is that the appellants are receiving the reimbursements towards the services of the manpower and other miscellaneous costs incurred on behalf of the Overseas Group Company in connection with the supply of goods by Indian Companies to .....

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..... y Indian supplier to their overseas group companies. In this transaction, it is the appellant who are providing the service to the overseas group companies. The demand was made invoking Section 66A and Rules made there under which is reproduced below:- Section 66A of the Finance Act, 1994 "(1) Where any service specified in clause (105) of section 65 is, - is, - (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permane .....

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..... as been set aside. The same issue has also been considered by this Tribunal in the case of Sumitomo Corporation India P. Ltd. Wherein the Tribunal has given the following finding:- "8. We have heard both the sides and perused the appeal records. On the first two issues relating to liability of appellant/ assessee for service tax under the category of BAS we note that the service tax liability and the activities similar to the ones undertaken by the appellant/assessee were subject matter of decision by the Tribunal in earlier cases. In Paul Merchants Ltd. (supra) it is recorded that Export of Service Rules, 2005 are in accordance with Apex Court's ruling to the effect that service tax is a value added tax which in turn is a destination bas .....

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