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TMI Blog2023 (8) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Warehousing service under sub-clause (zza) of clause (105) of Section 65 of Finance Act, 1994 will only be taxable as import of service under Rule 3(ii) of taxation of services (Provided from outside India received in India) Rules 2006 when such service has been performed in India. Whereas, in the present case, the service of storage and warehousing has been received outside India. Hence, it is not taxable service under Section 66A read with Rule 3(ii) of services (provided from outside India and received in India). The issue is also covered in favour of the appellant by the judgment of the CESTAT in the case of SUNDARAM CLAYTON LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI [ 2014 (6) TMI 30 - CESTAT CHENNAI] where it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax as recipient of services under Section 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the service tax Rules, 1994 on the payment made to foreign service provider for having received storage and warehousing services under section 65(105)(zza) of the Finance Act, 1994. 3. On these allegations, a show cause notice was issued demanding the service tax of Rs. 3,28,974/- along with interest and also proposed equal penalty under Section 78 of Rs. 5000/- under section 77 of the Finance Act, 1994. 4. After following the due process, the original authority has confirmed the demand. Aggrieved by the said order, the appellant filed an appeal before the Ld. Commissioner (Appeals) who rejected their appeal. Hence, the present app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iterated the findings of the impugned order. 9. After consideration the submissions made by both the sides and perusal of the material on record, we find that the only issue involved in the present case is whether the appellant is liable to pay service tax on the services of storage warehouse provided by a person in abroad and warehouses are also situated outside the country but the actual benefit of such services have been received in India by the appellant. The provision relating to taxability of such services and import of services rules are extracted below:- 66A.Charge of service tax on services received from outside India, (1) Where any service specified in clause (105) of section 65 is,- (a) provided or to be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country. Explanation 2-Usual place of r sidence, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted. 3. Taxable services provided from outside India and received in India Subject to section 66A of the Act, the taxable services provided from outside India and received in India shall, in relation to taxable services- (i) specified in sub-clauses (d), (p), (q), (v), (zza), (zzza), (zzzD), (zzzC), ((zzzh). (zzzr), (zzzy), (zzzz)) of clause (105) of section 65 of the Act, be such services as are provided or to be provided in relation to an im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zc), and (zzzr) does not relate to Immovable property, and (c) those specified in clause (ii) of this rule, be such services as are received by a recipient located in India for use in relation to business or commerce. [Provided that where the taxable service referred to in sub clause (zzzz)) of clause (105) of Section 65 of the Act is received by a recipient located in india, then such taxable services shall be treated as taxable service provided from outside India and received in India subject to the condition that the tangible goods supplied for use are located in India during the period of use of such tangible goods by such recipient] . 10. Further, we find that in this case storage and warehousing service has been recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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