9911796707
TMI Blog2009 (5) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... to avoid litigation and valuation issues when a service is partly performed in India and outside India. When it is partly performed, full value is to be taken. Similarly if it is fully performed in India, there would be no dispute about the liability since the same would be on the full value of the service. When the service is fully provided outside India, this proviso is clearly not at all applicable - Where reverse charge mechanism is not applicable; the service tax would not be liable. – Refund allowed - ST/201/2008 - A/967/WZB/AHD./2009 - Dated:- 29-5-2009 - B.S.V. MURTHY, TECHNICAL MEMBER D.S. Negi for the Respondent. ORDER 1. Appellants are engaged in the manufacture of pharmaceutical products. They claimed a refund o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eiterates the arguments advanced by the lower authorities. 4. I have considered the submissions made by both the sides. There is no dispute that in this case in respect of technical testing and analysis service, reverse charge mechanism whereby the burden to pay service tax is reversed from service provider to the service receiver is applicable. There is also no dispute that it has become operative from 19-4-2006. Appellants thinking that they are liable to pay the service tax paid the same and, thereafter, have claimed refund which has been rejected. This technical testing and analysis service is specifically covered in the list appended to rule 3(ii) of the "Taxation of Services (Provided from Outside India and Received in India) Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax in a particular condition. if the services are fully performed outside India the receiver of the services in India is liable to pay service tax in a particular condition. If the services are fully performed outside India the receiver of the services in India is liable to pay service tax and if the services are partly performed in India the provider is liable to pay service tax and accordingly in this matter the person liable to pay service tax is the receiver of the services i.e the appellant." 6. I find the logic adopted by the Commissioner not applicable. The objective of the proviso is to avoid litigation and valuation issues when a service is partly performed in India and outside India. When it is partly performed, full value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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