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TMI Blog2024 (6) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Agent for the manufacture of Merchandise . It is hence clear that the lower authorities have seriously erred in misunderstanding the facts and thereby deny the CENVAT credit availed by the appellant as inadmissible. This Bench had an occasion to consider an almost similar issue recently, in the case of MANALI PETROCHEMICALS LTD. PLANT I VERSUS COMMISSIONER OF GST CENTRAL EXCISE, CHENNAI [ 2024 (6) TMI 848 - CESTAT CHENNAI] where it was held that ' It is clear from the above that the role of the appellant is to render service to the Japan based service receiver, in delivering the product manufactured outside India, to the ultimate consumer in India namely Whirlpool Ltd.' It is apt to refer to the CBEC Circular No. 111/05/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for providing services in relation to the sale of goods / service provided by the respondent therein was to facilitate sale in India of the goods of the principal and claiming such service as export of service in terms of Rule 3 of Export of Service Rules, 2005 was incorrect as the conditions laid down under the said Rule 3 had not been satisfied since the service was used in India. 1.1 The first appellate authority records having granted sufficient opportunities to the respondent but, however, vide the impugned order has decide the allow the Revenue s appeals in the absence of any representations on behalf of the respondent therein. 2. Heard Shri Jatin Christopher, learned Chartered Accountant for the appellant and Shri Anoop Singh, learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o render service as per the Buying Agency Agreement between the foreign entity-service recipient and the appellant, for which the consideration is received in India in foreign currency. The scope of functions of the Appellant as prescribed in the above agreement, as could be seen from Article 4 reads as under: The Agent undertakes to:- - Select suppliers within the territory. The agent shall not solicit suppliers from outside the territory without prior written authorization from the principal to that effect. -Place orders issued by the principal for the merchandise with the suppliers, and provide the specifications -Carry out, directly or through any third party, the quality control of the merchandise in order to ensure that they comply wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue, the Bench concurred with the taxpayer s contentions and held that the finding of the lower authority therein was bad and unsustainable. Relevant finding is reproduced below: 7. The above is not the case here in the case on hand; the understanding is between the service provider / appellant and the service recipient abroad, resulting in the provision of service and not with the consumer. After all, in a typical case like the one on hand, the service recipient is located outside India, employing the services of service provider that is Indian entity, the understanding for providing service is for extending the benefit of the product manufactured by it to ultimate consumers. In any case, it is not the case of the Revenue that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicial fora and has concluded at paragraph 34 as under: As noticed above the only requirement after the amendment to Rule 3(2) of the 2005 rules is that the service recipient should be situated outside. India and consideration should be received in foreign currency. Both the conditions stand satisfied. Even otherwise, for the period prior to February 27, 2010, it has been held that no service tax could be levied. Thus, it was material as to whether the appellant was able to substantiate the quantum of services provided after February 27, 2010, and the consideration received thereon . 11. We note that the learned Delhi Bench has referred to and relied on its own earlier order in the case of M/s. GAP International Sourcing, apart from its own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... phrase 'used outside India' is to be interpreted to mean that the benefit of the service should accrue outside India. Thus, for Category III services [Rule 3(1)(iii)], it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. In all the illustrations mentioned in the opening paragraph, what is accruing outside India is the benefit in terms of promotion of business of a foreign company. Similar would be the treatment for other Category III [Rule 3(1)(iii)] services as well. . 10. On an overall analysis and in view of the above discussion, we are of the considered opinion that the action of the authorities in denying th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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