9911796707
TMI Blog2024 (7) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... patented "Nalco 360 service" i.e. an IT enabled service in relation to monitoring of the performance of the sold units. An Agreement was entered into Nalco USA and the appellant to provide the IT enabled services for the units located in USA, which was to be done from India. For such services rendered, based on the value of service rendered, Nalco Company, USA were paying the consideration to the appellants in convertible foreign exchange. The Department issued show Cause Notice on the ground that no Service Tax is being paid by the Appellant for the consideration received from Nalco, USA. Show Cause Notice was issued on 09/10/2012 for the service rendered during the period 2007-08 to 2011-12. After due process, the Adjudicating Authority c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration through convertible foreign exchange only. He submits that the Department has taken the view that the amount is required to be received directly from the clients only. Since the amount has been received from Nalco Company, USA, the Department is taking the stand that the condition under Rule 3(2)(b) is not fulfilled. He submits that this is erroneous since there is no condition specified under Rule 3(2)(b) to the effect that the amount has to be received only directly from the client and not through any other persons. In such a case, so long as there is a direct relation between the foreign currency received and the service rendered, it would be taken that all the conditions have been fulfilled and the service should be treated as & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax. They have also been filing all their ST-3 Returns properly. In view of these facts, the Department cannot allege any suppression on the part of the Appellant to fasten the liability of extended demand on them. Accordingly, he prays that the confirmed demand for the extended period may be set aside on account of limitation also. 6. The Learned AR submits that the Appellant has rendered service to the customers who are situated abroad but they have not received any payment from them. The payments are being received form their associate company. Therefore, he justifies the stand taken by the lower authority to confirm the demand. 7. Heard both sides and perused the appeal papers and documentary evidence produced before us. 8. On goi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtible foreign exchange. 9. Further, we do not see any specific bar or condition at Rule No. 3(2)(b) that the convertible foreign exchange should be received only from the clients and not through any other person. Therefore, we are not in agreement with the Revenue's contention that the amount is not being received in convertible foreign exchange. Since the Appellant has fulfilled all the requirements under Export of Service Rule, 2005, we hold that on merits the confirmed demand is required to be set aside. We do so. 10. In respect of reimbursements given to Nalco Company USA, there are the costs initially incurred by them and the same is being reimbursed by the appellant. There is no allegation that such amounts are being paid by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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