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TMI Blog2025 (1) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... " - CESTAT has been consistently holding that actual performance of the activities do not fall under Management Consultancy Service. Therefore, the issue stands decided in favour of the appellants. Export of services - HELD THAT:- Tribunal Ahmedabad Bench in the case of B A Research India Ltd. [2009 (11) TMI 213 - CESTAT, AHMEDABAD] held that 'The performance of testing and analysing has no value unless and until it is delivered to its client and the service is to be complete when such report is delivered to its client. Thus, delivery of report to its client is an essential part of the service report was delivered outside India and same was used outside India. This is not the disputed fact. We hold that the respondent satisfied the conditions of Rule 3(2) and accordingly the respondents are eligible for the exemption under Notification No. 11/2007-S.T. dated 1-3-2007.' - thus the Export of Services claimed by the appellants is in order and the impugned order cannot be sustained on this count. Levy of service tax on the Out-of-Pocket Expenses - HELD THAT:- The dispute has been laid to rest by the decision in the case of Intercontinental Consultants and Technocrats Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Management Consultancy Services include only the advisory services and not the actual performance functions. She further submits that Notification No.59/1998-ST dated 16.10.1998 exempts most of the activities carried out by Chartered Accountants from the levy of service during the period 01.10.2002 to 01.03.2006 and Notification No.25/2006-ST dated 13.07.2006 for the period 13.04.2006 to 31.03.2007. She relies on the following: Letter F.No. 341/21/99-TRU dated 20.08.1999 Circular No. 115/9/2009-ST dated 31.07.2009 Ernst & Young (P.) Ltd. vs. Commissioner of Service Tax, New Delhi, 2012 (7) TMI 667 - CESTAT, New Delhi M/s. Lakshmi Automatic Loom Works Ltd. vs Commissioner of Central Excise, Chennai, 2007- TIOL-1301-CESTAT-MAD Roots Multiclean Ltd vs Commissioner Of Central Excise, Coimbatore, 2005-TIOL-1619-CESTAT-MAD CCE v. Sundaram Finance Ltd, 2007 (7) S. T.R. 55 Glaxo Smithkline Pharmaceuticals Ltd. Versus Commr. Of S.T., Mumbai-I 2014 (36) S.T.R. 349 (Tri. - Mumbai) M/S Paradeep Phosphates Ltd. Versus Commissioner Of Central Excise, Customs & Service Tax, Bhubaneswar 2022 (8) TMI 541 CESTAT Kolkata Asian Hotels Ltd. v. Commissioner - 2019 (30) G.S.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Pvt. Ltd. vs. Commr. of S.T., New Delhi, 2017 (5) G.S.T.L. 154 (Tri. - Del.) affirmed in 2018 (16) G.S.T.L. J171 (S.C.) M/S Confederation of Indian Industry Versus Commissioner of Central Excise & Service Tax, Chandigarh-1 2023 (7) TMI 57 Chandigarh 5. Learned Counsel for the appellants submits also that extended period is not invocable as there was no suppression of facts etc. on the part of the appellants; penalty is not imposable and cum-duty benefit is available to the appellants. She relies on the following cases: Commissioner Of Central Excise and Service Tax, Udaipur Versus M/S Kk Gupta Construction (Vice- Versa) 2024 (30) TMI 801 CESTAT New Delhi Balkrishna Industries Ltd. vs. Commissioner of Central Excise, Alwar, 2021(4) TMI 121, CESTAT New Delhi CCE vs. First Flight Courier Ltd., 2011 (1) TMI 52 - Punjab and Haryana High Court Commissioner Of Central Excise vs. M/s. Pannu Property Dealers, Ludhiana, 2010 (7) TMI 255 - Punjab and Haryana High Court 6. Learned Authorized Representative for the Department reiterates the findings of the impugned order. 7. Heard both sides and perused the records of the case and the case laws relied upon. We find that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the respondent has shown as the service provided to their foreign clients as export of service to know the provisions of the export of service which are reproduced here as under : "Export of Services Rules, 2005 3. Export of taxable service.- (i) Export of taxable service shall, in relation to taxable services,- ………. (ii) specified in sub-clauses (a),......(zzh), (zzi),..... and (zzzp) of clause (105) of Section 65 of the Act, be provision of such services as are performed outside India : Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India; (2) The provision of any taxable service [specified in sub-rule (1)]* shall be treated as export of service when the following conditions are satisfied, namely:- (a) such service is delivered outside [provided from]* India and used outside India; and (b) payment for such service [provided outside India]* is received by the service provider in convertible foreign exchange. *[added or substituted w.e.f. 1-3-2007] #{deleted w.e.f. 1-6-2007} 8. Reading of the above provisions of Export of Services Rules, 2005 (hereinafter r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. 10. We find, in view of the above, that the Export of Services claimed by the appellants is in order and the impugned order cannot be sustained on this count. Further, we find that this Bench in the case of Optum Global Solutions India Pvt. Ltd. (supra) held that: 8.1 As regards the second issue regarding export of CRM services, we find that in the show cause notice as well as in the impugned order, the allegation is with regard to CRM services whereas the demand has been confirmed against the appellant for entire turnover comprising of Data Management services as well as CRM services, which is bad in law because the turnover for Data Management services was 58% of the total taxable value and the turnover for CRM services was to the tune of 42% of the total taxable value and therefore confirming the entire demand under CRM services is not tenable. 8.2 Further, we find that with regard to Data Management services, the department has accepted it as an export and has been granting regularly the refunds to the appellant, which is clear from the various refund orders placed on record. These refund orders have not been challenged and have attained finality which clearly establ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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