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TMI Blog2024 (1) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... arious overseas clients (Group companies) as per the contractual norms agreed upon - export of service as per the conditions laid down under Rule 3(2)(a) of the Export of Service Rule, 2005 or not - HELD THAT:- It is an admitted fact on record that the appellants have entered into the agreement with the overseas entities for providing the services under the category of non-binding investment advisory services in their behalf. The payment for provision of said services were also received in convertible foreign exchange. The services provided by the appellants were for the benefit of the overseas entities and as such, falls under the Category-III of services defined under Rule 3(1) (iii) ibid - CBEC vide Circular dated 13.05.2011 has also cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s qualified as export of service. ii) The appellants were entitled to avail Cenvat Credit on the disputed input services.
There are no merits in the impugned order, insofar as it has confirmed the adjudged demands on the appellant - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices are classifiable under category (iii) services, as per Rule 3(1) (iii) of Export of Service Rules, 2005 and therefore the disputed transaction should be construed as export, when provided in relation to business and commerce to a recipient located outside India. He further submitted that the conditions prescribed under Rule 3 (2) ibid have been duly complied with by the appellant inasmuch as the service recipient is the overseas entity. In this context, learned Advocate has relied upon the order of the Larger Bench of this Tribunal in the case Arcelor Mittal Stainless India Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai - 2023-TIOL-469-CESTAT-MUM-LB,to support the case of the appellant that the benefit of export should be availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "For the services that fall under Category III [Rule 3(1)(iii)], the relevant factor is the location of the service receiver and not the place of performance. In this context, the 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." Further, the CBEC vide Circular dated 13.05.2011 has also clarified the said phrase 'used outside India', mentioning that the benefit should accrue in favour of the overseas entities for the purpose of qualifying certain t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that in the reply to show cause notice, the appellants had categorically stated that the disputed services were used/utilized for provisions of the output service. However, while dealing with the matter, the adjudicating authority has denied the benefit of Cenvat Credit solely on the ground that no documentary evidences were produced to demonstrate that those disputed services would be considered as input service. Since, the appellants are the business entity and utilized the services for provision of the output services and also paid the service tax on the input services, it cannot be said that those disputed services were not used/utilized for provisions of the output services. Since, the disputed services were used for accomplish ..... X X X X Extracts X X X X X X X X Extracts X X X X
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