9911796707
TMI Blog2024 (1) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... orms agreed upon by them. The activities undertaken pursuant to the agreement were considered by the appellants export of service and accordingly, no service tax liability was discharged by them for provision of the services in favour of the overseas entities. However, the department objected to the fact of non-payment of service tax on the ground that the investment advisory services were meant for investment in stock market in India/Indian companies and as such, those services would not be qualify as export of service as per the conditions laid down under Rule 3(2)(a) of the Export of Service Rule, 2005. The department had also objected to the fact of availment of Cenvat Credit on the input services namely, rent-a-cab service, outdoor cat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport should be available on provision of output services to the group entities located abroad and no service tax was payable on provision of such services. With regard to denial of Cenvat Credit on the input services, he submitted that in reply to show cause notice, the appellant had categorically stated that those disputed services were used/utilized in connection with the provision of the output service and as such, qualify as 'input service' in terms of Rule 2(l) of the Cenvat Credit Rule, 2004 for the purpose of consideration as input service for utilization towards payment of service tax on the output services. 3. On the other hand, the learned AR appearing for the Revenue reiterated the findings recorded in the impugned order. 4. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of qualifying certain transaction as export of service. The relevant paragraph in the said circular is also extracted herein below: "It may be noted that the words "accrual of benefit" are not restricted to mere impact on the bottom-line of the person who pays for the service. If that were the intention it would render the requirement of services being used outside India during the period prior to 28.2.2010 infructuous. These words should be given a harmonious interpretation keeping in view that during the period upto 27.2.2010 the explicit condition was provided in the rule that the service should be used outside India. In other words these words may be interpreted in the context where the effective use and enjoyment of the service has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
