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2016 (3) TMI 139 - CESTAT MUMBAIImport of services - Advertising Agency services - Appellant manufactured pharmaceutical products and exported to Ukraine under an agreement for market promotion and publicity - Demand raised considering the services as advertising agency services taxable under Section 65 (105)(e) of Finance Act, 1994 - Held that: the goods are manufactured by the appellant and has deemed the services rendered in Ukraine to have been imported into India for business and commerce. The scheme of 'deeming of import of services' for taxation, can be reasonably inferred that the 'business or commerce' in Rule 3(iii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 is not intended tax services that are rendered in connection with business or commerce outside the territory of India. Since the appellant has no requirement of 'advertising agency service' for manufacture and export of goods, the tax demanded in the impugned order is not on the consideration for a service received in India but a tax on the funds transferred in a cross-border transaction. Such a tax is not contemplated in Finance Act, 1994. Therefore, no Service tax can be demanded. - Decided in favour of appellant
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