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2016 (12) TMI 439 - CESTAT NEW DELHIRebate of service tax u/r 5 of Export of Services Rules, 2005 read with Notification No. 11/2005-ST dated 19.04.2005 - receipt of foreign exchange - the rendering of marketing support and project management services to group company i.e. Rolls Royce Marine AS, Norway - whether export of services or not? - rejection of refund on the ground that the considerations for the services rendered by the Appellant to the foreign company have not been received in convertible foreign exchange - Held that: - the payment has been received from the foreign customer via Christiania Bank OG, Kreditkasse. The Reserve Bank regulations permit such amounts received through intermediate nostro accounts as receipt of payment in Foreign exchange. Accordingly rebate claims under Rule 5 merits sanction since the only reason for rejection is non-receipt of payments in Foreign currency. The issue is no longer res integra as it has been decided in favour of assessee by the Tribunal in the case of M/s Samit Enterprises Pvt. Ltd. Versus CCE & ST (Adj.) , New Delhi, [2016 (6) TMI 831 - CESTAT NEW DELHI], wherein the Tribunal has held that where the commission is paid by the Indian buyers to the appellant as per arrangement with the foreign supplier sending the commission to the appellant, in effect, the commission was paid to the appellant on behalf of the foreign supplier only and can be deemed to have been paid in foreign exchange as the buyers would have had to remit the commission part also to the foreign supplier who would have in turn sent it to the appellant. This arrangement thus makes the procedure simpler without any material difference with regard to foreign exchange implication to India. Rebate allowed - appeal allowed - decided in favor of appellant.
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