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2018 (1) TMI 15 - AT - Service TaxBusiness Auxiliary Service - whether the income earned out on account of service claimed as export under the category of Business Auxiliary Service is chargeable to service tax during the period 01.04.2009 to 31.03.2011? - marketing activities like maximizing the markets for Microsoft products including all local advertising, dissemination of information to potential customers, commenting on any developments in the territory affecting the software industry, investigating feasibility for new markets for Microsoft products etc. - Held that: - an identical issue has been examined by this Tribunal in the appellants own case M/s. Microsoft Corporation (I) (P) Ltd. Versus CST. New Delhi [2014 (10) TMI 200 - CESTAT NEW DELHI (LB)], where it was held that the services are being provided by the appellant to Singapore Recipient company and to be used by them at Singapore, may be for the purpose of the sale of their product in India, have to be held as export of services - such services provided to M/s Microsoft Operations P. Ltd. Singapore, amount to export of services and hence are not liable to service tax, we hold that the services being provided by appellants satisfy the conditions of Export of Service Rules, 2005, hence are not liable to service tax. Valuation - includibility - reimbursement received on account of services claimed as exported - Business Auxiliary Services - Held that: - the Business Auxiliary Services in relation to MSS is covered as export of service under Export of Service Rules, 2005, the reimbursement in relation to MSS would also therefore, be not liable to service tax. Levy of service tax - maintenance and repair of software - Board Circular No.256/1/2006-CX-04 dated 07.03.2006 - Held that: - The appellants have argued that product support services have been held to be non taxable in their own case by the Division Bench of this Tribunal because there was no difference of opinion on this issue between the two members and accordingly the issue is covered by the Final Order no.53737/2014 dated 23.09.2014 - demand set aside. Reverse charge mechanism - expenditure on foreign currency - Held that: - the fact remains that the Ld. Commissioner has given no findings at all on the above demand in the impugned order and it would be in the interest of justice that the supporting evidence for the impugned period are submitted before the adjudicating authority, who will carefully examine the evidence in respect of this particular demand and given his findings and conclusion on the evidence and the submissions of the appellant made before him. The matter pertaining to service tax on foreign expenditure for 17.04.2006 to 31.03.2009 is remanded back to the Ld. Adjudicating authority to pass a fresh adjudication order after giving fair opportunity to appellants to defend their case - appeal allowed by way of remand.
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