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2019 (1) TMI 975 - CESTAT BANGALOREExport of Service or not - Business Auxiliary Service - consideration of the marketing / sales promotion services provided in India - payment of commission to the assessee in freely convertible foreign currency - Held that:- Admittedly the appellants are providing the services to their foreign company situated outside India and their parent company does not have any commercial or industrial establishment or any office in India and the services by appellant are provided in relation to provision of service recipient i.e. IBM WTC. Further it is found that the appellant satisfied all the conditions that are required under the Export of Service Rules, 2005. Further, there is no condition under Export of Service Rules, 2005 that the services performed in India would not qualify as export of service. The rules only provide that recipient of service should be situated outside India and thus specifically acknowledges that export of service can be provided in India. Further the sales commission was received in India in freely convertible foreign currencies. Therefore the appellants have fulfilled all the conditions of export of services as provided under Rule 3(1)(iii) of Export of Service rules. Tribunal in the case of Microsoft Corporation (I) Pvt. Ltd. [2014 (10) TMI 200 - CESTAT NEW DELHI (LB)] after considering various decisions of the High Court and the Supreme Court has come to the conclusion that the BAS provided by the assessee to their Singapore parent company was delivered outside India as such was used there and is covered by the provisions of Export of Service Rules and are not liable to service tax. Appeal allowed - decided in favor of appellant.
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