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2020 (1) TMI 316 - AT - Service TaxClassification of services - Business Auxiliary Services or not - export of services - CBEC Circular No. 111/05/2009-ST dated 24.02.2009 - services rendered relating to sales promotion of the specified products produced by their parent company, Fanuc Ltd., Japan and the said services fall within the ambit of ‘Business Auxiliary Services’ - HELD THAT:- The services are rendered to Fanuc Ltd., Japan by the appellants. The beneficiary of the service is situated outside India and the services rendered in India. It is not disputed that the remuneration was paid in convertible foreign exchange - also, CBEC vide Circular No. 56/5/2003-ST dated 25th April, 2003 has clarified that Service Tax is destination-based consumption tax and is not applicable on export of services; export of services would continue to remain tax free even after withdrawal of Notification No. 06/99 dated 09.04.1999. This Bench’s decision in the case of MAPAL INDIA PVT. LTD. VERSUS COMMISSIONER OF C. EX., BANGALORE [2010 (8) TMI 622 - CESTAT, BANGALORE] and other cases cited by the appellants, hold that the services such as rendered by the appellants to their foreign principal fall under Export of Service Rules and are eligible for exemption in terms of Notifications, Export of Service Rules and the Circulars issued by CBEC from time to time for the entire period i.e. 01.07.2003 to 19.11.2003, 15.03.2005 to 30.09.2007 and 01.10.2007 to 30.09.2008 - Therefore, the issue is no longer res integra and the appellants are not liable to pay Service Tax during the said period under the heading ‘Business Auxiliary Service’. Maintenance or Repair Services - period 01.10.2007 to 30.09.2008 - penalties - HELD THAT:- The Learned Counsel for the appellants fairly conceded the applicability of such tax. Therefore, there are no reasons to discuss the applicability of the same - However, as requested by the appellants, looking into the facts and the circumstances of the case, the penalties are set aside. Appeal allowed in part.
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