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2022 (5) TMI 1396 - AT - Service TaxRefund of service tax aid on input services - export of taxable output services - Whether the Onsite services provided by subsidiary or branch of the Appellant located outside India can be treated as “Export of Services" and turnover thereof can be included in the Export Turnover of the Appellant under Rule 5 of the CCR? - HELD THAT:- The subsidiaries/ branch offices did not raised any bill/ invoice on the recipient of the services or received any payments from them. All the services provided by the appellant to their overseas client have been provided under umbrella of a single contract. The subsidiaries/ branch offices of the appellants located overseas do not provide any service to the clients of the appellant independently. No such contractual agreement exists between the subsidiaries/ branch offices of the appellant with the service recipient. The subsidiaries/ branch offices provide the said services to the appellant and raise bill for the same on appellant for which the appellant are also discharging the service tax on reverse charge basis treating them as import of services. Thus these services are input services to the appellant for providing the services to their client overseas. Whether CENVAT credit has been correctly disallowed by the Ld. Respondent in respect of various input services procured domestically? - HELD THAT:- The case of revenue is that the Commissioner (Appeal) has erred while determining the “total turnover” by deducting the value of onsite services provided by the overseas subsidiaries / branches directly to their clients, which do not qualify as export of services from the value of total turnover. The stand is itself erroneous, the said services which were not provided by the appellants cannot be treated as part of “total turnover” of the Appellant and the hence the order of Commissioner (Appeal) cannot be faulted on this account. Appeal dismissed - decided against Revenue.
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