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2023 (10) TMI 998 - CESTAT CHANDIGARHExport of services or not - services rendered by the respondents are performed in India or not - providing Business Support Services and Manpower Recruitment and Supply Services to M/s SmithKline Beecham Plc. (SB Plc), U.K. as per an Agreement entered into between them - period January 2009 to September 2009 - demand of service tax alongwith interest and penalty - HELD THAT:- On the perusal of the Agreement, it appears that the respondents are rendering services with respect to clinical trials for the overseas company located in U.K. who undertake further research on the basis of the reports submitted by the respondent; therefore, it is not correct that the use of services is in India; it is evident that the services rendered by the respondents are used by the overseas company who are benefitted by the same. It cannot be said that service is not used outside India just because the payment is made to third-party i.e.M/s Glaxo SmithKline Services, Unlimited, UK. It has been clarified that the said third-party has been maintaining the accounts of M/s SB Plc, UK - It is found that as long as the service is enjoyed by the contracting party, routing of payment or consideration through a third-party does not alter the position. The services rendered by the respondents to M/s SB Plc, UK constitute export of service as the services are utilized by a company situated outside India and used outside India - the Department has not made out any case for intervening with the impugned order - Appeal of Revenue dismissed.
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