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2014 (9) TMI 878 - AT - Service TaxExport of services - Receipt of commission in convertible foreign exchange from their principal - Revenue was of the view that since the dividends have been repatriated and since dividends arise out of the appellant company’s activities including exports, it would amount to repatriation of export proceeds - Benefit of Notification No. 6/99, dated 9-4-99 and 21/2003-S.T., dated 21-11-2003 - Held that:- Appellant has rendered the service of steamer agents and has earned income in convertible foreign exchange. Vide Notification Nos. 6/99-S.T. and 21/2003-S.T., Service Tax levy has been exempted if consideration for the services rendered is received in convertible foreign exchange subject to the condition that the export proceeds are not repatriated from India - On perusal of the balance-sheet of the appellant company, it is seen that appellant earns income not only from steamer agent’s services but also from various other services such as container freight, equipment maintenance and repair, service-centre income, detention/collection fees, crew fees and so on. They have also earned income by way of interest on loans/deposits and also rental income - After deducting the expenses from the income, profit is arrived at and dividend is declared out of profits. In other words, the dividend declared is not only from the income earned from steamer agent services rendered by the appellant and profits earned therefrom but from a lot of other activities. Therefore, it cannot be said that the export proceeds earned by the appellant have been repatriated by way of dividends to the equity holder - Decision in the caes of Gillette India Ltd [2011 (5) TMI 611 - CESTAT, NEW DELHI] followed - Decided in favour of assessee.
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