TMI Blog2007 (3) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner rejected the revenue contention - 206/2006 in ST/332/2006 - 251/2007 - Dated:- 2-3-2007 - [Order per: S.L. Peeran, Member (J)]. - The appellant is required to pre-deposit service tax of Rs. 2,97,10,762/- and penalty of Rs. 4,50,00,000/- under Section 78 of Finance Act, 1994, apart from penalty of Rs. 200/- everyday under Section 76 of the Act. The appellants are registered und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de India." The Commissioner has not referred to the proviso to the Rule 3. He has taken a view that the appellants were collecting fee from their clients in India. Therefore the services would be deemed to have been performed outside India. He relies on Board's Circular F. No. 341 /34/2005-TRU dated 3-10-2005. This Circular clarifies that where both the service provider and the service recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Service tax is destination based consumption tax and it is not applicable on export of services. It is stated that export of services would continue to remain tax free even after withdrawal of Notification No. 6/1999, dated 9-4-1999. It is further clarified that service consumed/provided in India in the manufacture of goods which are ultimately exported, no credit of service tax paid can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e", once the goods have been taken out of the country, the export would be deemed to have been taken place. There is no denial of facts and taken out of India after following the procedures. The proviso to Rule 3 itself clearly states that even if part of export is done outside India, then it shall be considered to have been performed outside India. The Board's Circular No. 56/5/2003-S.T., dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore the stay application is allowed by granting full waiver of pre-deposit of the amount and staying its recovery till the disposal of the appeal. As the revenue implication is more than Rs. 06 Crores, the appeal is listed for out of turn hearing on 30th April 2007. In the meanwhile, the Commissioner has to file para-wise comments on the 'Grounds of the Appeal' in the matter. (Pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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