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2013 (6) TMI 293 - AT - Service TaxService of repair and maintenance - According to the department, the appellant have received these services from the offshore service providers - demand of service tax - Held that:- The service of repair and maintenance has been performed wholly abroad and as such, there is no evidence adduced by the department to show that part of the maintenance and repair service had been performed in India. In view of this, so far as this service is concerned, the appellant cannot be said to have received this service in India in terms of the provisions of Rule 3(1) of Taxation of Service provided from outside and received in India Rules, 2006 and as such the service tax demand of ₹ 49.45 crores does not appear to be sustainable. Service of General Sales Agents - On perusal of the relevant clauses of the appellant's agreements with the GSAs appointed in various foreign territories for the services received by them it can be concluded that the services provided by the GSA to the appellant are covered by the definition of business auxiliary service as the GSAs appointed by the appellant not only represent the appellant abroad and provide various services on their behalf they also promote the sales of the services being provided by the appellant by undertaking various sales promotion activities. Since this service has been used by the appellant in India in relation to their business located, in India in terms of the provisions of Rule 3(1)(iii) of the Taxation of Services provided from outside India and received in India) Rules, 2006, this service has to be treated as having been provided from outside India and received in India by the appellant and, therefore, in terms of the provisions of Rule 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Taxation Rules, 1994, the appellant as service recipient would be liable to pay service tax on the same. Therefore, service tax demand of ₹ 15.53 crores is on strong footing. As the appellant have pleaded financial hardship stating that the appellant have on huge accumulated losses and are having difficulty in discharging their statutory functions appellant is directed to deposit an amount of ₹ 8 Crores within a period of 8 weeks from the date of this order.
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