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2014 (7) TMI 708 - AT - Service TaxSanction of rebate of services tax - Export of services - Scientific and Technical Services - Revenue contends that Business Support Service and cannot be considered as Scientific or Technical Consultancy Services - and Revenue contends that GE ITC is extended arm of GE USA - Held that:- GE USA is incorporated under the laws of State of New York and GE ITC is a company incorporated under the Companies Act 1956. This itself shows that both are separate entities. No other evidence has been taken into account to show that GE ITC is an extended arm. Even if it is a subsidiary company, as submitted by the learned counsel, a subsidiary company is considered as a separate entity in the eyes of law. Therefore GE ITC is not an extended arm for GE USA. - Decided against Revenue. Classification of service - Business support service or Scientific and Technical Services - Held that:- appellants are providing a cluster of services and are receiving consideration in the form of cost plus 5% and therefore it has to be held that the service provided is Business Support Service cannot be upheld since for classification, the method by which consideration is determined cannot be the basis. The basis has to be the fact that the services provided should fit into the definition of the service under which it is supposed to be categorized - On the one hand it is appellants claim that they are providing only Scientific and Technical Analysis and specific evidence as regards why any activity of the appellant comes under Business Support Service by explaining the nature of the activity vis-`-vis the definition so pointed out to us. Therefore prima facie this view cannot be supported. Moreover as submitted by the learned counsel, subsequently Revenue itself has issued show-cause notice proposing classification of the services as Scientific and Technical Service. - Decided against Revenue. Non compliance of conditions laid down in Rule 3(2) of Export of Services Rules 2005 - Held that;- Following decision of Gap International Sourcing (India) Pvt. Ltd. and Paul Merchants Ltd. it cannot be sustained that conditions laid down in Rule 3(2) of Export of Services Rules 2005 are not satisfied - Decided in favor of assessee. Cenvat Credit - Nexus between input and output service - Held that:- this aspect was not considered by the lower authorities - though appeal is allowed on merit, matter remanded back to verify the nexus between input and output service and allow the refund claim within 3 months.
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