Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 168 - AT - Service TaxScope of Business Auxiliary Service - data processing activities - whether promotion or marketing of a service provided by the client; or any customer care service provided on behalf of the client, employing information technology service (including computer data processing) would fall outside the scope of BAS - Held that:- services provided by assessees to the overseas entities (Amadeus/Galileo) clearly amount to promotion or marketing of CRS services of the overseas entities (a BAS), but nevertheless falls outside the ambit of BAS as defined, since these services were provided by employing computer data processing, excluded component. Assessees promote/market CRS services provided by the overseas entities (Amadeus/Galileo) but do so through computer data processing, amounting to Information Technology Service, an excluded component of BAS, defined in Section 65(19) of the Act. - assessees promote/market CRS services provided by the overseas entities (Amadeus/Galileo) but do so through computer data processing, amounting to Information Technology Service, an excluded component of BAS, defined in Section 65(19) of the Act. Export of Services - whether services provided by assessees amount to export of services, within the ambit of the 2005 Rules - Held that:- where the service recipient is located outside India, this taxable service is delivered and used outside India; and payment for such service provided outside India is received by the Indian service provider in convertible foreign exchange, the service falls within the ambit of the 2005 Rules; and is admissible to benefits thereunder. The decision of the Larger Bench in Paul Merchants Ltd. (2012 (12) TMI 424 - CESTAT, DELHI (LB)), particularly in the context of the facts on the basis of which the said decision was pronounced, explain the scope of relevant provisions of the 2005 Rules. From the decisions referred to supra it is clear that activities of assessees fall within the scope of the 2005 Rules. Consequently, there is no liability to Service tax. From 01.07,2003 till introduction of the 2005 Rules also, BAS which was exported and for consideration received in convertible foreign exchange is exempted from liability to service tax by Notification No 6/1999-ST, Notification No. 21/2003-ST and in view of the clarification issued in Board Circular No. 56/5/2003-ST dated 25.04.2003. Extended period of limitation - Held that:- For dropping levy of service tax demand on services provided during the period covered by the extended period of limitation and for deleting penalty under Section 78, the adjudicating Authority recorded elaborate and cogent reasons duly analyzing the material on record and concluded that relevant information and particulars were furnished and was available with the Department much in advance and therefore suppression of material facts or intent to evade tax by the assessees, cannot be inferred. We concur with these conclusions recorded by the adjudicating Authority. - Decided in favour of assessee.
|