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2014 (12) TMI 334 - AT - Service TaxDenial of refund claim - Business Auxiliary Service - Reverse charge mechanism - Assessee claims that payment of tax made twice - However, Revenue contends that service of the appellant does not fall under the Export of Service Rules, 2005 - Held that:- Activity of the appellant is that they are marketing the product of their foreign counterpart and for which they are receiving certain commission in India. It is also alleged that the said commission has been received by the appellant in Indian rupees therefore they have not complied with the conditions of Export of Service Rules, 2005. It is also alleged against the appellant that as the service has been consumed in India therefore this is not a case of export of services as per Export of Service Rules, 2005. In fact, in case of marketing of product of their foreign counterpart in India but the service of marketing of product a person who is located outside India has consumed the service outside India. In these circumstances, it is held that the case of the appellant qualified as export of service as per Rule 3 (3) (i) of the Export of Service Rules, 2005. The same view was taken by this Tribunal in Blue Star vs CCE in [2014 (12) TMI 25 - CESTAT MUMBAI] wherein the Tribunal has held in such a situation it is a case of export of service. Whether the payment received by the appellant in Indian currency can be termed as the remuneration received by the appellant qualify as per the Export of Service Rules, 2005 or not - Held that:- In fact the appellant has received the payment on behalf of their counterpart from the client of their foreign counterpart. The same issue is covered by the decision of this Tribunal in the case of National Engineering Industries Ltd vs CCE, Jaipur reported in [2011 (9) TMI 759 - CESTAT, NEW DELHI] wherein on the similar situation this Tribunal held that although payment has been received in Indian currency on behalf of the service recipient located in India from the service provider and in that case it was held that it is a case of export of service. Therefore, following decision in National Engineering Industries Ltd (supra) I hold that the appellant complied with the condition of the Export of Service Rules, 2005. Therefore the appellants are entitled for refund claim. - Decided in favour of assessee.
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