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2023 (8) TMI 1366 - CESTAT DELHILevy of Service Tax - commission agent of foreign parties to enable them to sell their goods to Indian customers/clients - HELD THAT:- This issue was examined at length by a Larger Bench of the Tribunal in M/S. ARCELOR MITTAL STAINLESS (I) P. LTD (NOW KNOWN AS M/S. ARCELOR MITTAL DISTRIBUTION SOLUTIONS INDIA PRIVATE LIMITED) VERSUS COMMISSIONER SERVICE TAX MUMBAI-II [2023 (8) TMI 107 - CESTAT MUMBAI]. After examination of the relevant provisions of the Export of Service Rules, 2005, and the Circular dated February 02, 2009 issued by the Central Board of Excise and Customs, the Larger Bench held It was the consistent view of the High Courts and the Tribunal that export of service would take place under rule 3(1)(iii) of the 2005 Export Rules if a person residing in India provides a service to a foreign entity to enable it to book orders for customers in India. This is for the reason that the foreign entity is located outside India and the payment is received by the person residing in India in convertible foreign exchange. The Larger Bench of the Tribunal held that where the Indian entity helps the foreign entity to sell its goods to the Indian customer and for this service receives remuneration in convertible foreign exchange, the Indian entity would be providing BAS to the foreign entity which would be the service recipient. This service would fall in the category of ‘export of service’ as contemplated under rule 3 of the 2005 Export Rules and would, therefore, be exempted from payment of service tax. Impugned Order set aside - appeal allowed.
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