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2016 (8) TMI 720 - AT - Service TaxPromoting and marketing services for international airlines in India - Business Auxiliary services (BAS) - receipt of additional Overriding Commission (ORC) and target incentives - BTPL are engaged in the business of providing travel related services. - Extended period of limitation - Held that:- there is no ambiguity that legislature in terms of Export of Services Rules, 2005 intended that services consumed outside India shall be exported. It was further held that service that is sought to be taxed is the service provided to the person paying for the service and not the service which is provided to a person in India who is not paying for the service thought he may be beneficiary of such arrangement. Here, in the present case the admitted facts are that the business of foreign airlines are promoted by BTPL. If such airlines do not have any office / establishment in India and consideration is paid in convertible foreign currency we find BTPL are not liable to service tax under BAS as services are covered by export. The question involved is one of close interpretation of the legal provisions and there is nothing on record to show that there is a positive act of suppression or wilful mis-statement of any relevant facts by BTPL to enable the department to sustain the demand for longer period. We do not find any justifiable reason to interfere with the findings of the lower authority on the question of time bar. The tax liability, if any, is upheld only where the conditions are not fulfilled. - Decided in substantially in favor of assessee.
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