Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 58 - AT - Service TaxExport of service - reverse charge - Business Auxiliary Service - Whether Business Auxilliary Services (BAS) rendered by the assessee to their foreign client qualifies as export of service? - Held that: - the subject matter is covered by the Tribunal”s decisions in the cases of M/s. Gap International Sourcing (India) Pvt. Ltd. vs. CST [2014 (3) TMI 696 - CESTAT NEW DELHI], where it was held that these services have to be treated as delivered outside India and used outside India and since payment for the service has been received in convertible foreign exchange, the same would have to be treated as exported out of India - appeal allowed. Whether hiring-out industrial endoscopes would qualify as “supply of tangible goods for use service” or not? - Held that: - CBEC Circular No. 334/1/2008 TRU dated 29.02.2008 clarifies that wherever supply of tangible goods for use involves transfer of both possession and control it is deemed sale leviable to VAT /Sales Tax, then the said activity would not be liable to service tax under “supply of tangible goods for use service”. The circular mentions, that if the item/ instrument has been supplied for use but without any legal right of its possession and effective control, then the use of the item is to be treated as “service” and not the “sale” and in that case service tax will be liable to be paid under the category of “supply of tangible goods for use service” - the subject transactions are to be verified by the original authority, whom we are remanding this matter, then only it can be determined whether there is a “service” or a “sale”. Appeal allowed - part matter decided in favor of assessee and part matter on remand.
|