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2009 (5) TMI 73 - AT - Service TaxImport of Service – rule 3 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 - assessee claimed a refund on Rs. 55,702 on the ground that they were not liable to pay service tax on technical testing and analysis services received by them on which the liability falls on them as a receiver in view of the fact that the service was fully performed outside India. The refund claim has been rejected by the lower authorities and hence the appeal – held that - The objective of the proviso is to avoid litigation and valuation issues when a service is partly performed in India and outside India. When it is partly performed, full value is to be taken. Similarly if it is fully performed in India, there would be no dispute about the liability since the same would be on the full value of the service. When the service is fully provided outside India, this proviso is clearly not at all applicable - Where reverse charge mechanism is not applicable; the service tax would not be liable. – Refund allowed
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