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2018 (4) TMI 914 - AT - Service TaxBusiness Auxiliary services - Service of ‘commercial advisor’ for the purpose of the sales promotion and marketing of goods produced by the said foreign firm in India - export of service or not? - Held that: - in the present case the appellant is acting as commission agent of M/s. Aashmore Pvt Ltd, a foreign company who is the recipient of the service - the Board has also clarified by its Circular dated 24.02.2009 regarding the services used outside India. When the services provided in India and used outside India and payment of such services received by the service provider in convertible foreign exchange then it will be treated as Export of Services under Rules, 2005. The decision in the case of M/s Sumitomo Corporation India Pvt. Ltd. Versus CST, Delhi (Vice-Versa) [2017 (3) TMI 1366 - CESTAT NEW DELHI] covers the issue, where it was held that the services have been provided to foreign entities as per the agreement entered into and the beneficiary is such foreign entities. The amount as consideration for such services was also paid by the said foreign entities in convertible foreign exchange. Therefore, the services rendered by the appellants are squarely covered by the Export of Service Rules and there is no service tax liability on them. Appeal allowed - decided in favor of appellant.
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