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2018 (12) TMI 947 - AT - Service TaxImport of services - Clearing and Forwarding Services (C&F services) - services performed outside India - Rule 3(ii) of the Taxation of Services (provide from outside India and received in India) Rules, 2006 - Reverse charge mechanism - Held that:- There is no dispute that the service is provided outside the territory of India, but the Revenue wants to tax the assessee since it collects sale proceeds in India. But the legislature in its wisdom, has framed Rule 3(ii) to encourage exports and in turn foreign exchange remittances - the activity of the appellant being wholly performed outside India, is excluded from service tax liability as per Rule 3(ii) of the Taxation of Services (provided from outside India and received in India) Rules, 2006. On an identical set of facts this very Bench of the Tribunal in the case of M/s. Bnazrum Agro Export Pvt. Ltd. [2018 (4) TMI 1239 - CESTAT CHENNAI] has held that such activity would not be exigible to service tax by virtue of Rule 3(ii) of the Rules. Appeal allowed - decided in favor of appellant.
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