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2019 (9) TMI 749 - AT - Service TaxTaxability - reverse charge - reimbursement received toward the services of the Manpower and other Miscellaneous cost incurred on behalf of the Overseas Group Companies in connection with the supply of goods by Indian Companies to their group companies - HELD THAT:- As per the facts of the present case there is no dispute that the appellant have received the reimbursement towards salary and other miscellaneous expenses from their group companies located outside. This reimbursement was received in connection with some support service provided by the appellant, in connection with supply of goods by Indian supplier to their overseas group companies. In this transaction, it is the appellant who are providing the service to the overseas group companies. From the reading of Section 66A and Rule 2 (1) (d) (iv) of service tax Rules 1994, it is absolutely clear that the service tax liability under the above provision is only on the recipient of service in those cases when the Indian person is receiving the service from abroad and the service provider is not having any office in India - Since the appellant are not receiving any service, on the contrary, they are providing services to overseas group companies, the provision of Section 66A and Rule made there under is absolutely not applicable, therefore, the demand is also not maintainable. Demand not sustainable - appeal allowed - decided in favor of appellant.
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