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2019 (10) TMI 1107 - AT - Service TaxExemption from service tax - Business auxiliary services - export of services or not - Ld. Commissioner held that since the services were not delivered outside India, the conditions laid down in the Export Rules were allegedly not satisfied - HELD THAT:- The Ld. Commissioner in his impugned order has accepted that the services provided by the assessee have been used outside India and that the payment for the said services have been received in convertible foreign exchange. He has however observed that since the products of the Foreign Company have been marketed or sold to customers in India, the services are not delivered outside India. The identical issue has been dealt by the Tribunal in M/S AIRBUS GROUP INDIA PVT. LTD. VERSUS CST, DELHI [2016 (7) TMI 1209 - CESTAT NEW DELHI] for the period 2006 to 2011 wherein it has been held that the services provided by assessee would qualify as export of service even if the activities were undertaken in the Indian soil upon the instructions of service recipient located outside India. There is force in the submission of the Ld. Counsels for the assessee regarding the fact that the sale of the products and services manufactured or provided by the Foreign Company have been made by the assessee to the Indian customer / client is completely immaterial inasmuch as the assessee has provided the services at the behest of service recipient located outside India - thus, the subject services are to be held to be used outside India as well as delivered outside India and therefore, constitutes export of service on which no service tax stands payable. The impugned demand of service tax is set aside - appeal allowed - decided in favor of assessee.
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