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2023 (4) TMI 714 - AT - Service TaxLevy of Service Tax - clearing and forwarding services for the goods manufactured and exported - service tax paid for the period up to June 2008 - non-payment of service tax from July 2008, for the reason of exclusion in terms of Rule 3 of the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 - HELD THAT:- The services have been wholly performed outside India, which the Revenue wants to tax since the sale proceeds were being collected in India. It is in this context that Rule 3(ii) of the Rules ibid which is framed, comes to the rescue of an exporter who would earn in foreign exchange. The very same issue has been decided by this very Bench in the appellant’s own case M/S. SUNDARAM INDUSTRIES LTD. VERSUS THE COMMISSIONER OF G.S.T. & CENTRAL EXCISE, MADURAI COMMISSIONERATE [2018 (12) TMI 947 - CESTAT CHENNAI] 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. We find force in the contention of the Ld. Advocate that 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. The demand, as confirmed in the impugned Order-in-Appeal, cannot sustain, for which reason the same is set aside - Appeal allowed.
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