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2015 (8) TMI 1135 - AT - Service TaxWaiver of pre deposit - Manpower recruitment or supply agency service - Reverse charge of mechanism - Held that:- Payments made to local vendors for purchase of foreign currency to facilitate foreign stay of petitioner's employees abroad, on which the tax demand of ₹ 8,765/- is assessed is misconceived as purchase of foreign currency is neither a service nor a taxable service defined anywhere, in the provisions of the Act. Demand of ₹ 25,442/- is attributed as the tax liability on reverse charge mechanism for remittances made for training of petitioner's employees at foreign locations. It is not clear how services provided and consumed outside the Indian territory are taxable under the provisions of Act. In any event since the tax under the provisions of chapter V of the Finance Act, 1994 is a consumption and destination based tax and the levy of tax is confined to services consumed or provided within the Indian territory, we prima facie see no basis for this aspect of the levy. Regarding remaining demand, assessee produced some of the original challans only to the extent of ₹ 1,18,75,607/-, the balance due is ₹ 41,21,153/-. Since we find that demand to the extent of ₹ 34,207/- is attributable to service tax assessed on non taxable services, the balance liability of the petitioner works out to ₹ 40.87 lakhs. - Partial stay granted.
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