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2017 (3) TMI 1366 - AT - Service TaxBusiness Auxiliary Services - liability of tax - export of service - Held that: - when the services were provided as per the instruction of a person located abroad, the destination of service has to be treated abroad. The destination has to be decided on the basis of place of consumption and not place of performance - the services have been provided to foreign entities as per the agreement entered into and the beneficiary is such foreign entities. The amount as consideration for such services was also paid by the said foreign entities in convertible foreign exchange. Therefore, the services rendered by the appellants are squarely covered by the Export of Service Rules and there is no service tax liability on them. Reversal of CENVAT credit - Rule 6(3A) of CCR - Held that: - the value of exempted service was arrived at by the Original Authority as difference between sale price and cost of goods sold or 10% of the cost of goods sold whichever is more - in the absence of any other statutory formula to arrive at the quantum of Cenvat credit to be reversed on common input services, we find no impropriatory in the decision of the Original Authority in this regard - Regarding the contention of the Revenue that the appellant/assessee should not be allowed to utilize more than 20% of the total duty liability we note that there is no legal backing for such assertion. Appeal allowed - decided in favor of assessee.
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