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2017 (9) TMI 895 - AT - Service TaxClassification of services - services rendered by the appellant with respect to foreign based clients - Business Auxiliary Service or otherwise? - Held that: - The Tribunal in the case of Fifth Avenue [2009 (3) TMI 133 - CESTAT, CHENNAI] examining the identical set of facts and held that these services cannot be considered as BAS and should be treated as BSS, brought under tax liability only with effect from 01.05.2006 - The services are availed and consumed by the foreign based client and the consideration has been paid by the said client in convertible foreign exchange. The inference of the original authority is that the LC margin retained by the appellant should be considered in respect of local vendors also, is not supported by facts or law. Services rendered to the local vendors - Held that: - It is not a simple commission agent work of promotion of the product of the vendor. Though they were registering with the department under BAS and paid service tax under such category with effect from 01.05.2006, tax liability paid after 01.05.2006 is rightly to be appropriated under BSS. This is not being contested. However, for the period prior to 01.05.2006 no tax liability will arise and same is not paid by them. The services rendered by the appellants are for tax liability under the category of BSS with effect from 01.05.2006. In so far as these services rendered for foreign based clients and consideration was received in convertible foreign exchange no tax liability will not arise considering the same as export. For import of services tax liability is confirmed for the period post 18.04.2006. Penalties are set aside. Appeal allowed - decided partly in favor of appellants.
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