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2017 (11) TMI 543 - AT - Service TaxBusiness Auxiliary Service - Commercial Training or Coaching Centre Service - demand on the ground that Business Auxiliary service was received by Bentley, Australia for its business in India and also used/ utilised in India - Held that: - with regard to categorization of service for the purpose of consideration as export, under Export of Service Rules 2005, the CBEC vide Circular dated 24.02.2009 has clarified that for category III services, falling under Rule 3(1)(iii) ibid, even if the relevant activities taken place in India, the said service should be considered as export, so long as the benefit of those services accrued outside India - In the present case, since the appellant had provided the services to M/s.Bentley, Australia, such service should be construed as export, in view of the clarification furnished by the CBEC - demand set aside. Commercial Training or Coaching Service - demand on the ground that the same was provided by the appellant for imparting skill and knowledge and also the services do not fall under the exclusion part of such definition - Held that: - It is an admitted fact on record that the appellant is an Information Technology Company, engaged in providing IT Services. The software provided by the appellant cannot be used by the customers /clients, unless their employees are properly trained to use such software. Thus, in such an eventuality, providing of assistance/training to the customer/client of the software would be construed as incidental and ancillary to the sale of software. Thus, providing such training will not fall under the purview of Commercial Training or Coaching Centre Service - demand set aside. Appeal allowed - decided in favor of appellant.
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