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2022 (10) TMI 9 - AT - Service TaxTaxability - amounts expended for meeting operational costs of overseas offices - payments received for arranging and operating of ‘outbound tour’ services - period up to March 2012 - scope of the expanded definition of section 65(115) of Finance Act, 1994 - HELD THAT:- The change in the statutory provision has added elements to the activity that makes for being ‘tour operator’ and, in both the unamended and amended version, entirety of performance in India is the criterion for subjecting the consideration to tax. That is the only conclusion that can be arrived at from perusal of Export of Service Rules, 2005 which categorizes the scheme of export in terms of the enumeration of ‘taxable service’ in section 65(105) of Finance Act, 1994. Insofar as service taxable under section 65(105)(n) of Finance Act, 1994 is concerned, it did not appear to have dawned on the adjudicating authority that Export of Service Rules, 2005 does not base the exemption on place of the customer. The assumption that payment, if any, was received in local currency from Indian tourists is also not evidenced by any details in the show cause notice or subsequent ascertainment in the impugned order which has, but for the tabular presentation of taxable value/tax and the final confirmation of demand, not referred to the service rendered or disaggregation of value of services ineligible to be considered as exports. Appeal allowed - decided in favor of assessee.
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