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2023 (1) TMI 1142 - AT - Service TaxExport of service - Place of performance / supply of service - Classification of services - Video Production Agency service or not - scope of Video Production Agency and Video-Tape Production - Palace of performance services on Goods - HELD THAT:- The inclusive leg of the definition pertains to the post-recording activity on video or transfer to another media by provider of service to qualify as ‘video-tape production’; there is no evidence that the material received by the respondent was recorded in video or that the respondent had, at any time, handled video as media. The definition of an element contained in a particular ‘taxable service’ is not to be drawn upon, as a lexicon may be, for stretching of another service beyond legislatively intended limits. Even if it could, it would be a leap of faith by service tax authorities to conclude that visual dissemination is always of a ‘programme’ and, therefore, on ‘video’ as media. No evidence is forthcoming either that such is the case in the present factual matrix. Export of services - Place of Provision of Service - HELD THAT:- It appears that service tax authorities have not appreciated the purpose, elucidated supra, and the context of Place of Provision of Service Rules, 2012. These Rules do not operate as a charging provision within the narrow field of taxing imports or exempting exports; they are intended for taxing all manner of services within the frame of section 66B of Finance Act, 1994. The Hon’ble Supreme Court, in ALL INDIA FEDERATION OF TAX PRACTITIONERS & ORS VERSUS UNION OF INDIA & ORS [2007 (8) TMI 1 - SUPREME COURT] has held levy under Finance Act, 1994 to be ‘destination-based consumption tax’ and, therefore, requiring consummation of the service to be linked to acknowledgement by recipient of the service. Consequently, by default, rule 3 of Place of Provision of Service Rules, 2012, holds the service to have been rendered at the place of the recipient and other rules substitute in specific circumstances. The deviation in rule 4(a) of Place of Provision of Service Rules, 2012 and, considering the specific circumstance of determination by tangible presence, it would not be amenable to stretching for coverage of ‘deemed goods’, if any, owing to that limitation of pinpointing ‘service’ which is of essence in the said Rule. The impugned order is sustained to the extent of determination that the respondent herein has exported services in accordance with Export of Service Rules, 2005 and rule 6A of Service Tax Rules, 1994 for the relevant periods - Appeal of Revenue dismissed.
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