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2023 (8) TMI 1148 - CESTAT CHANDIGARHLiability to pay tax - Import of services - reverse charge mechanism (RCM) - services of storage & warehouse provided by a person in abroad and warehouses are also situated outside the country but the actual benefit of such services have been received in India by the appellant - HELD THAT:- In this case storage and warehousing service has been received in USA (outside India), the service not being performed in India, it cannot be said that service has been received in India. Storage and Warehousing service under sub-clause (zza) of clause (105) of Section 65 of Finance Act, 1994 will only be taxable as import of service under Rule 3(ii) of taxation of services (Provided from outside India & received in India) Rules 2006 when such service has been performed in India. Whereas, in the present case, the service of storage and warehousing has been received outside India. Hence, it is not taxable service under Section 66A read with Rule 3(ii) of services (provided from outside India and received in India). The issue is also covered in favour of the appellant by the judgment of the CESTAT in the case of SUNDARAM CLAYTON LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI [2014 (6) TMI 30 - CESTAT CHENNAI] where it was held that Since the warehouses were hired in the USA beyond the jurisdiction of the Indian authorities, no Service Tax can be levied and collected on such services rendered and received abroad. The impugned order is not sustainable in law and the same is set aside - Appeal allowed.
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