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TMI Blog2010 (1) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax which was paid by the appellant as commission agent. The appellant had procured purchase orders in India for suppliers of goods located abroad and transmitted the same by courier or electronic means to the said suppliers. Acting upon those purchase orders, the suppliers exported the goods to the buyers in India and directly collected payments from them. Upon receipt of price of the goods, the suppliers paid commission to the appellant in convertible foreign exchange. Service tax was paid on these payments under Section 65(105)(zzb) of the Finance Act, 1994. Subsequently, the appellant claimed rebate of the service tax under Rule 5 of the Export of Services Rules, 2005. Rule 5 ibid allowed rebate of service tax paid on a taxable ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suppliers had been delivered outside India and used outside India. In the result, the claim for rebate of service tax was rejected. Refund of service tax to the extent of Rs.8,02,364/- stands denied to the appellant for the period from 19.4.2006 to 31.12.2006. 3. After hearing both sides, I find that the above denial of refund of service tax to the appellant under Rule 5 ibid is contrary to the express provisions of law as clarified in CBEC circular No.111/5/2009-ST dated 24.2.2009. The Board, in respect of business auxiliary services falling under Rule 3(1)(iii) of the Export of Services Rules, 2005, clarified thus: "The phrase 'used outside India' is to be interpreted to mean that the benefit of the service should accrue outside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders canvassed by the appellant in India were received by the foreign companies. These purchase orders were, admittedly, received abroad. They were also, admittedly, acted upon by the foreign companies abroad. In other words, the benefit of the service provided by the appellant accrued to the foreign companies outside India. The condition in question stood fulfilled by the appellant. The contrary view taken by the lower authorities cannot be sustained. A line of decisions cited by the learned counsel squarely supports the case of the appellant. These are Blue Star Ltd. vs. CCE, Bangalore 2008 (11) STR 23 (Tri.-Bang.), ABS India Ltd. vs. CST, Bangalore 2009 (13) STR 65 (Tri.-Bang.) and CST, Ahmedabad vs. B.A. Research India Ltd. 2009-TIOL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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