TMI Blog2010 (5) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... activity only for the purpose of export - They were expected to get themselves registered with the department inasmuch as it is not their case that, they were committed to the above activity only for the purpose of export. Prima facie, till August, 2003, the appellant suppressed material facts before the department and, therefore, the larger period of limitation was invoked rightly for demand of Service tax on 'Market Research Services' from the appellant - Decided in favour of the assessee - ST/99/2009 - S/130/2010-WZB/C-II/CSTB - Dated:- 18-5-2010 - S/Shri P.G. Chacko, S.K. Gaule, JJ. REPRESENTED BY : S/Shri V. Sridharan alongwith Bharat Raichandani, Advocates, for the Appellant. Shri W.L. Hangshing, Jt. CDR, for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the services rendered to the latter. The expenses incurred by these commission agents were also reimbursed by the appellant. All the outward remittances by the appellant to WNS North America and WNSU.K.were in foreign exchange. Inward remittance by the overseas clients to the appellant through the commission agents were also in foreign exchange. The appellant was not registered with the department as a provider of Market Research Services during the period of dispute, nor were they registered as a provider of Business Auxiliary Services for the period from 1-7-03, the date on which these services became taxable. Officers of the department visited their premises in July, 2003 and queried them on the nature of their activities. As requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of services at all. Ld. Counsel has referred to the Finance Minister s Budget Speech 2003-04, wherein, the Hon ble Minister stated, inter alia, thus whatever service is exported abroad. Whether it be through outsource computer or medical, it will, by law, be outside the proposed code of service tax . He has also referred to international VAT/GST guidelines issued in February, 2006 by the Organisation for Economic Co-operation and Development (OECD). Ld. Counsel has also referred to a circular of the Board No. 56/5/2003-ST dated25-4-03. Relying on these materials, it is submitted that Service Tax is a destination-based consumption tax and therefore, it can be levied only where the consumer is withinIndia. It is submitted that, where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri R.S. Shetty, Vice President (Finance) of the appellant-company. It is submitted that Shri Shetty, in those statements, categorically denied that any amount was repatriated by the appellant. For this reason also, according to the ld. counsel, the proviso to the Notification No. 21/03-S.T. or of its predecessor Notification was not liable to be invoked against the appellant. 5. The ld. counsel has also pleaded time-bar against the demand of Service tax. It is submitted that all the material information had been supplied to the department by the appellant in their letter dated 22-8-03 and, therefore, the extended period of limitation could not be invoked for recovery of Service tax on Business Auxiliary Services from July, 2003. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enture Ltd. v. Commissioner of Customs (Gen.) Mumbai [2009-TIOL-09-SC-CUS = 2009 (234) E.L.T. 389 (S.C.)]. He has also contested the plea of time-bar. With particular reference to Market Research Services the ld. JCDR has invited our attention to para 4.4.4 and para 4.11 of the impugned order. It is submitted that the services rendered by the appellant by way of analysis of market survey reports, which were received from abroad, were certainly services rendered in relation to the Market Research Services in any manner and hence Service tax was leviable thereon under Sec. 65(105)(y) of the Finance Act, 1994. 7. We have given careful consideration to the submissions. We find that, in so far as Business Auxiliary Services rendered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it appears, this activity amounts to rendition of Market Research Services inasmuch as it was undertaken in relation to market research. Sec. 65(105)(y) provides that services rendered in any manner in relation to market research would be taxable under this category. We have not found a formidable challenge, at this stage, against the demand of Service tax on Market Research Services . We are not impressed with the plea of time-bar in this connection either. These services became taxable well before the commencement of the period of dispute. During those days also, the appellant was undertaking the above activity. They were expected to get themselves registered with the department inasmuch as it is not their case that, they were committed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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