TMI Blog2013 (11) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... services as alleged in the show cause notices and as concluded in the impugned order. The data furnished by the appellant is used by the foreign entity for inclusion in their products for dissemination to the customers situated world wide - appellant has received consideration for the services rendered in convertible foreign exchange. ‘Business Support Services' merit classification under Rule 3(1)(iii) of the Export of Service Rules and if the services were rendered from India and consideration is received in convertible foreign exchange, then the transaction would amount to exports. In the present case, there is no dispute that the appellant has rendered the services from India and the appellant has received the consideration in convertib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reuter's services in India. The department was of the view that the services rendered in the form of maintenance of communication lines was classifiable as Maintenance or Repair Services' as defined in Section 65(64) of the Finance Act, 1994 (Act in short) read with Section 65(105)(zzg). It was further observed that the appellant had received marketing fees' from Reuters Transmission Services Ltd., U.K., for providing marketing and other support services in relation to Reuters' products distributed by the appellant in India and the said activity appeared to merit classification under Business Auxiliary Services' vide Section 65(19) read with Section 65(105)(zzb) of the said Finance Act. Accordingly, four show cause notices dated 23/10/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' is patently incorrect. 3.2 It is further contended that Business Support Service' became taxable only from 01/05/2006 and under the Export of Service Rules, 2005, the same was falling under category 3. Since for the services rendered, the appellant had received the consideration in convertible foreign exchange, the services rendered by the appellant to the foreign entity will qualify as exports and hence not liable to service tax. Reliance is placed on the decision of the Tribunal in the case of Paul Merchants Ltd. vs. Commissioner of Central Excise, Chandigarh. The adjudicating authority has held that during the impugned period the appellant had declared dividends which had been repatriated abroad and, therefore, the appellant is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for putting the appellant terms. 5. We have carefully considered the submissions made by both the sides. We have also perused the agreement entered into by the appellants with Reuters Ltd. U.K. As per the agreement Reuters Limited, U.K. are engaged in producing news and financial information and related products compiled by the Reuters Group situated all over the world and the appellant, the Indian entity, is required to collect and provide data for inclusion in the Reuters products. For the services rendered, Reuters Ltd., UK, has agreed to compensate the appellant for performing such activities and for the related financial risks. As regards the editorial services' the appellant is required to collect from all sources including but not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Support Services'. 5.1 It is also a fact that the appellant has received consideration for the services rendered in convertible foreign exchange. Business Support Services' merit classification under Rule 3(1)(iii) of the Export of Service Rules and if the services were rendered from India and consideration is received in convertible foreign exchange, then the transaction would amount to exports. In the present case, there is no dispute that the appellant has rendered the services from India and the appellant has received the consideration in convertible foreign exchange. In view of the above factual position, the services rendered by the appellant would merit classification as export of services' from India. On export of services, se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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