TMI Blog2014 (11) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ronically or otherwise and the consideration is paid on cost plus basis. Thus, the services rendered by the appellant does not seem to be of the nature of any management or repair 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 worldwide. In other words, the activity of the appellant supports the business undertaken by the foreign entity abroad. Thus, we find there is merit in the argument of the appellant that the activities undertaken by them, merits classification under ‘Business Support Services'. Appellant has rendered the services from India and the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieval Services'. During the course of audit of the records of the company, it was noticed that the appellant had received data and edit fees' in convertible foreign exchange from M/s. Reuters Ltd., U.K., a sister-concern. It was also noticed that the appellant had purchased equipment from Reuters Ltd., U.K. and maintained communication lines for providing 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 Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndered, Reuters Ltd., UK, compensated the appellant on a cost plus basis'. The service rendered by the appellant to their sister-concern is more appropriately classifiable under Business Support Services' as defined under Section 65(104c) of the Act and, therefore, the classification proposed in the impugned order under the category of Management, Maintenance or Repair Service' 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 appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of the adjudicating authority. He submits that the appellant has communicated data using the equipment and communication lines supplied by the foreign sister-concern and the appellant is bound to maintain these communication lines and undertake repairs whenever necessary. Therefore, the activity undertaken by the appellant would amount to maintenance or repair service as held in the impugned order. In view of the above he pleads 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 rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 worldwide. In other words, the activity of the appellant supports the business undertaken by the foreign entity abroad. Thus, we find there is merit in the argument of the appellant that the activities undertaken by them, merits classification under Business 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(i)(iii) of the Export of Service Rules and if the services were rendered from India and co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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