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2015 (8) TMI 1246 - CESTAT NEW DELHI

2015 (8) TMI 1246 - CESTAT NEW DELHI - 2016 (41) S.T.R. 87 (Tri. - Del.) - Denial of refund claim - Export of service - Goods used in India - Erection, Commission & Installation and Business Auxillery Services - Held that:- On analyzation of the activity of the respondents it can be seen that the respondents procure orders from Indian customers for their holding Company in Japan. The products are then supplied to Indian customers as per these purchase orders - The respondents receive commission .....

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re ultimately used in India, cannot be a reason to hold that there was no export of the output service. In the present case, the effective use and enjoyment of the service of procuring purchase order is by the Company in Japan and therefore the only conclusion possible is that the services were exported. - Commissioner (Appeals) has rightly allowed the refund claim of the respondents - Decided against Revenue. - Appeal No. ST/54993/2014-ST(SM) - Final Order No.52063/2015 - Dated:- 1-7-2015 - Ms. .....

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n, Commission & Installation' and Business Auxillery Services with the service tax division. The activities of respondents are such that they procure purchase orders from Indian Customers and place it before their client/company in Japan. Goods as per these purchase orders are supplied to customers in India. For such service the respondents receive a pre determined percentage of the trade value as indent commission. Accordingly to respondents by providing such services to the Company in .....

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llowed the refund. Hence this appeal by Revenue. 3. On behalf of the appellant, the Learned DR submitted that though the respondents provided services from India to their client in Japan; the services being for procurement of orders from customers in India and also because the goods supplied are used by customers in India, there was no export of services. That this whole process would show that the service is provided from India and used in India, and that therefore the activity of the responden .....

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der Rule 3(2)(a) of Export Service Rules, 2005 are fully satisfied. According to him the services for which commission was received are utilized outside India though the products were utilized by customers in India. He relied upon the Circular No.111/05/2009-ST dated 24.02.2009 and also the decisions rendered in Blue Star Ltd. reported in 2008 (11) S.T.R. 23 (Tri.-Bang.), KSH International Pvt. Ltd. reported in 2010 (18) S.T.R. 404 (Tri.-Mumbai.) and ABS India Ltd. reported in 2009 (13) S.T.R. 6 .....

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ertible foreign exchange." 7. On analyzation of the activity of the respondents it can be seen that the respondents procure orders from Indian customers for their holding Company in Japan. The products are then supplied to Indian customers as per these purchase orders. The arguments advanced by the appellants are that the products are finally used in India and therefore there is no export of services as per Rule 3(2)(a) of the Export Service Rules, 2005. I cannot agree with the submission o .....

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(1) (iii)], the relevant factor is the location of the service receiver and not the place of performance. In this context, the phrase used outside India is to be interpreted to mean that the benefit of the service should accrue outside India. Thus, for Category III services [Rule 3(1)(iii)], it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. In all the illustrations mention .....

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