TMI Blog2016 (5) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is to an overseas manufacturer on whom Service Tax liability does not arise. The service rendered to such a person situated based at overseas Service Tax liability arises on him but under reverse charge mechanism appellant is made liable to pay, however in this services are consumed by a person not in India, no Service Tax liabilities arises on appellant is the law settled which is supported by judgement of Hon'ble Bombay High Court in the case of CST Vs. SGS India Pvt. Ltd. [2014 (5) TMI 105 - BOMBAY HIGH COURT]. Therefore, the impugned order is unsustainable and liable to be set aside. - Decided in favour of appellant - Appeal No. ST/69/12-Mum - Order No. A/86642/16/STB - Dated:- 3-3-2016 - SHRI M.V. RAVINDRAN, MEMBER (JUDICIAL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity order in case of Microsoft Corporation (I) (P) Ltd. - 2014 (36) STR 766 (Tri.- Del.) and M/s Mapal India Pvt. Ltd. - 2010-TIOL-1821-CESTAT-BANG has held that such an activity is not taxable under Business Auxiliary Services . He would also relied upon the judgement of Hon'ble Bombay High Court in the case of CST Vs. SGS India Pvt. Ltd. - 2014 (34) STR 554 (Bom.) which is more or less on the same issue. 4. Learned Departmental Representative reiterates the findings recorded by the adjudicating authority. 5. On careful consideration of the submissions made by both sides and perusal of the records, we find that there is no dispute that the appellant herein is engaged in the business of canvassing, promotes, markets, does after s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by us above, the payment was also made in terms aforesaid, then, the benefit of the notification at page 17 of the paper book was available. That was on the footing that the services rendered were exempt from whole of the liability to pay Service Tax. 22. The circular dated 25th April, 2003 (Annexure A2) is issued on the subject of non-levy of Service Tax on export of services. It has referred to earlier circular of 1st March, 2003 and 9th April, 1999. The 9th April, 1999 is a notification of exemption. The April 2003 circular clarifies that Service Tax would be levied on all taxable services consumed or rendered in India, irrespective whether the payment thereof is received in foreign exchange or not. Since representations were re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia to its foreign clients. Though the show cause notice refers to the circulars, what is apparent from the judgment of the Honble Supreme Court in the case of All India Federation of Tax Practitioners v. Union of India, 2007 (7) S.T.R. 625 that Service Tax is a tax on each activity. When it comes to a Service Tax on professions, the services rendered are of advise and hence, the Honble Supreme Court with regard to the nature of the tax concluded that it is rendered by a Chartered Accountant, for example when he advises his client or audits his account. Similarly, a cost accountant charges his client for advise as well as doing his work of costing. For each transaction or contract, Chartered Accountant/Cost Accountant renders professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal takes a view that if services were rendered to such foreign clients located abroad, then, the act can be termed as export of service . Such an act does not invite a Service Tax liability. The Tribunal relied upon the circulars issued and prior thereto the view taken by it in the case of KSH International Pvt. Ltd. v. Commissioner and B.A. Research India Ltd. The case of the present respondent was said to be covered by orders in these two cases. To our mind, once the Honble Supreme Court has taken the view that Service Tax is a value added tax which in turn is destination based consumption tax in the sense that it taxes non-commercial activities and is not a charge on the business, but on the consumer, then, it is leviable on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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