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TMI Blog2013 (12) TMI 1613X X X X Extracts X X X X X X X X Extracts X X X X ..... holding company. For this purpose, they maintain a call centre which is contacted by the customers who have purchased the equipment when they have a problem. Effort is made to sort out the problem by giving guidance on line and over telephone and when that fails, engineers are deputed to the site and when that also fails, the matter is referred to the principal company for further appropriate action. Taking a view that the work undertaken by the appellant amounts to management, maintenance and repair of the software supplied with equipment and the whole activity is performed in India for Indian customers who have received the equipment and the software from Verint, proceedings were initiated. As a result of the proceedings demand of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when we look at the definition of the "input service", it is a service provided by a person to another person. In this case as per the records, the service is provided by the appellant to their holding company in US. The invoice for the service rendered is raised on their principal. The payment for the service rendered is made by the principal company in US. Moreover when problem cannot be solved by the assessee, principal steps in, which shows that ultimate/basic responsibility of provision of service is of Verint. There is absolutely no nexus between the Indian customers and the appellants. As far as the customer in India is concerned, the responsibility for maintenance rests with the foreign company and whatever service is being rendere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll documentation purposes and for all record purposes and even for payment of consideration, the nexus is between the company in US and the appellant in India. Actually the Indian clients who received the service also make the payment to the company in US and that transaction would become an import of service. It can be said that the service provided by the appellant to the US company becomes an input service to US company (Verint) and service received by the Indian company from US would become an output and thereby becomes import of service. Prima facie we feel this is the situation that emerges from the facts of the case. Therefore, we consider that the appellants have made out a case on merits for complete waiver and accordingly requirem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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