TMI Blog2017 (8) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... services accrued to the foreign clients outside India. This termed as 'export of service'. In these circumstances, 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 consideration by the Tribunal about service by the respondent-assessee to a foreign recipient being outside the purview of the collection of service tax, can seldom be flawed - as there is no case made out by the appellant, so also there is no question of law so stated to be involved in the matter - appeal dismissed - decided against appellant. - Central Excise Appeal No. 14 of 2016 - - - Dated:- 31-7-2017 - ANOOP V. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the parties, in our view, there is no case made out by the appellant to interfere with the impugned reasoning and the order: 8. We find from the records that the appellant does not engage himself in assembling and organizing of the imports. His duty as is ascertained from the agreement, indicates that he is supposed to procure the orders and pass it on to the overseas manufacturers; on receipt of such orders, the overseas manufacturers executes the same on his own and the consideration for such supplies is directly paid to the overseas manufacturers by the person who has placed the order. The entire transaction in our considered opinion seems to be of only procurement of orders and the rendering of services, if any, by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of export is not relevant inasmuch as the same deals with the export of goods and not export of services; (ii) That the Business Auxiliary Services provided by the assessee to their Singapore parent company was delivered outside India as such was used there and is covered by the provisions of Export of Services Rules and are not liable to Service Tax. (iii) The principal of equivalence between the taxation of goods and taxation of services, as laid down by the Hon'ble Supreme Court in the case of All India Federation of Tax Practitioners [2007 (7) STR 625 (SC) = 2002 TIOL 149 SCST as also the principles of destination based consumption tax where in the context of Constitutional Authority of levy of Service Tax on certain ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STC 1 SC] and Burmah Shell Oil Storage Distribution Co. of India v. Commercial Tax Officer Others reported in (1960) 11 STC 764 (SC) explain the meaning of the term export , the ratio of these judgments which are with regard to export of goods, is not applicable for determining what constitutes the export of services. There is no question of Export of Services Rules, 2005, being in conflict with Article 286(1)(b) of the Constitution of India. (ii) The principle of equivalence between the taxation of goods and taxation of service had been laid down by the Apex Court in the case of Association of Leasing Financial Service Companies v. Union of India (supra) and All India Federation of Tax Practitioners v. Union of India (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocurement of goods, recommending fabrics to be used for manufacture of garments, recommending vendors from which fabrics, yarn, zippers, buttons, snap fasteners, etc. can be procured, reporting the status of manufacture of products by the chosen vendors, analyzing the reports of the samples sent by the vendors, giving recommendation about the product integrity, inspecting export consignments and issuing inspection certificates, etc. Issue as to these were export of service or taxable in India; it was held that when the service provided by a person in India is consumed and used by a person abroad, coordinate Bench relied upon the judgment of the Paul Merchants Ltd. Case; interpreting provisions of export of service rules to hold such se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded within the country. It is this finding and conclusion of the Hon'ble Supreme Court which has been applied by the Tribunal in the facts and circumstances of the present case. 25. The view taken by the Tribunal therefore, cannot be said to be perverse or vitiated by an error of law apparent on the face of the record. If the emphasis is on consumption of service then, the order passed by the Tribunal does not raise any substantial question of law. 9. The Division Bench of this Court in Commissioner of Service Tax, Mumbai Vs. Maersk India Pvt. Ltd. 2015 (38) STR 1121 (Bom.) held that the observations reported in 2014 (34) S.T.R. 554 (Bom.) (supra) aptly apply in the present case. The situation shows that the conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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