TMI Blog2017 (9) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... ient, will necessarily be in Indian rupees. It is apparent that no foreign exchange amount can be credited in bank located in India. The transactions are in Indian rupees - In Sun Area Real Estate Pvt. Ltd. [2015 (5) TMI 885 - CESTAT MUMBAI], it was held that the FIRC issued certifying that the payment not received in non-convertible rupees establishes payment in foreign exchange. Such payment in rupees is equal to foreign exchange - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.55999/2013-CU(DB) - ST/A/55459/2017-CU[DB] - Dated:- 24-7-2017 - Shri S.K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Rep by Shri Narendra Singhvi, Advocate for the appellant. Rep. by Shri Amresh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions for the Business Auxiliary Services to qualify for export of service (a) The consumption of such service should be outside India and (b) payment for such services is to be received by the appellant in India, in convertible foreign exchange. It is submitted that the dispute in the present case is relating to the question of receipt of payment in converting foreign exchange. 3. Ld. Counsel submitted that the payment for the services have been made in conformity with the statutory provisions of Foreign Exchange Management Act, 1999 and Foreign Exchange Management (Manner of Receipt and Payment) Regulations 2000. He made specific reference to Regulations 3 and 4 (2), to submit that the payment has been made in foreign exchange but c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign Inward Remittance issued by the Bank of Tokyo Mitsubishi UFJ Ltd., New Delhi. The said certificate states that the specified amount has been remitted by Mitsubishi Heavy Industries Ltd., Tokyo by remitting Bank in Tokyo-Mitsubishi UFJ, Global Service Banking Division Tokyo, Japan. The purpose of remittance has been shown as service fee, with a reference number. It is certified that the payment has not been received in non-convertible rupees or under any other special trade or payment agreement . The payment is in terms of re-imbursement in an approved manner. 8. A reference to Regulation 4(2) of Foreign Exchange Regulation 2000 will show that a person shall be deemed to have repatriated the realized foreign exchange to India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovider in convertible foreign exchange. The manner of such payment to be received and how convertible foreign exchange is dealt with for cross boarder transactions, is wholly regulated by the RBI. 10. It is relevant to note that when a service is provided to a person located abroad and the conditions is payment of consideration in convertible foreign exchange, the same shall stands satisfied, if the recipient of service transfers the money from his account which is in convertible foreign currency and remitted to Indian provider of service. The credit to account of Indian recipient of money at the bank of Indian recipient, will necessarily be in Indian rupees. It is apparent that no foreign exchange amount can be credited in bank located ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward remittance through the banking channels because of that very non-convertibility. Consequently, there is no justification for entertaining any doubt that inward remittances were in convertible foreign currency. 11. In Sun Area Real Estate Pvt. Ltd. 2015 (39) STR 897 (Tribunal-Mum), it was held that the FIRC issued certifying that the payment not received in non-convertible rupees establishes payment in foreign exchange. Such payment in rupees is equal to foreign exchange. The Tribunal referred to Notification dated 3.5.2000 of the RBI and Regulation 3 of Foreign Exchange Regulation 2000. 12. In view of the discussions and analysis on legal and factual issues, as above, we find no merit in the impugned order. Accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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