TMI Blog2017 (10) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... of their services accrued outside India i.e. to foreigners who intended to transfer their money from foreign countries to their beneficiaries in India by utilising the services of Western Financial Services Inc., USA - the Appellate Tribunal is justified in rejecting the Appeal of the Appellant and arrive at the finding that the services rendered by the Respondent would fall under the category of “Export of Service” and the Respondent is not liable to pay service tax on the same. Appeal dismissed - decided against Revenue. - Central Excise Appeal No. 40 of 2016 - - - Dated:- 28-8-2017 - Abhay S. Oka And Riyaz I. Chagla, JJ. Mr. M. Dwivedi, i/b Mr. Sham V. Walve, for the Appellant Mr. Jitendra Motwani, a/w Mr. Chirag Shetty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of Service Tax, New Delhi Commissionerate. The Assistant Commissioner, Division II, Service Tax 1 rejected the refund claim of the Respondent vide order in original dated 8 June 2010. The Respondent preferred an Appeal against the said order in original dated 8 June 2010 before the Commissioner (Appeals). The Commissioner (Appeals) vide order dated 28 March 2013 set aside the order in original dated 8 June 2010 and allowed the Appeal of the Respondent. The Appellant filed an Appeal before the Appellate Tribunal against the order dated 28 March 2013. The Appellate Tribunal rejected the Appeal of the Appellant and against which the Appellant has filed the present Appeal. 3. Shri. Dwivedi, the learned Counsel appearing for the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nc. (Western Union) and provides assistance for money transfer services in India to the Western Union. The customers situated outside India approach the Western Union or their authorised representative abroad who transfer money from foreign countries to their beneficiaries in India. The Appellants' Company provides the services of delivering such cash in India to the said beneficiaries and in turn they earn a commission for such services provided to the Western Union. The above commission is received by them from M/s. Western Financial Service Inc. (Western Union, USA) in convertible foreign currency. Therefore, though the Appellants' service i.e. delivering of cash in India to the beneficiaries of the foreign principals might appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of the service should accrue outside India. This would be the case even where all the relevant activities have taken place in India. The said decision although challenged, has not been set aside. Shri. Motwani has relied upon the judgment of Division Bench of this Court in Commissioner of Service Tax, Mumbai II Vs. SGS India Pvt.Ltd. 2014(34) S.T.R. 554 (Bom.), which is followed by another Division Bench judgment of this Court in Commissioner of Service Tax, Mumbai 1 Vs. Maersk India Pvt.Ltd. 2015(38) S.T.R. 1121 (Bom.) in support of his contention. 6. Having considered the arguments, we are of the view that the issue as to whether the services akin to that of the Respondent are to be treated as Export of Service as per provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se that the Tribunal holds that the benefit of the services accrued to the foreign clients outside India. This is 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 Tribunal relied upon the circulars issued and prior thereto the view taken by it in the case of KSH International Pvt.Ltd. Vs. 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 Hon'ble Supreme Court has taken the view that Service Tax is a value added t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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