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TMI Blog2018 (6) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... dered 'Consulting Engineer Services' to its parent company M/s Holtec International, USA. They filed refund claims under Rule 5 of CCR, 2004 readwith Rule 6A of the Service Tax rules, 1994 in terms of Notification No. 27/2012 CE (NT) dt. 18.06.2012 towards Cenvat Credit paid on input services used in providing output services. The refund claim was objected by the refund sanctioning authority on the ground that since M/s Holtech International has taken registration on 02/07/2015 at Wakad, Pune, hence as per definition of service recipient in Rule 2 (i) of PPS Rules, the location of service recipient is premises for which such registration has been obtained i.e India. As both service provider and service recipient are located in India as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. 2. Shri Prasad Paranjape, Ld. Counsel for the Appellant submits that they are providing engineering, design and drawing services to their parent company i.e. Holtec International, USA and receiving the consideration in foreign exchange therefore their service qualify as export and are entitled for refund. He submits that as per the law settled in case of Paul Merchant Ltd. (2013 (36) STR 257), Microsoft Corporation India Pvt. Ltd. (2014(36) STR 766), Verizon Communication India Pvt. Ltd. (2018 (8) STR GSTL 32) (Del), SGS India Pvt. Ltd. (2014(34) STR 554) (Bom.), the recipient of service is the person who has contracted to avail the services and who is obliged to make payment for the services. In the present case admittedly the person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994 an establishment of a person in the taxable territory and any of his other establishment in a nontaxable territory shall be treated as establishment of distinct person. The establishment of Holtec International in India and USA shall be treated as distinct persons. The Appellant did not provide any service in the project office in India which has been confirmed by an independent chartered Accountant's Certificate therefore denial of export status to the appellant on the basis of above contention is incorrect. He draws analogy with Section 66A of Finance act to submit that where the provider of service has his establishment in two countries, the country where the establishment of the service provider is directly concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gy Systems Ltd who had placed the purchase order dt. 15.10.2013 on Holtech International USA. Such company opened office at Pune had no connection with the services rendered by the Appellant. The instant refund claims were filed on account of services rendered outside India and the claim has been filed in terms of Rule 5 of Cenvat Credit Rules, 2004. In terms of provisions of Rule 6A (1) of the Service Tax Rules, 1994 the services are treated as export of service when : - (a) the provider of service is located in the taxable territory, (b) the recipient of service is located outside India, (c) the service is not a service specified in the section 66D of the Act, (d) the place of provision of the service is outside India, (e) the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation 3. - For the purposes of this Chapter,- (a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons; (b) an establishment of a person in the taxable territory and any of his other establishment in a non-taxable territory shall be treated as establishments of distinct persons. Explanation 4. - A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory; It is thus clear that the office of M/s Holtech International situated in USA is different establishment from its project office in India. In the present case it is the US establishment of M/s Hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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