TMI Blog2018 (7) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... es provided by appellant to STAR L will have to be treated as ‘Export of Service’ and hence there would be no tax liability on the same - demand set aside. CENVAT Credit - Mediclaim and Accident Insurance Policy - denial on account of nexus - Held that:- he issue is amply covered by the Tribunal decision in CCE Bangalore-III Vs Stanzen Toyotetsu India (P) Ltd. [2011 (4) TMI 201 - KARNATAKA HIGH COURT] where the Hon’ble Karnataka High Court, inter alia held that credit on Group Insurance Policy taken by assessee has to be construed as activities relating to business and hence credit is to that extent is permissible - credit allowed. Appeal allowed in toto. - Appeal No. ST/622/2011 - Final Order No. 41947 / 2018 - Dated:- 4-7-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant in this regard culminated in the impugned order dt. 29.08.2011 where the adjudicating authority confirmed demand of ₹ 30,28,493/- with interest thereon under Business Auxiliary Service‛, ordered recovery of an amount ₹ 99,979/- with interest found by him as ineligible credit taken. Penalty of ₹ 99,979/- was imposed on the appellant under Rule 15 (4) of the Cenvat Credit Rules, 2004 (CCR) read with Section 78 ibid. Hence appellants are before this forum. 2. Today when the matter came up for hearing, on behalf of the appellant, Ld. Counsel Shri Raghavan Ramabhadran made the oral and written submissions which can be broadly summarized as under : i) The appellant have been discharging service tax liability u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27.02.2010 to point out that not only was the payment of such services was required to be received by the service provider in convertible foreign exchange but also, such services should be provided from India and used outside India. In the instant case, although the other conditions are satisfied, the services are provided and used inside India only and hence the service rendered by the appellants cannot be treated as an export of service . He also submits that the adjudicating authority has correctly placed reliance on the Board s circular No.111/5/2009-ST dt. 24.2.2009 and 141/10/2011-TRU dt. 13.5.2011. the argument of the appellant that since they have paid service tax in respect of Broadcasting Service they are not required to dischar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services Rules, 2005 has been determined to have been received outside India i.e. consumed outside India, the conditions in Rule 3(2) regarding their delivery outside India and use outside India are automatically satisfied as, as explained in para 8.1 above, in the context of services, the receipt, consumption and delivery of the service is the same. Therefore the condition regarding delivery of service being outside India and use of service being outside India prescribed in Rule 3(2) of Export of Services Rules, 2005 were superfluous and for this reason only, these conditions were deleted first, the condition regarding delivery of service being outside India was deleted w.e.f. 1-3-2007 and thereafter the condition regarding use of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision in the above case is reproduced as under : 8.Pursuant to number of disputes that had arisen on the condition used outside India , the C.B.E. C. had found it necessary to issue a Circular [No.] 111/05/2009-S.T., dated 24-2-2009. The C.B.E. C. has advised in para-3 of the circular, that the law has to be read harmoniously so as to avoid contradictions within a legislation and accordingly, the meaning of the terms used outside India has to be understood in the context of the characteristics of a particular category of service as mentioned in sub-rule (1) of Rule 3 of the Export of Services Rules, 2005. The circular further gives an example of category of three services [Rule 3(1)(iii)] where it is possible that services may ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
