TMI Blog2018 (9) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... 4th February, 2009 has issued a clarificatory Circular No.111/ 2009, clarifying that in respect of services following under category/ clause (c) above i.e. Rule 3(I)(iii) of the Export of Services Rules 2005, the relevant factor is the location of the Services recipient and not the place of performance. It also clarified that the phrase used 'outside India', is to mean that the benefits of the service is to accrue outside India. This Circular which is binding on the Revenue, also concludes the issue in favour of the Respondent. Appeal dismissed. - Central Excise Appeal No. 96 of 2017 - - - Dated:- 4-9-2018 - M.S. SANKLECHA RIYAZ I. CHAGLA, JJ. Mr. Pradeep S. Jetly with Mr. J. B. Mishra, for the Appellant. P.C: This App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services are performed by the Respondent to a recipient abroad. Thus, would be covered by Export of Services Rules, 2005. It followed the decision of its Coordinate Bench in the case of Nipuna Services Ltd., v/s. CCE Hyderabad 14 STR 906 (Bangalore). 6. Mr. Jetly, learned Counsel for the Revenue submits that all the services by the Respondent are performed in India in respect of investment in India. Therefore, the custodial services rendered by the Respondent would not be an export of services covered by the Export of Services Rules, 2005. 7. For the proper appreciation of the controversy, we reproduce Rule 3 of the Export Service Rules, 2005 as existing at the relevant time, which reads as under: 3. Export of taxable ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such services is made from any of his commercial establishment or office located outside India. (2) The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely: (a) such services is delivered outside India and used outside India; and (b) payment for such service provided outside India is received by the service provider in convertible foreign exchange. Explanation For the purposes of this rule India includes the designated areas in the Continental Shelf and Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to business or commerce to a recipient located outside India. The custodial services provided, would be clearly covered by sub-clause (iii) of Rule 3 of the Export Services Rules, 2005 and the Respondent would be entitled to its benefit. 10. In fact, the Central Board of Excise Customs has on 24th February, 2009 has issued a clarificatory Circular No.111/ 2009, clarifying that in respect of services following under category/ clause (c) above i.e. Rule 3(I)(iii) of the Export of Services Rules 2005, the relevant factor is the location of the Services recipient and not the place of performance. It also clarified that the phrase used 'outside India', is to mean that the benefits of the service is to accrue outside India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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