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TMI Blog2019 (2) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... ice for the Business Auxiliary Services provided, does not fulfil the requirement of Rule 4A of the Service Tax Rules. It is also alleged that the appellant does not fulfil the requirement of Export of Service Rules, 2005 and other law applicable. The show cause notice was adjudicated on contest vide order in original 11th Feb. 2011, the rebate claim made by the appellant for Rs. 2,54,17,746/- for the period April 2006 to Dec. 2006 was rejected by the Assistant Commissioner holding that in absence of relevant documents, which may prove that the appellant had exported Business Auxiliary Services and the benefit of the same have accrued outside India. Accordingly, the claim is rejected under Notification No. 11/2005-ST. 3. Being aggrieved, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Singapore and have paid service tax on the basis of cost incurred plus mark-up on which they are paying service tax. Accordingly, it appeared to the ld. Commissioner (Appeals) that the appellant have rendered services in India and no portion of this service has been exported outside India, and BG India does not have any authority to conclude contracts with the customers/supplier or seek order on their behalf. 4. Ld. Counsel for the appellant states that so far Business Auxiliary Service are concerned, Board have issued Circular No. 111/05/2009-ST dated 24th Feb. 2009, in respect to applicability of provisions of Export of Service Rules, 2005 in situations like that of the appellant wherein in para 2(iii) and para 3, it have been clarified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minar for an Indian company in U.K. the service has to be treated to have been used outside India because the place of performance is U.K. even though the benefit of such a seminar may flow back to the employees serving the company in India. For the services that fall under Category III [Rule 3(1)(iii)], the relevant factor is the location of the service receiver and not the place of performance. In this context, the phrase 'used outside India' is to be interpreted to mean that the benefit of the service should accrue outside India. Thus, for Category III services [Rule 3(1)(iii)], it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsonnel of the principal located in India, sharing resources and facility with the BG Group affiliates operations and projects in India. 7. Having considered the rival contentions, we are satisfied that under the facts and circumstances as per the requirement of Export of Service Rules, 2005 read with the explanatory Circular No. 111/05/2004 -ST, as the services provided by the appellant are in the nature of Business Auxiliary Service, the export of services is complete as the principal is located outside India with whom there is contract of service and such principal have paid for such services to the appellant in convertible foreign exchange, which is not disputed. So far as the clause "used outside India" is concerned, the said clause i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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