TMI Blog2019 (9) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... SERVICE TAX, MUMBAI-I [ 2015 (5) TMI 885 - CESTAT MUMBAI] where it was held that FIRCs were issued and there is a specific certification that the payment has not been received in non-convertible rupees, which establishes that the payment received and mentioned in the FIRCs are other than non-convertible foreign exchange, in other words, the payment is in convertible foreign exchange. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.75608 of 2015 with 75609-75613 of 2015, 76404-76412 of 2016 - FINAL ORDER NO. 76532-76546/2019 - Dated:- 19-9-2019 - SHRI P.K.CHOUDHARY, MEMBER(JUDICIAL) Shri Vijay Chhangani, Chartered Accountant for the Appellant (s) Shri S.Mukhopadhyay, Authorized Representative for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [INR] can be considered as convertible Foreign exchange . 5. The Tribunal in the case of Sun Area Real Estate Pvt. Ltd. [Supra] observed as under: 5 . I have carefully considered the submissions made by both the sides. It is not in dispute that the remittance towards the payment of service was received in Indian rupees. However, though the payment is received in Indian rupees but the bank has issued Foreign Inward Remittance Certificate . Clause 3A.6(i) of the Exchange Control Manual is reproduced below : 3A.6 (i) Authorised dealers should issue certificates in form BCI against receipt of inward remittances or realisation of foreign exchange on security paper if the amount exceeds ₹ 15,000/- in value, bearing distincti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it for discharge of a debt or liability denominated in foreign exchange to the extent and in the manner specified by the Reserve Bank. 2. A person shall be deemed to have repatriated the realised foreign exchange to India when he receives in India payment in rupees from the account of a bank or an exchange house situated in any country outside India, maintained with an authorised dealer. From the sub-Para (2) of Para 4 above it is very clear that, when a person receives in India payment in rupees from the account of a bank situated in any country outside India maintained with an authorised dealer, the payment in rupees shall be deemed to have repatriated the realized foreign exchange to India. In the present case, the payment in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) payment in any permitted currency in all other cases (2) all countries other than those mentioned in (1). (a) payment in rupees from the account of a bank situated in any country other than a member country of Asian Clearing Union or Nepal or Bhutan; or (b) payment in any permitted currency 2. In respect of an export from India, payment shall be received in a currency appropriate to the place of final destination as mentioned in the declaration form irrespective of the country of residence of the buyer. 7 . From the above regulation and serial No. (2) of the Table, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o us that a two way traffic , is unnecessary. To insist on a formal remittance to the foreign reinsures first and thereafter to receive the commission from the foreign reinsurer, will be an empty formality and a meaningless ritual, on the facts of this case. On a perusal of the nature of the transaction and in particular the statement of remittance filed in the Reserve Bank of India regarding the transaction filed in the Reserve Bank of India regarding the transaction, we are unable to uphold the view of the respondent that the income under the agreement is generated in India or that the amount is one not received in convertible foreign exchange. We are of the view that the income is received in India in convertible foreign exchange, in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus there is a outflow of foreign exchange but if the payment is made in Indian rupees, there is a saving of foreign exchange and if the said Indian rupees is received in India, the same is in lieu of foreign exchange which was saved at the time of repatriation of Indian rupees to foreign country. On this logic under the Foreign Exchange Management Act also it provided that if the payment in India rupees is received in India through banking channel it is deemed to be convertible foreign exchange. 6. In the instant appeals filed by the appellants, it is an undisputed fact that the payment has been received through foreign bank i.e. Mizuho Corporate Bank Ltd, for which, FIRC has been issued by the banks. The copy of FIRC has been subm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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