TMI Blog2022 (1) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... port is delivered to its client. In the present case, when such reports were delivered to the clients outside India it amounts to taxable service partly performed outside India. The performance of testing and analyzing has no value unless and until it is delivered to its client and the service is to be completed when such report is delivered to its client. Thus, delivery of report to its client is an essential part of the service, report was delivered outside India and same was used outside India. This is not the disputed fact. We hold that the respondent satisfied the conditions of rule 3(2) and accordingly, the respondents are eligible for the exemption under Notification No. 11 /2007-ST, dated 1-3-2007. Appeal allowed - decided in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods; rendered by the appellants are in the nature of Bundled Services as defined in Explanation to Section 66F of the Finance Act, 1994. The Department has issued a show-cause notice seeking service tax on Scientific and Technical Consultancy Service and Technical Testing and Analysis Service and the bundled pre-production services as listed above. Show-cause notice came to be confirmed by the Order-in-Original dated 31.12.2015 which is assailed by the impugned appeal. 2. Learned counsel for the appellant submits that the activities rendered by them are covered by Rule 3 of Place of Provision of Service Rules, 2012 (POP) and as such, no service tax is leviable as the place of provision of service was in a location outside India; t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant further submits that in terms of Section 66F of the Finance Act, 1994, concept of Bundled Services is applicable only when the service provider is rendering differentially classifiable services, wherein an element of provision of one service is combined with an element of or elements of provision of any other service or services and all these services are bundled and paid for accordingly; in the instant case, all the nine pre-production services are classifiable under Scientific and Industrial Consultancy Services as admitted in the SCN and consequently, the concept of Bundled Services cannot be invoked. As clarified by Para 5.4.1 of Education Guide - Clause 4(a) of the POP Rules is applicable largely to cases involving repair an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Lotus Lab Pvt. Ltd.: Final Order No.20258/2020 dated 25.2.2020; (iii) Sun Polytron Industries Ltd. vs. CCE, Vapi: 2009 (238) ELT 380; (iv) C3i Consultants India Pvt. Ltd. vs. CCE, Hyderabad: Final Order No.20240/2014 He further submits that CESTAT vide Final Order No.21890-21891/2014 dated 15.10.2014 has decided the issue in their favour in their own case. Department also followed the same vide Order-in-Original No.01/2021-22R dated 14.12.2021 passed by the Assistant Commissioner of Central Tax, South Division-9, Bangalore. 3. Learned Authorised Representative for the Department reiterates the findings of Order-in-Original. 4. Heard both sides and perused the records of the case. 5. We find that this Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice when the following conditions are satisfied, namely:- (a) such service is delivered outside [provided from]* India and used outside India; and (b) payment for such service [provided outside India]* is received by the service provider in convertible foreign exchange. *[added or substituted w.e.f. 1-3-2007] #{deleted w.e.f. 1-6-2007} Reading of the above provisions of Export of Services Rules, 2005 (hereinafter referred to as the Rules ) makes it amply clear that the taxable service specified in sub-clause (zzh) of Clause (105) of Section 65 of the Act is covered under Rule 3(1)(ii) of the Rules. The performance is not complete until the testing and analysis report is delivered to the client. In the present case, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s delivered to its client. Thus, delivery of report to its client is an essential part of the service report was delivered outside India and same was used outside India. This is not the disputed fact. We hold that the respondent satisfied the conditions of Rule 3(2) and accordingly the respondents are eligible for the exemption under Notification No. 11/2007-S.T. dated 1-3-2007. We do not find any force in the argument made by the learned DR. With this observation, the impugned order is upheld and the appeal filed by the Revenue is rejected. Stay petition is also disposed off accordingly. 2. Since the issue is covered by the decision of this Tribunal, the stand taken by the lower authorities cannot be sustained and has to be set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
