Consultancy Services to Foreign Universities Qualify as Export, Exempt from Service Tax Under Place of Provision Rules

CESTAT determined that consultancy services rendered to foreign universities constitute "export of service" and are not subject to service tax. The tribunal found that the service provider receives consideration in foreign exchange from entities outside India, and Indian students are not considered service recipients. Applying Place of Provision Service Rules, the tribunal concluded that services performed outside the taxable territory with recipients located externally cannot be taxed. The services do not qualify as "intermediary services" and are eligible for export service benefits. Consequently, the service tax demand was set aside, and all three related appeals were allowed. .....

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