The CESTAT held that the services rendered by the appellant to ...

Services to Overseas Universities Classified as 'Export,' Not 'Intermediary'; No Service Tax Liability, Appeal Allowed.

December 24, 2024

Case Laws     Service Tax     AT

The CESTAT held that the services rendered by the appellant to overseas universities/colleges amounted to 'Export of Service' and not 'intermediary service'. It observed that the appellant was not an agent of the foreign universities as per the agreements. All conditions u/r 6A of Service Tax Rules, 1994 were satisfied. The amount was received from foreign universities in convertible foreign exchange, not from Indian students. Indian students were not the service recipients. The place of provision was wrongly held to be in the taxable territory (India). The services fell u/r 3 of Place of Provision Rules, 2012, with the service recipient (foreign universities) located outside the taxable territory. Invoking Rule 9 of Place of Provision Rules was incorrect. The appellant was not liable to pay service tax on foreign consultancy fees. The show cause notice was barred by limitation as there was no evasion of tax. The order was set aside, and the appeal allowed.

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