2018 (11) TMI 1151 – CESTAT CHENNAI – TMI – Reverse charge mechanism – appellants were engaged in providing clearing & forwarding services and they provided services to M/s. Project Management Inc. USA for the goods manufactured and exported by them for the period June 2008 – Held that:- The appellants have provided clearing and forwarding services to the service recipient who is situated outside India.
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The Tribunal in the case of Bnazrum Agro Export Pvt. Ltd. [2018 (4) TMI 1239 – CESTAT CHENNAI], had occasion to analyse the very same issue and it was held that the said activities having been performed outside India will not be exigible to service tax.
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Demand cannot sustain – appeal allowed – decided in favor of appellant. – A
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riod 1.7.2008 to 31.3.2009 along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. Counsel Shri Akhil Suresh submitted that the appellant had provided clearing and forwarding services to the service recipient who is situated outside India. Such services are performance based services and as per Rule 3(ii) of Taxation of Services (Provided from Outside India and Received in India) Rules 2006, there cannot be any liability even after insertion of Section 66A since clearing and forwarding services are wholly performed outside India. He relied
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