No service tax on training of officers outside India by a foreign agency

Gujarat Gas Limited Vs C.C. E. & S.T. – Surat (CESTAT Ahmedabad)

As far as demand of service tax in respect of services received by the appellant in respect of training of officers outside India by a foreign agency is concerned, the issue is squarely covered by the decision of Tribunal in case of M/s Firmenich Aromatics India Pvt Ltd. 2018 (10) TMI 655-CESTAT-AHD. In the said decision in para 6 following has been observed:

“6. We have gone through the rival submission, we find that liability of the tax of the question of law can be raised at any time. It is not in dispute that the training on which the tax has been demanded was under taken abroad. The services under Section 65 (105) (zzc) fall under Rule 3(2) of the Taxation of Service (provided from outside India and received in India) Rules, 2006. The services covered under the said sub-Rule is taxable only when the same are performed in India. In the instance case, it is not in dispute that the said service was performed outside of India. Therefore, there cannot be any liability of tax. The appeal on this count is allowed.”

Relying on the aforesaid decision, the appeal on this count is allowed.

FULL TEXT OF THE CESTAT AHMEDABAD ORDER