Case Law Details
Orbit Research Associates Private Limited Vs Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that commission earned on services provided to foreign entity for products sold in India is ‘export of service’ and accordingly exempt from service tax.
Facts- Orbit Research Associates Private Limited has filed this appeal for setting aside the order dated 20.02.2017 passed by the the Commissioner (Appeals). The appellant has contested the disallowance of exemption claimed from payment of service tax on export of service by treating the service rendered by the appellant as business auxiliary service defined u/s. 65(105)(B) of the Finance Act 1994 to an entity situated in India.
Conclusion- In the present case, the appellant, as is seen from the impugned order, had filed ST-3 Returns for the period from July 2012 to September 2014 and had shown the whole commission earned during the relevant period. The order also takes notice of the fact that the appellant had by a letter dated 31.07.2012 revealed to the department that it was providing services to the foreign entity for the products sold in India and that it had received commission payment for such services. It also needs to be noted that these facts had been brought to the notice of the department on 31.07.2012, but the show cause notice was issued to the appellant only on 03.09.2014. Thus, for all the reasons stated above, the extended period of limitation could not have been invoked.
Held that it is, therefore, evident that not only had the appellant rendered ‘export of service’, be it under the 2005 Rules or under the 2012 Rules, but the extended period of limitation also could not have been invoked in the facts and circumstances of the case.
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