Nokia India Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Delhi)
The CESTAT, New Delhi in the case of M/s Nokia India Pvt. Ltd. v. Commissioner of Service Tax [Service Tax Appeal No. 2639 of 2012 dated November 29, 2024] sets aside demand of service tax under ‘Business Auxiliary Services’ (“BAS”) rendered by an Assessee to overseas counterpart on finding that benefit of ‘export of service’ is ‘wrongly’ denied. The Bench cited Rule 3(3) of Export of Service Rules, 2005, and held that, BAS qualify as export of services as even though the services were rendered in India as the benefits of such services accrued outside India, being utilized by the foreign counter part and the phrase ‘used outside India’ is to be interpreted to mean that the benefit of service should accrue outside India. Therefore, in this category ‘export of service’ may take place even when all the relevant activities take place in India so long as the benefit of these services accrues outside India. Hence, the Department had raised demand basis presumptions and without appreciating the contract entered into and the invoices raised for rendering various services.
Facts:
M/s Nokia India Pvt. Ltd. (“the Appellant”) are registered with the service tax department being engaged in providing “Installation and Commissioning Implementation Services”, “maintenance or Repair Services” and BAS.
