Oceanic Consultants Pvt Ltd Vs Commissioner or Central Excise And Service Tax (CESTAT Chandigarh)
CESTAT Chandigarh held that Indian Company engaged in promoting and marketing services provided by Australian Company is eligible for the benefit of the export of services.
Facts-
The appellants, M/s Oceanic Consultants Private Limited, have been engaged by M/s Oceanic Consultants Pvt. Ltd, Australia (OCA), vide Agreement dated 23.11.2009, to promote and market the services provided by the Australian Company to Foreign Educational Universities/ Institutions; in terms of the Agreement, the appellants were required to provide all necessary information about the course, fee, level of English proficiency to the prospective students in India and to assist them in completing application forms and their submissions to the foreign universities/ institutions; the appellants were to be reimbursed marketing and operating expenses and management fee calculated at 10% of the expenses.
On the basis of an inquiry conducted, the Department was of the opinion that as the appellant is rendering services which culminate prior to the proceeding of Indian students for study in Australia, the services are very much rendered in India and therefore, the same cannot be held as export of service and the appellants are liable to pay service tax under the category of “Business Auxiliary Service” u/s. 65(105) (zzb) read with Section 65 (19) of the Finance Act, 1994 for the period up to 30.06.2012; for the period from 01.07.2012, the appellants are required to pay service tax in terms of Section 66B of the Finance Act, 1994.
