Service Tax - Cestat Ahmedabad: As whole of the service was provided outside India and received outside India, therefore, the service tax is not leviable on the Business Exhibition Service received by the appellant which was performed outside India - Appeal allowed [Attached order dated 26 September 2022]
- The Appellant, RAMA CYLINDERS PVT. LTD, is a private limited company.
- It was submitted that the a foreign service provider and provided services in countries like Pakistan, Egypt, Bangkok and Ukraine. Further the service provider had provided the said service namely, Business Exhibition Service outside India only and the appellant had received the said service then and there only i.e. outside India.
- The issue involved in the present case is that whether the appellant is liable to pay service tax in respect of exhibition service provided by foreign service provider in respect of exhibition in abroad on behalf of the appellant for the period 2006-07, 2007-08 and 2009-10.
- Appellant submits that even the said service is not covered as import of service in terms of Taxation of Service (Provided from outside India and received in India) Rules, 2006
- Whether the appellant is liable to pay service tax in respect of exhibition service provided by Foreign Service provider?
- The Tribunal observed that in the present case the service provided by the overseas service provider is Business Exhibition Service. The service provider i.e. organizer of exhibitions are located in the countries such as Pakistan, Egypt, Bangkok and Ukraine and no part of the service was provided in India. Entire service was provided outside India only, therefore, the location of service is outside India. In such cases, service tax cannot be levied in India.
- Even as per Rule 3 of Sub Rule (II) of Taxation of Service (Provided from Outside India and Received in India) Rules 2006, a service can be taxable in the hand of the recipient of the service in India only when the part of the service is performed in India.
- The Tribunal held that in the present case, admittedly the whole of the service was provided outside India and received outside India, therefore, even in terms of the said rule, the service tax is not leviable on the Business Exhibition Service received by the appellant which was performed outside India hence not taxable in the hands of the appellant.
- Accordingly, the impugned order is set aside and appeal is allowed.