Order Date – 08 June 2023

Parties: M/s. Dassault Systemes Simulia Private Ltd. Vs The Commissioner of GST & Central Excise

Facts – 

• The Appellant, M/s. Dassault Systemes Simulia Private Ltd, is a dealer of imported software for their parent company namely, M/s.Dassault Systems Simulia Corp., United State of America. The appellant is engaged in supply of software in India and also provide maintenance, enhancement and support service to their clients in India.
• A show cause notice dt. 04.04.2011 was issued proposing to demand service tax on the taxable services under “Technical Testing and Analysis Services” (TTAS). and “Manpower Recruitment or Supply Agency Services” (MRASS) and to recover the wrongly availed credit.

Issue – 

• Whether the services provided to customers / members for effluent treatment and disposal of waste are classifiable under the category of service of club and association service?

Order – 

• The Tribunal observed that as per said rules, a person shall be deemed to have repatriated the realised foreign exchange to India when he receives in India payment in rupees from the account of a bank or an exchange house situated in any country outside India, maintained with an authorized dealer. Reliance was placed on Balaji Telefilms Ltd. - 2016 (43) S.T.R. 98 (T-M) wherein it was observed that the respondent did produce a certificate from Hong Kong and Shanghai Banking Corporation Ltd., their bankers, indicating that inward remittance from the overseas entity was in convertible foreign currency. The original authority rendered its findings after acknowledging this certificate. In the light of this, it is surprising that Revenue has chosen to argue that the condition of inward remittance in Export of Services Rules, 2005 had not been fulfilled.
• Further, during the relevant period (prior to 01.04.2011) the definition of "input services" had a wide ambit as it included the phrase "activities relating to business".  Thus, almost all the services were covered within the definition of "input services" if used for providing the output services. There is nothing to show that the said services were not used for the employees of the appellant-company.  The Tribunal in the case of Ford had considered the issue and held that the credit is eligible. 
• The appeal is allowed.