M/s Eldyn Electro System Pvt. Ltd. Vs. Commissioner of Tax, Kolkata
Order date: 15 March 2023

Facts:                                                                        

• The appellant, M/s Eldyn Electro System Pvt. Ltd., is engaged in Marketing and Promoting of Signaling Products of Alcatel SEL AG, German to Indian Railways, for which they received remuneration from foreign principal in Convertible foreign exchange. 
• Revenue was of the view that the said service do not qualify for export of service. Therefore, the appellant is liable to pay service tax. Hence, demand of service tax has been confirmed against the appellant under the category of “Business Auxiliary Service”.

Issue:

• Whether services provided by the Appellant qualify as Export of Services ?

Order:

• The Tribunal observed that it is for subsequent period to demand of service tax  on their activities for providing services to foreign Principal, for which they received remuneration in convertible foreign exchange in India.
• As the said issue has already been decided in favour of the appellant in their own case vide Order dated 02.03.2023, therefore, following the same, we hold that the appellant is not liable to pay  the service tax, as it is a case of export of service.   
• The court set aside the impugned order and allow the appeal with consequential relief.