Case Details: Orbit Research Associates Pvt. Ltd. Versus Commissioner of Service Tax (Appeals-I), New Delhi (2025) 31 Centax 451 (Tri.-Del)
Judiciary and Counsel Details
- Justice Dilip Gupta, President & Ms Hemambika R. Priya, Member (T)
- Shri S. Radhakrishnan, Adv., for the Appellant
- Shri Rajeev Kapoor, Authorized Representative, for the Respondent
Facts of the Case
The assessee, Orbit Research Associates Pvt. Ltd., was a marketing support service provider to foreign clients. During the audit, the service tax authorities asked for the service tax on the commission received from the foreign client for marketing in India. They treated such services as Business Auxiliary Service (BAS) and contended that the assessee was liable to pay service tax. The matter reached the CESTAT.
CESTAT Held
The CESTAT held that the service was provided solely to a foreign client, and the service charges were received in convertible foreign exchange. The assessee explored the market, identified the customers, and informed the foreign supplier of the potential customers in India. The foreign supplier ultimately supplied the goods to the Indian customers. Thus, the foreign entity was the recipient of the service, and as per rule 3 of the Place of Provision of Services (POPS) Rules, the place of provision of a service shall be the location of the recipient of service.Therefore, the services were qualified as export of services. The impugned show-cause notice was to be set aside.
List of Cases Cited
- Wall Street Finance Ltd. v. Commissioner — 2015 (37) S.T.R. 642 (Tri. – Mumbai) — [Para 10]
- Microsoft Corporation (I) Pvt. Ltd. v. Commissioner — 2014 (36) S.T.R. 766 (Tribunal) — [Para 10]
- Arcelor Mittal Stainless (I) Pvt. Ltd. v. Commissioner — (2023) 11 Centax 269 (Tri. – LB.) — [Para 28]
- Mahanagar Telephone Nigam Ltd. v. Union of India — 2023 (73) G.S.T.L. 310 (Del.) = (2023) 5 Centax 279 (Del.) — [Para 47]
