{"id":3069,"date":"2025-03-14T12:29:16","date_gmt":"2025-03-14T06:59:16","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3069"},"modified":"2025-03-14T12:29:16","modified_gmt":"2025-03-14T06:59:16","slug":"advisory-services-to-foreign-company-qualify-as-export-of-services-under-service-tax-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/advisory-services-to-foreign-company-qualify-as-export-of-services-under-service-tax-cestat","title":{"rendered":"Advisory Services to Foreign Company Qualify as Export of Services Under Service Tax | CESTAT"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000389946\/advisory-services-to-foreign-company-qualify-as-export-of-services-under-service-tax-cestat\">Arvind Singh Mewar Versus Commissioner of Central Goods Service Tax, Udaipur (2025) 28 Centax 61 (Tri.-Del)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Dr. Rachna Gupta<\/strong>, Member (J) &amp; <strong>Ms Hemambika R. Priya<\/strong>, Member (T)<\/li>\n<li><strong>Ms Shagun Arora<\/strong> &amp; <strong>Shri Kunal Agarwal<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Manoj Kumar<\/strong>, Authorized Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, an individual appointed as an advisor to JCB UK for its Indian Advisory Council, received a fixed annual remuneration in foreign currency for rendering advisory services. The Income Tax Department noted that tax was deducted at source (TDS) on the payments received, but no service tax was discharged. Consequently, a show cause notice (SCN) was issued, alleging that the services were rendered in India and did not qualify as an export of services. The adjudicating authority confirmed the demand for service tax amounting to \u20b927,17,073. Aggrieved by the order, the assessee filed an appeal before the Customs, Excise &amp; Service Tax Appellate Tribunal (CESTAT), Delhi, contending that the services were rendered to a foreign entity outside India and, therefore, were not subject to service tax.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Hon\u2019ble CESTAT Delhi held that the advisory services provided by the assessee to JCB UK satisfied all the conditions stipulated under Rule 6A of the Service Tax Rules, 1994 for qualifying as an export of services. The Tribunal observed that JCB UK\u2019s business establishment, where key corporate decisions were taken, was situated in the United Kingdom, and thus, in accordance with Rule 2(i)(b)(i) of the Place of Provision of Services Rules, 2012, the recipient of the service was located outside India. As all the requisite conditions were met, the services rendered by the assessee constituted an export and were not liable to service tax. Accordingly, the impugned demand was set aside.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Air India v. Commissioner \u2014 Final Order No. 50245\/2024, dated 19-1-2024 by CESTAT, New Delhi \u2014 Referred [Para 3.4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2023)%2011%20Centax%20269%20(Tri.%20-%20LB.)&amp;itemType=AP\">Arcelor Mittal Stainless (I) Pvt. Ltd. v. Commissioner<\/a> \u2014 (2023) 11 Centax 269 (Tri. &#8211; LB.) \u2014 Relied on [Paras 3.6, 14]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1995%20(76)%20E.L.T.%20497%20(S.C.)&amp;itemType=AP\">Collector v. H.M.M. Ltd.<\/a> \u2014 1995 (76) E.L.T. 497 (S.C.) \u2014 Referred [Para 3.4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2018%20(8)%20G.S.T.L.%20123%20(Bom.)&amp;itemType=AP\">Commissioner v. A.T.E. Enterprises Pvt. Ltd.<\/a> \u2014 2018 (8) G.S.T.L. 123 (Bom.) \u2014 Referred [Para 3.6]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2014%20(35)%20S.T.R.%20177%20(All.)&amp;itemType=AP\">Commissioner v. Monsanto Manufacturer Pvt. Ltd.<\/a> \u2014 2014 (35) S.T.R. 177 (All.) \u2014 Referred [Para 3.5]<\/li>\n<li>Commissioner v. Samsung India Electronics Pvt. Ltd. \u2014 2021 (2) TMI 399-CESTAT Allahabad \u2014 Referred [Para 3.6]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2015%20(37)%20S.T.R.%20757%20(Tribunal)&amp;itemType=AP\">Gap International Sourcing (India) Pvt. Ltd. v. Commissioner<\/a> \u2014 2015 (37) S.T.R. 757 (Tribunal) \u2014 Referred [Para 3.6]<\/li>\n<li>Involute Engineering Pvt. Ltd. v. Commissioner \u2014 2020 (12) TMI 533-CESTAT New Delhi \u2014 Referred [Para 3.6]<\/li>\n<li>Orbit Research Associates Pvt. Ltd. v. Commissioner \u2014 2023 (8) TMI 246-CESTAT New Delhi \u2014 Relied on [Paras 3.6, 15]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1996%20(88)%20E.L.T.%2024%20(S.C.)&amp;itemType=AP\">Raj Bahadur Narain Singh Sugar M. Ltd. v. Union of India<\/a> \u2014 1996 (88) E.L.T. 24 (S.C.) \u2014 Referred [Para 3.4]<\/li>\n<li>Sara Sae P. Ltd. v. Commissioner \u2014 2020 (12) TMI 701-CESTAT New Delhi \u2014 Referred [Para 3.6]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li>Notification No. 25\/2012-S.T., dated 20-6-2012 [Para 4.3]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Arvind Singh Mewar Versus Commissioner of Central Goods Service Tax,&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3071,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Advisory Services to Foreign Company Qualify as Export of Services Under 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