{"id":5782,"date":"2025-09-05T18:11:57","date_gmt":"2025-09-05T12:41:57","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5782"},"modified":"2025-09-05T18:11:57","modified_gmt":"2025-09-05T12:41:57","slug":"services-to-foreign-client-for-market-promotion-qualify-as-export-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/services-to-foreign-client-for-market-promotion-qualify-as-export-cestat","title":{"rendered":"Services to Foreign Client for Market Promotion Qualify as Export | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <\/strong><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000405445\/services-provided-to-foreign-client-for-market-promotion-qualify-as-export-scn-to-be-set-aside-cestat\"><strong><span class=\"TextRun SCXW219634151 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW219634151 BCX0\">Orbit Research Associates <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW219634151 BCX0\">Pvt.<\/span><span class=\"NormalTextRun SCXW219634151 BCX0\"> Ltd. <\/span><span class=\"NormalTextRun SCXW219634151 BCX0\">Versus<\/span><span class=\"NormalTextRun SCXW219634151 BCX0\"> Commissioner of Service Tax (Appeals-I), New Delhi (2025) 31 <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW219634151 BCX0\">Centax<\/span><span class=\"NormalTextRun SCXW219634151 BCX0\"> 451 (<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW219634151 BCX0\">Tri.-<\/span><span class=\"NormalTextRun SCXW219634151 BCX0\">Del)<\/span><\/span><\/strong><span class=\"EOP SCXW219634151 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li>Justice <strong>Dilip Gupta<\/strong>, President &amp; <strong>Ms\u00a0 Hemambika R. Priya<\/strong>, Member (T)<\/li>\n<li><strong> Shri S. Radhakrishnan<\/strong>, Adv., for the Appellant<\/li>\n<li><strong>Shri Rajeev Kapoor<\/strong>, Authorized Representative, for the Respondent<\/li>\n<\/ul>\n<h2><em style=\"font-size: 28px;\">Facts of the Case<\/em><\/h2>\n<p>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.<\/p>\n<h2><i>CESTAT Held<\/i><\/h2>\n<p>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.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2015%20(37)%20S.T.R.%20642%20(Tri.%20-&amp;itemType=AP\">Wall Street Finance Ltd. v. Commissioner<\/a> \u2014 2015 (37) S.T.R. 642 (Tri. &#8211; Mumbai) \u2014 [Para 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2014%20(36)%20S.T.R.%20766%20(Tribunal)&amp;itemType=AP\">Microsoft Corporation (I) Pvt. Ltd. v. Commissioner<\/a> \u2014 2014 (36) S.T.R. 766 (Tribunal) \u2014 [Para 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2023)%2011%20Centax%20269%20(Tri.%20%E2%80%93%20LB.)&amp;itemType=AP\">Arcelor Mittal Stainless (I) Pvt. Ltd. v. Commissioner<\/a> \u2014 (2023) 11 Centax 269 (Tri. \u2013 LB.) \u2014 [Para 28]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2023%20(73)%20G.S.T.L.%20310%20(Del.)&amp;itemType=AP\">Mahanagar Telephone Nigam Ltd. v. Union of India<\/a> \u2014 2023 (73) G.S.T.L. 310 (Del.) = (2023) 5 Centax 279 (Del.) \u2014 [Para 47]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Orbit Research Associates Pvt. Ltd. Versus Commissioner of Service Tax&hellip;<\/p>\n","protected":false},"author":16,"featured_media":5794,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-5782","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>Services to Foreign Client for Market Promotion Qualify as Export | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT held that services rendered to foreign clients for market promotion qualify as export of services; service tax demand via SCN was set aside.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/services-to-foreign-client-for-market-promotion-qualify-as-export-cestat\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Services to Foreign Client for Market Promotion Qualify as Export | CESTAT\" \/>\n<meta property=\"og:description\" content=\"CESTAT held that services rendered to foreign clients for market promotion qualify as export of services; 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