2021-VIL-130-CESTAT-BLR-ST

SERVICE TAX CESTAT Cases

Service Tax – ITSS & BAS - Refund of unutilized Cenvat credit – Rejection of refund claim on the ground that the BAS provided by the appellant to its group companies outside India cannot be treated as export of services and falls under ‘Intermediary Services’ – denial of refund for reasons beyond the show-cause notice – HELD - the first Order-in-Original, remand Order-in-Original and the impugned order, all have travelled beyond the show-cause notice because in the show-cause notice, there is no allegation regarding the intermediary service which has been upheld by both the authorities by ignoring the earlier direction of the remand order passed by the Commissioner (Appeals) - the appellant has proved by referring to Master Service Agreement that the sales marketing and support services provided to its group companies are export of service because the said services have been provided on principal to principal basis and there is no element of principal-agent relationship - the Commissioner (Appeals) has selectively picked up the clauses in the Master Agreement without analyzing the agreement as a whole – the appellant has satisfied all the six conditions of Rule 6A which proves that these services rendered by them are export of service - the impugned order is bad in law as it has travelled beyond the show-cause notice and also on merit as the services rendered by the appellant fall in the definition of ‘Export of Service’ and the appellant is entitled to refund – the appeal is allowed

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