𝗖𝗘𝗦𝗧𝗔𝗧 𝗞𝗼𝗹𝗸𝗮𝘁𝗮 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗥𝗲𝗽𝗮𝗶𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝗡𝗲𝗽𝗮𝗹𝗶 𝗖𝗹𝗶𝗲𝗻𝘁𝘀 📢 The Tribunal held: "Services provided to Nepal cannot be treated as export if proceeds are not received in Convertible Foreign Exchange. The benefit of cum-tax should be granted as the service tax was not separately collected, and penalties are set aside."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Avery India Ltd. ⚖️ 𝗜𝘀𝘀𝘂𝗲: Whether the services rendered to a client in Nepal should be treated as export and fall outside the purview of service tax?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provided “Maintenance and Repair Services” and “Installation and Commissioning services” to clients in Nepal but did not discharge service tax for these services. 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: A show-cause notice was issued on 02.09.2009 for the period April 2004 to March 2009, demanding service tax, interest, and penalties for non-compliance.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that services provided partly abroad are considered exports under Rule 3(1)(ii) of the Export of Services Rules, 2005. However, the appellant did not receive payment in Convertible Foreign Exchange. The demand for the extended period was set aside, penalties were waived due to genuine belief, and cum-tax benefit was granted. Appeal partly allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Avery India Ltd. vs. Commissioner of Central Excise, Customs & Service Tax, Patna 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 18 of 2012 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 09 January 2023 📜 This ruling clarifies that services rendered to Nepal are not exempt as exports if payment is not received in Convertible Foreign Exchange, but penalties are set aside due to genuine misunderstandings.