The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in the case of CELTIC SYSTEMS PRIVATE LIMITED Vs. C.C.E. & S.T.-VADODARA-I {Service Txt Appeal No. 10912 of 2021} has held that IT services provided by one company registered in one country to another company which is registered in another country will be termed as export of service . The relevant observation of the tribunal is as under :

“We have carefully considered the submission made by both the sides and perused the records. From the facts on the records, it is not disputed that the appellant company is working under the banner of M/s Celtic System Pvt. Ltd. registered with the registrar of companies in India. Whereas, the Service recipient is working under the banner of M/s Celtic Cross Holding Inc. USA. Both the companies are separately registered in their respective countries. Even the directors of the company though two directors are common but others are different. Even if there is a note in the balance sheet of the appellant company that they are associate of M/s Celtic Cross Holding Inc. USA but in the eyes of law as per the companies act both companies are independent entity. Therefore, Clause (f) of Rules 6A (1) of Service Tax Rules, 1994 stand complied with. This issue has been considered of Hon’ble Gujarat High in the case of Linde Engineering India Pvt. Ltd & Ors, wherein the Hon’ble Gujarat High court even in case where the Indian Company was 100% subsidiary of the foreign company namely Linde AG Germany has held that both are different entity. In the present case the appellant are on better footing as they have constitutionally two different entity one is the appellant and other is M/s Celtic Cross Holding Inc. USA. Therefore, following the judgment of Gujarat High Court, it is clear that in the present case the appellant and the service recipient are two distinct person, hence, the service provided by the appellant to M/s. Celtic Cross Holding Inc. USA clearly falls under export of service.”

The judgement can be accessed at :

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