CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Service Tax Appeal No. 60568 of 2016 [Arising out of Order-in-Appeal No. 107/ST/Appeal-II/MK/GGN/2016 dated

29.07.2016 passed by the Commissioner (Appeals), Service Tax, Gurgaon]

Commissioner of Service Tax, Delhi-IV ……Appellant Plot No.36-37, Sector-32, Opp. Medanta Hospital, NH-IV, Gurugram, Haryana - 121001 VERSUS M/s BA Call Centre India Pvt. Ltd. ……Respondent DLF Plaza Tower, DLF City Centre, Phase-I, DLF Qutub Enclave, Gurgaon, Haryana-122002 APPEARANCE:

Shri Narinder Singh, Authorized Representative for the Appellant Ms. Priyanshi Chakraborty, Advocate for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO.60232/2026 DATE OF HEARING: 10.11.2025 DATE OF DECISION: 09.03.2026 S. S. GARG:

The present appeal, filed by the Revenue, is directed against the Order-in-Appeal dated 29.07.2016 passed by the Commissioner (Appeals) whereby it has been held that call center services provided by the respondent qualify as export of services under Rule 3(2) of the Export of Service Rules, 2005 and consequently, the respondent is eligible to the rebate claim for the period April 2008, May 2008 to January 2009.

2. Briefly the facts of the present case are that the respondent is engaged in the provision of call center services to its overseas entity, British Airways, based in United Kingdom (“BA UK”) in terms of the Masters Services Agreement dated 20.11.2007 and as per the Agreement, the respondent was engaged to provide call center service for which consideration was paid on a cost plus markup basis. The services were provided, in terms of the Agreement, to customers of BA UK in Asia Pacific region, including India, Dubai, Sydney and Singapore. During the relevant period, the respondent had exported 100% of its service to BA UK and had also duly discharged service tax on the same and was eligible to claim rebate of service tax paid by virtue of Rule 5 of the Export of Service Rules, 2005 read with Notification No.11/2005-ST F. No. B2/4/2004-TRU dated 19.04.2005 and accordingly filed the rebate claims stating that the rebate claim was rejected by the Deputy Commissioner Gurgaon vide Order dated 04.10.2010 on the ground that destination of consumption of service tax ended with performance of service in India and therefore, the call center service provided by the respondent during the relevant period do not qualify as exports in terms of Rule 3(1)(III) of Export Rules, relying on the judgment of Hon’ble Apex Court in the case of All India Federation Practitioner – 2007 (7) STR 6 to 5 (SC). The respondent filed appeal before the Commissioner (Appeals) who vide its order dated 29.02.2012 remanded the matter to the adjudicating authority to process rebate claim in terms of CBEC Circular No.111/05/2009-ST dated 24.02.2009. Thereafter, the Assistant Commissioner, Gurgaon rejected the claims vide Order-in-Original dated 13.04.2016 on the grounds that call center services provided by Call BA do not qualify as export of services as it does not satisfy the condition of “Used Outside India”. Aggrieved by the said order, the respondent filed appeal before the Commissioner (Appeals) Gurgaon and vide Order dated 29.07.2016, he allowed the appeal of the appellant. Aggrieved by the said order, Revenue has filed the present appeal.

3. Heard both sides and perused the material on record.

4. Learned AR for the Revenue submits that the impugned order is not sustainable in law as the same has been passed without properly appreciating the Export of Service Rules, 2005. He further submits that Rule 3(2) of Export of Service Rules, 2005 mandated that the provisions of any taxable service specified in sub rule (1) shall be treated as export of service when the following conditions are satisfied.

(a) Such service is provided from India and used outside India; and (b) Payment of such service provided outside I