2016 (2) TMI 692 - AAR - Service Tax

Authority admits application over Revenue objections on foreign services & sister concern presence.

M/s Steps Therapeutics Ltd, Hyderabad Versus Commissioner of Customs, Central Excise And Service Tax, Hyderabad-IV

M/s Steps Therapeutics Ltd, Hyderabad Versus Commissioner of Customs, Central Excise And Service Tax, Hyderabad-IV - 2017 (49) S.T.R. 120 (A. A. R.) Issues Involved:1. Admissibility of proposed services for foreign clients.2. Objection raised by the Revenue regarding the proposed activity and sister concern.Analysis:1. The applicant sought clarification on the 'proposed services' for foreign clients, specifically related to drug analysis and market survey. The Revenue objected to the admissibility, arguing that the activity was not proposed as the company had been filing tax returns since its incorporation in 2011. The Revenue also highlighted a sister concern sharing addresses and previous orders from the Service Tax Authorities. The applicant countered, stating that despite filing returns, there had been no actual activity, as evidenced by zero income in the returns submitted to both tax authorities.2. Regarding the objection related to the sister concern, the applicant's counsel referenced a Gujarat High Court judgment and a previous ruling by the same Authority. The Gujarat High Court judgment addressed a similar issue, and the Authority's previous ruling provided further support for admitting the application despite the presence of a sister concern. Based on these precedents, the Authority decided to admit the application, considering the lack of actual activity by the applicant and the legal interpretations provided by the previous judgments.