TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal sets aside service tax demands for marketing & tech support citing export of services</h1> <h3>M/s Autodesk India Pvt. Ltd. Versus CST, Delhi</h3> M/s Autodesk India Pvt. Ltd. Versus CST, Delhi - 2019 (20) G.S.T.L. 581 (Tri. - Del.) Issues:1. Service tax demand on marketing and technical support services provided by the appellant.2. Demand for service tax under reverse charge basis.3. Classification of services for service tax purposes.4. Compliance with principles of natural justice in issuing show cause notices.Analysis:Issue 1: Service tax demand on marketing and technical support servicesThe appellant, a subsidiary of a US-based company, was providing marketing and technical support services to a Singapore-based company. The department issued a show cause notice for service tax amounting to Rs. 27,46,76,310. The appellant argued that the services provided were in connection with their foreign principal and were in the form of export of services. Citing relevant case laws, the appellant contended that service tax was not applicable on amounts received from foreign principals. The Tribunal agreed, setting aside the demand of Rs. 23,23,71,599 and Rs. 3,91,23,854 related to these services.Issue 2: Demand for service tax under reverse charge basisThe appellant contested a demand of Rs. 31,80,857 under reverse charge basis, arguing that the original show cause notice was vague and improved upon later, violating principles of natural justice. The department issued a corrigendum specifying the services after receiving the appellant's reply. The Tribunal found that the principles of natural justice were complied with as the appellant was given an opportunity to respond. The demand was upheld for certain services, and the appeal was partly allowed.Issue 3: Classification of services for service tax purposesThe Tribunal upheld the demand for commercial training service, real estate agent services, and management, maintenance, or repair service, as the appellant did not contest these and had paid the tax. However, a demand of Rs. 7,63,331 under internet telecommunication service was set aside. The appellant argued that the service was related to audio conferencing and should be classified differently. The Tribunal found insufficient evidence to classify it as an internet service, thus setting aside the demand.Issue 4: Compliance with principles of natural justiceThe Tribunal found that the department's issuance of a corrigendum to the show cause notice did not violate principles of natural justice as the appellant was given an opportunity to respond. The technical objections raised by the appellant were rejected, and the Tribunal upheld the demands for certain services based on merit and compliance with procedural requirements.In conclusion, the Tribunal set aside certain service tax demands while upholding others based on the nature of services provided, compliance with procedural requirements, and principles of natural justice. The penalty imposed was set aside, and the appeal was partly allowed in favor of the appellant.
TaxTMI 
TaxTMI 
