Transfer pricing comparables and adjustments: Tribunal revisits loss-maker status, segmental comparability, working capital relief, and risk allocatio...
Business expenditure disallowance failed where commission, related-party salary and promotion payments were supported by records and inquiry was inade...
The CESTAT held that the extended period of limitation invoked for levying service tax was unsustainable as there was no wilful suppression of facts by the appellant. The demands of Rs.1,01,6,502/- under 'sponsorship' services, Rs.13,30,558/- on inter-company expenses, and Rs.20,371/- as interest were set aside. For renting services, the demand of Rs.2,45,58,483/- was set aside, and the appellant was directed to produce evidence for the remaining Rs.34,29,130/-. The demands of Rs.73,00,732/- for import of services and Rs.2,80,40,921/- for software licenses were remanded for de-novo adjudication to determine the appellant's role and liabilities. The penalties were also set aside. The appeal was disposed of accordingly.
The CESTAT held that the extended period of limitation invoked for levying service tax was unsustainable as there was no wilful suppression of facts by the appellant. The demands of Rs.1,01,6,502/- under 'sponsorship' services, Rs.13,30,558/- on inter-company expenses, and Rs.20,371/- as interest were set aside. For renting services, the demand of Rs.2,45,58,483/- was set aside, and the appellant was directed to produce evidence for the remaining Rs.34,29,130/-. The demands of Rs.73,00,732/- for import of services and Rs.2,80,40,921/- for software licenses were remanded for de-novo adjudication to determine the appellant's role and liabilities. The penalties were also set aside. The appeal was disposed of accordingly.
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