2011 (7) TMI 699

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....istrict Ratnagiri (assessee in short) are manufacturers of Food  products falling under various chapters of Central Excise Tariff. The assessee owned a car. During the period 2004-2005 to 2007-2008, they rented out the same  along with driver to M/s.Saf Yeast Co. Pvt. Ltd., at Mumbai. They received an amount of Rs. 12 lakhs  each in the financial year 2004-05 to 2006-07 and an amount of Rs. 4 lakhs in the financial year 2007-08 aggregating to Rs. 40 lakhs, for the said service  and did not discharge the service tax liability. Accordingly, a show-cause notice dated 05/03/2009 was issued proposing to  demand of service tax of Rs. 4,41,120/- under Section 73 of the Finance Act, 1994, interest thereon under Section 75 a....

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....peal on the ground that since the appellants are already registered in Mumbai, the Assistant Commissioner at Ratnagiri does not have any jurisdiction  either to issue notice or to demand the service tax inasmuch as the service has been rendered in Mumbai and it is the only the office who has jurisdiction over the appellant in Mumbai can initiate action. The department is in appeal against the impugned order.  3. The grounds urged in the appeal are that since the factory is situated at Ratnagiri, the Assistant Commissioner, Ratnagiri, has jurisdiction over the factory of the assessee and the assessee also has been  issued with a service tax registration at Ratnagiri. Inasmuch as the assessee has provided the service of rentin....