2011 (4) TMI 1170

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....rest was also confirmed against the applicants. Penalty also stands imposed under Section 77 of the Act. 2. After hearing both sides, we find that the service tax stands confirmed against the appellants as recipient of services from a foreign merchant bankers under the name of Citigroup Global Market Ltd. and M/s. U.K. Paints (Overseas) Ltd. The period involved in the present appeal is 2006-2007. The proceedings were initiated against the appellants in March, 2009, by way of show cause notice issued in March, 2009, alleging that liability to pay service tax rests upon them as recipient of service from a foreign company in terms of provision of Section 66A of the Finance Act. The said proceedings stand culminated into impugned order ....

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....ence in the body of the agreement to another company M/s. Citigroup Global Markets India Pvt. Ltd. Learned SDR further draws our attention to Para 50 of the impugned order and the observation made by the Commissioner therein. As per factual findings arrived at by the adjudicating authority, the services were provided by the company located outside India and the invoices were raised by the foreign company. Payments were also made to the foreign company in foreign currency. Learned SDR submits that the appellants have not been able to place any evidence on record to substantiate their submission that the contract was entered into with an Indian company (may be affiliated foreign company) or the services were provided by the Indian branch. As ....

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....his place of business, fixed establishment, permanent address or usual place of residence, in India is liable to pay service tax. As such, condition regarding the foreign person not having office in India was done away w.e.f 19-4-2006. As such, at this prima facie stage we are of the view that the appellants have not been able to make strong case in their favour so as to allow stay petition unconditionally. 7. Even as regards limitation, we find that as per the observations made by the Adjudicating Authority the information as regards receipt of services from a foreign company, nature of such services, manner of payment to the foreign company in foreign currency were not disclosed to the Revenue at any stage. Learned Advocate appear....