2012 (8) TMI 597

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....gue till 31-3-2007. It is claimed that there is a new set of agreements between the applicant and their subsidiary effective from 1-4-2007. The agreement envisaged that the "subsidiary shall provide or procure marketing client servicing and other services that may be agreed upon from time to time to the extent necessary to carry out the terms and conditions of this agreement in a timely manner". In pursuance of the said agreement, the subsidiary of the applicant has raised debit notes for amounts referred to as "marketing and allocable general and administrative expenses" and "on site allocable general administrative expenses". The department has held that the payments made to the subsidiary of the applicant are charges towards "Business Au....

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....mits that they have treated the entire activity as IT services and as recipient they are paying Service tax on IT services with effect form 16-5-2008 in as much as the final products/services are exported by them they are also getting refund under Rule 5 of the Cenvat Credit Rules 2004. (f)      In case, they are held liable to pay Service tax as recipient of services as held by the department, then they are also eligible for credit of Service tax so paid by them as recipient and the entire exercise is revenue neutral. (g)     He further submits that the department commenced investigation on 9-8-2007 and issued the show cause notice for the period from 1-1-2005 to 31-3-2008 only on 22-4-2010. T....