2013 (8) TMI 638

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....ng Engineer to fulfill the obligation of CCC and as per the scope of the said agreement, the appellant is required to provide design and consultancy service related to the project. The appellant company has a project office in India, which is registered with Service Tax Department under the category of consulting engineer service. The service of designing, engineering and other technical inputs related to project is provided by the head office from Canada. The project office of the appellant in India undertakes executing the activities relating to and incidental to the project. The head office of the appellant company at Canada has deputed some of its officials at the project office in India for which the debit notes have been raised by the....

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....hile penalty of equal amount of Rs.1,17,28,628/- was imposed on the appellant under Section 78 of the Finance Act, 1994, penalty of Rs. 70,000/- was imposed on them under Section 77 ibid. 1.4 Against the above order of the Commissioner, this appeal has been filed alongwith stay application. 2. Heard both the sides in respect of stay application. 3. Shri B.L. Narasimhan, Advocate, the learned Counsel for the appellant, pleaded that two different persons are not involved in the instant case and this is a case of provision of service by the appellant company based at Canada to themselves, that project office of the appellant company in India cannot be treated as a separate entity from its head office at Canada, as the project office c....

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....llant company in India has an identity separate from the head office and since it has received manpower recruitment or supply agency service from the head office, service tax on the value of the same would be payable by the project office in India. He, therefore, pleaded that this is not the case for waiver from the requirement of pre-deposit. 5. We have carefully considered the submissions made by learned DR and have perused the records. 6. The undisputed facts are that the appellant company's head office is at Canada and in India they have set up only a project office for implementation of a project in terms of agreement between them and the Government of Uttranchal. Since some of the manpower has been deployed by the head office to....