TaxTMI 
TaxTMI 
2014 (4) TMI 326
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....e. 4. The contention of the applicant is that the applicant entered into agreements with M/s Yamazaki Mazak Singapore Pvt. Ltd for promotion and marketing of spares and accessories manufactured and supplied by the Singapore firm as well as for promotion and marketing, technical support, sales promotion of CNC machines, spares and accessories and installation and commissioning of CNC machines manufactured and marketed by the Singapore firm. As per the Agreement in respect of CNC machines the applicant also undertaking commissioning and installation of machines. In respect of commissioning and installation of machines the applicants are paying appropriate service tax. A Show Cause Notice dated 19.02.2013 was issued to the applicant demanding....
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....t sustainable. 8. Revenue relies upon the terms and conditions of the Agreement and the stay order passed by this Tribunal in Life Care Medical Systems vs. CST, Mumbai II - 2013 (29) STR 129 (Tri-Mum). The contention is that the Tribunal after taking into consideration the Board's Circular dated 24.2.2009 and subsequent Circular dated 13.5.2011 and the decision of the Hon'ble Delhi Court in Microsoft Corporation (India) Pvt. Ltd. vs CST reported in 2009 (16) STR 545 (DEL) in a similar situation held in favour of Revenue and the assessee was directed to pre-deposit part of the demand confirmed. The contention is that in view of this, it is not a case for total waiver of pre-deposit of service tax. 9. In reply the applicant pleaded ....
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.... addition to this, as per the Agreement applicants also to undertake the activity of assisting in evaluating the creditworthiness of potential customers in India. The relevant portion of the Agreement is reproduced below: "1. Activities to be performed by YMIN. YMIN shall primarily promote and market in India spares and accessories supplied by YMT. 1.1 Activities to be performed by YMIN specifically would involve the following: 1.1.1. Promoting and Marketing in India - spares and accessories by YMY: i. Understanding the technical requirements of the Indian customers: ii. Assisting the customers in providing an understandin....
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.... specifically excluded for performance by YMIN. 2. Obligation/Functions to be performed by YMT. The key functions to be performed by YMT are: i. Deciding upon the spares which will meet the requirements of the customer; ii. Deciding upon the creditworthiness of the customer, including deciding upon customer acceptance; iii. Determining the pricing of the spares to be sold in India, including the associated terms and conditions, and customer negotiations wherever essential; iv. Communicating with customer in India either directly or through YMIN." 11. Applicants cited various decisions the Tribunal after taking into consid....