2014 (6) TMI 422

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....ion 78 of the Finance Act, 1994. On a perusal of the records and hearing both sides, we find that the entire demand of Service Tax and cesses is under the head "Business Auxiliary Service (BAS)" and the same has been worked out in the reverse charge mechanism. We further find that the appellant's plea that there can be no demand of Service Tax on 'BAS' received from abroad for any period prior to 18-4-2006 was not accepted by the adjudicating authority. We further note that the appellant deposited an amount of Rs. 18,72,360/- (albeit under protest), which amount is higher than the amount of Service Tax and cesses demanded for the period from 18-4-2006. In view of the Hon'ble Bombay High Court's judgment in the case of Indian National Shipow....

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....greements were actually in the nature of discounts given to the foreign buyers of the goods and the same were not liable to be treated as commission for the purpose of levy of Service Tax under 'BAS'. In this context, the learned consultant has particularly referred to para 9 of the impugned order, which reads as follows : 9. M/s. Kudremukh vide their letter No. KIOCL/Finance Act, 1994/Service Tax/COM/025, dated 11-4-08 filed their reply to the show-cause notice. They have submitted that in order to promote the sale of its product, M/s. Kudremukh offered sales promotion commission. This was introduced due to low demand and increased competition at the relevant time. This commission was in fact in the nature of a discount offered to ....

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....igh Court's judgment in Indian National Snipowners Association case has been accepted by the C.B.E. & C. vide Circular dated 26-9-2011 ibid and that no findings were recorded on the aforesaid plea of the assessee regarding certain transactions for the period after April, 2006. 4. We have considered the submissions. We have also noted that the Board's Circular dated 26-9-2011 was not considered by the learned Commissioner while passing the impugned order dated 7-10-2011. We have also not found any findings on the aforesaid plea of the assessee regarding certain transactions with foreign companies for the period after April, 2006. In these circumstances, the question whether the appellant is liable to pay Service Tax with education ce....