TaxTMI 
TaxTMI 
2014 (11) TMI 696
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....appeals are as under :- Customs duty demanded under Section 28 of the Customs Act, 1962 for mis-using Notification No. 52/2003-Cus dated 31.3.2003 along with interest under Section 28AB/28AA, ibid. Rs. 1,15,43,854/- Central Excise duty demanded under Section 11A of the C.E. Act, 1944, for misusing Notification No. 22/2003-C.E. dated 31.3.2003 along with interest under Section 11AB/11AA, ibid. Rs. 2,70,581/- Penalty imposed under Section 114A of the Customs Act, 1962 Rs. 1,15,43,854/- Penalty imposed under Section 11AC of the Central Excise Act, 1944 Rs. 2,70,581/- 3. Appellants are engaged in providing 'Technical Testing and Analysis Services' and they imported / procured capital goods / inputs and utilized the same for ren....
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....convertible foreign exchange. - Whether the show cause Notice and the demand for customs and Excise Duties on the capital goods / inputs imported / procured by Laxai Avanti is hit by limitation, inasmuch as the Appellants were regularly filing ST-3 Returns with the Jurisdictional Range Officer / Asst. Commissioner Service Tax. Further, ER-2 Returns were also being filed with the Jurisdictional Range officer / Asst. Commissioner of Central Excise that no goods were being exported. 5. Heard both sides. 6. Learned counsel on behalf of the appellants submitted that overseas customers of the appellants depending upon their requirement provide to the appellants the structure of a biochemical compound which is required to be developed by them. ....
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....t of Services Rules, 2005 have not been satisfied by the appellants and therefore, the benefit has been denied. 8. Before we proceed to discuss what the Commissioner has observed and our conclusions, it would be appropriate to look at the statutory provisions under Rule 3(2) of the Export of Services Rules, 2005 during the relevant period which has been reproduced by the Commissioner in his order as well as by learned counsel in the Synopsis submitted before us :- Up to 1.3.2007 - "The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:- such service is delivered outside India and u....
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....The impugned service i.e. TTA falls under Section 65 (105)(zzh) of the Finance Act, 1994 and during the period up to 31.3.2011, it was covered under 3(1)(ii). It was only by an amendment of the said sub-rule w.e.f. 1.4.2011 (Nofn. 12/2011-ST dated 1.3.2011 w.e.f. 1.4.201) that the said service was deleted and by implication, was transferred to Rule 3 (1) (iii). Consequent to this amendment, the second proviso to the said sub-rule was also amended to delete TTA service (i.e. zzh) from its ambit vide Nofn. 22/2011-ST dated 31.3.2011, effective from 1.4.2011. Accordingly, from 20.12.2006 to 31.3.2011, which is the impugned period, the said service was under the second category, which stipulated that a service in this category can be considered....
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....cipient of service is located abroad. Thus, the rationale behind the three-tier classification of the taxable services for the purpose of export is on the basis of nature of services. 32. In the instant case, it has been admitted that the entire service in question was rendered only in India and there is no part performance of the same outside India. From the correspondence on record, I find that answering to a questionnaire from the Department, the assessees have come on record vide letter dated 29.9.2010 stating as follows : Dear Sir, This has reference to your request for certain information. 1. Full details of service activities undertaken by your unit - T....
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....id not receive the service or the service provider did not receive the consideration in convertible foreign exchange. It is not the case of the department that neither any evidence has been provided nor any evidence brought before us during hearing to show that the appellant has not used the imported / indigenous materials for their activity of 'technical testing and analyzing' and resulting any export of service. 10. We also find from the submissions of learned counsel that in terms of Boards Circular dated 29.2.2008 read with Notification No. 5/2008-S.T. dated 1.3.2008, special provisions for three services were created and one of them was in respect of TTA services. If these services are provided from India in relation to any goods or ....