2017 (4) TMI 1083

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1,26,99,109/- along with interest and proposing penalty under Section 76,77 and 78 of the Finance Act, 1994. The show cause notice was issued for the period 2004-2005 to 2007-2008. The allegation in the show cause notice was that the appellant had not paid the Service Tax on Overseas Commission credited to the Overseas Commission Agent (OCA) ledger account and that the transaction between them and OCA was between the associated enterprises. The matter was adjudicated and the demand of Rs. 1,19,45,400/- was confirmed along with interest and imposition of equivalent penalty under Section 78 ibid. The penalty was also imposed under Section 77. The demand of Rs. 7,53,709/- for the period 01.04.2005 to 17.04.2006 was dropped. 3. The Ld. Advo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cause notice dt. 21.04.2009 is that the concept of associated enterprises has been introduced and the burden has been put on the appellant to produce the documentary evidence without the Department satisfying the initial onus of providing the basis how the  OCA and the appellant are associated enterprises. The Commissioner s findings in Para 4.1 of O-I-O reproduced below provide no clue as to the basis of the allegation by the Department that the appellant and OCA are associated enterprises. "4.1 The Noticee has contested that OCAs are not their associated enterprises. I find from the records that the issue was noticed by the Audit team during the course of audit of records of the Noticee from the scrutiny of Profit and Loss Account....