2017 (12) TMI 451

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... service liable to tax under Section 65 (105) (r) of the Finance Act, 1994 read with Section 65 (65). Proceedings were initiated against the appellant-assesses by way of issue of SCN dated 17.10.2012. The demand is for recovery of service tax under the category of Management or Business Consultant Service for the period 2007-08 to 2011-12. A total demand of Rs. 1,15,05,871/- was made in the notice. An amount of Rs. 2,710/- was also sought to be recovered as in-eligible Cenvat credit. The appellant-assesses contested the demand. The case was adjudicated resulting in the impugned order. The original authority held that the appellants are liable to pay service tax of Rs. 21,32,201/-. He dropped a demand for Rs. 93,73,670/-, which is attributab....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eligible as a credit and in such situation, there can be no allegation of intention to evade tax. As such, the demand cannot be made for extended period and no penalty can be imposed in such situation. 5. Regarding an amount of Rs. 2,710/- confirmed towards irregular Cenvat credit, it is submitted that the said amount has already reversed and the same has not been property recognized by the lower authority. 6. On the appeal filed by the Revenue, the ld Counsel for the appellant-assesses submitted that the original authority correctly applied the ratio of the decision of Hon'ble Delhi High Court in M/s Intercontinental Consultants & Technocrats (P) Ltd, 2012 TIOL 966 HC Delhi-ST to hold that the taxable value cannot include reimbursable e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er analysis is collected and done by the appellant-assesses in India, the same is in terms of an agreement with a foreign based company. The foreign based client paid consideration inconvertible foreign exchange. The nature of service being such, the same is for consumption and benefit of the foreign client. Service tax being consumption/destination based tax, we find that the services rendered by the appellant-assesses are, in fact, to be considered as export. We are in agreement with the appellant assesses that the ratio laid-down by the Tribunal in: i) M/s Gap International Sourcing (India) Pvt Ltd-2014-TIOL-465-CESTAT-DEL ii) M/s Microsoft Corporation (I) (P) Ltd-2014 (36) STR 766 (Tri.Del.) iii) M/s Paul Merc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acts and circumstances of the present case. Admittedly, the concept of reverse charge was a new legal principle for service tax. The same was subjected to numerous litigations and interpretation. The legal position got firmed up only after the decision of Hon'ble Bombay High Court in Indian National Shipping Owners Association-2009 (13) STR 235 Bombay, which was affirmed by Hon'ble Supreme Court-SC 2010 (17) STR J57. The legal position was confirmed and clarified by Board vide instruction dated 26.09.2011. Further, tax, if any, paid on reverse charge basis would have been eligible to the appellant-assesses as a credit for discharging further service tax liability. In such scenario, we find no justification to invoke the extended period for ....