TaxTMI 
TaxTMI 
2018 (5) TMI 408
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....ing the period 01/03/2008 to 31/03/2009 under the provisions of Section 73(2) of Finance Act, 1994 along with interest and other penalties. 2. Briefly the facts of the present case are that the appellants are engaged in providing various types of services and are registered with the Service Tax authorities. Appellant has a division called M/S. Sahara India TV Network, Mumbai (SITV, for short) which is separately registered under service Tax and are located in Mumbai. M/S. Aamby Valley Ltd. (AVL, for short) was a unit of the appellant but has demerged from the appellant in the year 2008 as per the scheme of arrangement. As per the scheme of arrangement, AVL was required to pay royalty for use of 'Sahara' brand @5% of annual turnover....
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....indicate that service tax is payable by SITV and the said service tax was paid in the month of January, 2013 itself without any delay and further that SITV is a division of the appellant and not a separate legal entity and the tax paid by the division is deemed to be paid by the same company. After considering the submission of the appellant, Commissioner vide the impugned order dt. 09/01/2014 confirmed the demand. Aggrieved by the said order, the appellant filed the present appeal. 3. Heard both sides and perused records. Learned consultant Shri S S. Gupta appearing for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly considering the facts and circumstances of the case.....
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....012-TlOL-1919-CESTAT-MUM] 5. He further submitted that the balance demand of Rss is on the amount of royalty and miscellaneous income of AVL. The show-cause notice alleged that AVL has earned the miscellaneous income of Rs. 3,14,57,862/- and Rs. 1,38,23,328/- during the year 2007-08 and 2008-09 on which no royalty has been charged by the appellant. In reply to this allegation, the appellant submitted that miscellaneous income accounted during 2007-08 and 2008-09 mainly comprised of sundry balance written back, liquidated damages, fines and penalty charges, foreign exchange difference, sale of scrap, transfer and cancellation fees etc. and hence the same was not considered. Learned consultant further submitted that the Commissioner has give....
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....pellant in the year 2008 by a scheme of arrangement and as per the scheme of arrangement, AVL is required to pay royalty to the appellant for use of 'Sahara' brand @ 5% of the annual turnover. We also find that the invoice raised by the appellant on AVL specifically provides that the service tax will be paid by SITV. Further we find that though SITV is separately registered with the Service Tax Department, but it is not a separate legal entity rather it is a division of the appellant who has discharged the service tax liability on behalf of the appellant and this does not tantamount to discharging the service tax liability of another company because the appellant and SITV form part of the same company and it is only a division of th....