2018 (6) TMI 523

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....e service tax on the TDS portion conducted in terms of Section 195 of IT Act, 1961 on the royalty payment made to the foreign company. The department was of the view that the appellant has deducted TDS and is liable to pay service tax on those portions of the royalty also. SCN dated 03.07.2007 was issued proposing to demand service tax on the TDS portion. After due process of law, the original authority confirmed the demand, interest and also imposed penalty under Section 76 as well as 78 of the Finance Act, 1994. In appeal, the Commissioner (Appeals) set aside the demand prior to 18.04.2006. Relying upon the decision in the caser of Indian National Shipowner's Association vs. UOI 2009 (13) STR 235 (Born.). Aggrieved by the confirmation....

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....harran, AC, reiterated the findings in the impugned order. 4.  Heard both sides. 5.  The issue to be decided is whether the appellant is liable to pay service tax on the alleged deducted portion of TDS from the royalty paid to the foreign company. The allegation of the department is that the appellant has deducted TDS and therefore being the part of royalty the appellant is liable to pay service tax. The Ld. Counsel has produced a copy of the agreement and demonstrated that the appellant has paid TDS to the Government over and above the royalty paid to the foreign company, On the royalty the appellant has discharged the service tax. The Commissioner (Appeals) has set aside the demand prior to 18.04.2006. The Mumbai Bench of the ....