TaxTMI 
TaxTMI 
2018 (11) TMI 1023
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....ce. They have received a contract from Indian Navy for submarine retrofitting. In terms of the contract they have received some amounts on which they are paying the service tax under Management, Maintenance or repair services. In addition, they received other amounts on which the Revenue sought to collect service tax which is the point of dispute. These amounts are: i) An amount received from Indian Navy for the purpose of upgrading their infrastructure at the shipyard so as to facilitate they undertaking future refits for Indian Navy. This amount is not linked to the present contract for refitting the submarine but an amount given to the appellant to enhance their facilitates. This amount will be adjusted against the payments to be made i....
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....ons made by the assessee to the effect that these are payments received towards obtaining necessary equipments and creating basic facilities before commencement of rendering of services. Reliance was placed on the order of the Tribunal in the case of Thermax Instrumentation Ltd., Vs. CCE, Pune-I [2016 (42) STR 19 (Tri.-Mumbai)] which has enumerated the various judicial decisions that advances made cannot be as to be taxed if such advances are adjusted against dues for rendering of services as that amount to double taxation. We respectfully follow these decisions". This order was appealed against in the Supreme Court but it has not been stayed or set aside so far. As far as the reimbursement of the income tax paid by the appellant as TDS for....
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....rvice tax is liable to be paid towards such services. It is the contention of the Learned Counsel that the repair technical documents (RTDs) are not in the nature of services but are goods which they have imported from outside India, by filing a bill of entry. Further, as these have been imported, they were excluded from the Andhra Pradesh VAT and were exempted from payment of CST. It is his contention that no service tax is paid can be charged in the RTDs as these are in the nature of the goods and are not services. As far as the income tax (TDS) on behalf of the Russian Company on sale of RTDs paid by them which were reimbursed by the Indian Navy are concerned, it is the submission of the Learned Counsel that these are reimbursable expens....