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2019 (1) TMI 179

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....ise, Delhi-I. 2. The appellants have set up another unit at United Kingdom. For this purpose, the appellant required finance in the year 2006-2007 and they raised capital by issuing external commercial borrowing and foreign currency convertible bond (FCCB) and by offering share to procure subscribers for Global, Depository Receipt (GDR). The appellant received the services of Eloro Capital London, Foreign Bankers and other service provider, who are located outside India. The said finance was arranged outside India and received by the appellant outside India and the same was utilized in purchasing shares of AEI Cables Ltd., London and no part of the said finance was remitted and received in India.. So far as the charges for financial/bankin....

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.....2009 was issued to the appellant by the Central Excise Commissionerate at Jaipur, demanding service tax of Rs. 57,09,199/- and also objecting to the reversal and/suo moto credit was taken of Rs. 47,83,744/-. Another show cause notice (for the same transaction) was issued by the Central Excise Commissionerate, Delhi-I at the Head Office of the appellant dated 27.04.2010 demanding service tax of Rs. 48,79,542/-. 5. In the impugned order-in-original passed by the Commissioner of Central Excise, Jaipur-I, the Commissioner has been pleased to drop the proceedings with respect to the demand of the service tax in view of the parallel show cause notice issued by the Addl. Commissioner of Service Tax, Delhi-I. However, the ld. Commissioner, Jaipur....

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....xation of Services (provided from Outside India and received in India) Rules, 2006, the ST/60498/2013 5 recipient of services of above mentioned category needs to discharge their service tax liability as if such services have been performed in India. It is categorically been provided that even if a part of borrowings have been used abroad for the business purposes, the facts remain that recipient of services is based in India and therefore, as per the provisions Section 66A of Finance Act, 1994 read with relevant rules, the appellant assessee should have discharged their service tax liability in India, on the amount of commission paid by them as the value of services received by them from abroad. Thus, we hold that appellant assessee are le....

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....nt of service tax on the services received from abroad. We do not subscribe to the arguments of the appellant that because they have written certain letters, only because of that extended time proviso is not invokable in their case. So far as the show cause notice pertains to Jaipur II Commissionerate, it had apparently been dropped saying that "the activity in question was enacted at Delhi and for which the concerned Commissionerate has already issued Show cause notice and therefore, the show cause notice issued for same period on same issue for Bhiwadi Unit has been withdrawn. This fact, in our opinion goes against the argument of appellant that even after coming to know that service tax is apparently payable by them on the services avail....

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..... 9. On the other hand, ld. AR appearing for Revenue has argued that taking of suo moto credit of already debited amount for discharge of service tax pursuant to the audit objection, is bad and against the Scheme & the Provisions of the Act & Rules. 10. As the said reversal was found recorded in the books of accounts maintained at their factory office at Bhiwadi and also shown in their returns filed with the Jaipur Commissionerate, the adjudication done by the Jaipur Commissionerate, vide its show cause notice objecting to the suo moto credit survives and does not merge with the show cause notice issued by Delhi Commissionerate, and the final order of this Tribunal, hereinabove mentioned. 11. Having considered the rival contentions, I fi....