TaxTMI 
TaxTMI 
2022 (2) TMI 1194
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....g that the receipts for design and drawing should be taxed u/s. 44DA of the Act instead of FTS u/s. 9(1)(vi) of the Act. 4. The underlying facts in both the appeals are identical. Therefore, both the appeals are disposed of by this common order for the sake of convenience and brevity. 5. The representatives of both the sides were heard at length, case records carefully perused. Relevant documentary evidences brought on record in the form of Paper Book carefully perused. 6. Briefly stated, the facts of the case are that the appellant company is an entity incorporated in the United States of America and is engaged in manufacturing and selling of products and equipments primarily for the North American Steel Industry. Products are generally used by steel companies to improve their iron desulfurization. 7. During the year under consideration, the assessee earned Revenue from Rashtriya Ispat Nigam Limited [RINL] and from Steel Authority of India Limited [SAIL]. The assessee company has undertaken the following two projects during the year: (i) Project with SAIL for design and engineering supply of drawings and equipment's, supply of plant and equipment's inc....
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....evoted wholly or almost wholly on behalf of that enterprise and the transactions between the agent and the enterprise are not made under arms length conditions, he shall not be considered an agent of independent status within the meaning of this paragraph." 13. A perusal of the aforesaid Article shows that a person shall not be deemed to have a PE if it carries on business through a broker, general commission agent, or any other agent of an independent status, if such person is acting in the ordinary course of his business. 14. A perusal of page 54 of the paper book shows the list of contracts entered into by RIC which is as under: S.No Name of the Party & Address Date of Contract 1 2 Inland Refractories Co. 38600 Chester Road, Avon, Ohio 44011-02339 23/03/2009 TATA Steel UK Consulting Limited 30 Millbank, London, SW1P 4WY, UK 21/04/2011 3 Schenck Process India Limited Plot Nos. 67-82, Tupudana Industrial Area (New), Hatia 03/02/2012 4 Barnes Group Inc. 10367 Brecksville Road, Brecksville, OH 44141 19/07/2013 5 McKeown International Inc. 1106, South Mays, Suite 100, Round Rock, TX 78664, USA 15/01/2014 6 Technosul....
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....nd large to find a project partner for the assessee to undertake the supply and erection of indigenous components. Besides, RIC is engaged for the liasoning service of the project on behalf of the assessee who neither intended nor empowered to conclude a project on behalf of the assessee. 19. On careful appreciation of facts, we are of the considered view that RIC is an independent consultant to provide certain liasoning service. In fact, the project is executed jointly by the assessee and its consortium partner in India M/s. Beekay Engineering Corporation. The two contracts are as under: S.No Description Prices (Currency) ESM, USA (USD) BEEKAY (INR) 1 Design & Engineering a) Imported (FOB) (Refer Table - 1) 694,494 2 b) Indigenous (At site) (Refer fable - 2) - 32,00,000 Supply of Plant & Equipment a) Imported (FOB) (Refer '['able - 3) 1,988,580 - b) Indigenous (At site) (Refer fable - 4) - 16,80,00,000 3 Supply of Refractories (At site) a) Imported (FOB) (Ref....
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.... b) Indigenous (FOR site) (Refer Appendix - 15-4) 251640000 3 Supply of Refractories (At site) NA - a) Imported (CIF) (Refer Appendix - 15-5) Included b) Indigenous (FOR site) (Refer Appendix - 15 - 6) 4(a) Supply of Commissioning Spares a) Imported (CIF) (Refer Appendix - 15 - 7a) 14300 - b) Indigenous (FOR site) (Refer Appendix - 15 - 8a) - Included 4(b) Supply of Insurance Spares i)Imported (CIF) (Refer Appendix- 15-7b) NA - ii)Indigenous (FOR site) (Refer Appendix-15-8b) - N* A 5 Civil Engineering Work including Supplies (Refer Appendix -15- 9) " NA 6 Supply of Fabricated Building Steel NA Structures at site including Sheeting, Glazing and Shop Painting (Refer Appendix 15- 10) 7 Erection of Building Steel Structures including Sheeting, Glazing and Final Painting ....