2023 (5) TMI 392

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... an agreement service dated 25.03.2016 with CETAS Healthcare Insights Pte Ltd, Singapore. The company is incorporated under the laws of Singapore have its registered office at Singapore, who are the service receiver (for short referred to as 'Cetas Singapore'), was engaged in the business of Market Research & Consulting Services to global medical devices industry. In CETAS Singapore Mr. Sumit Mehra is one of the directors who is the son of Mr. R.C. Mehta whereas Mr. R.C. Mehta, is the director in Cetas India. 3. Under the scope of the agreement, appellant is to do data collection and processing in accordance with the specification of the buyers/service receiver. The service receiver will issue work order specifying the scope of work to b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....service as 'export of service' under the head 'market research agency service' as defined under Section 65 (105) (y)' which defines service as- " taxable service means any service provide or to be provided- to any person by a market research agency in relation to market research of any product service or utility' in any manner. Revenue conducted audit of the appellant for the financial year 2014-15 to financial year 2016-17. Pursuant to audit, it appeared to revenue that the appellant have taken excess or wrong Cenvat credit of Rs. 4,01,676/- during financial year 2016-17 as detailed below. Period Amount of CENVAT credit as per ST-3 return Amount of CENVAT credit as per Ledger Difference 2016-17 Rs. 5,50,235/- Rs. 1,48,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....extended period of limitation alleging that the appellant have deliberately indulged in concealing the facts from the department, with the sole intention to avoid payment of service tax. Thus by not disclosing the entire facts to the Department, the said value has escaped the assessment to service tax liability, resulting into contravention of various provisions of the Act and the Rules thereunder. Further penalty was also proposed under Section 76, 77(2) 78 and Rule 15(3) of CCR r/w Section 78 of the Act. 9. The SCN was adjudicated on contest by the Assistant Commissioner, who was pleased to confirm the proposed demands alongwith interest and further imposed equal amounts of penalty under Section 78(i), further penalty was of 10,000/- w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncorporated association or a body of persons, as the case may be, and a member thereof, shall be treated as distinct person; Clause (b) - establishment of a person in the taxable territory and any of his other establishments in a non-taxable territory, shall be treated as establishment of distinct persons. 14. Learned Counsel states that as they are incorporated entities, they do not fall under the mischief or scope of Explanation 3 of Section 65B (44) of the Act. It is further pointed out that admittedly, appellant have declared the service under the head 'market research agency services' as defined under Section 65(105)(y) of the Finance Act. In the show cause notice, revenue have not rejected the classification, but raised only dou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the amount of credit in ST-3 returns, for the apparent difference in amount of Cenvat credit as per ledger (financial record), no disallowance can be made. Admittedly, the amount of Cenvat credit claimed matches with the amount of credit taken by the appellant in their Cenvat credit Register (statutory document). Accordingly, I set aside the disallowance of Cenvat credit of Rs. 4,01,676/-. 17. So far the disallowance of claim of export of service is concerned, I find that the appellant have provided service of market research agency service. Further, admittedly appellant have performed their work in India by collection of data and subsequent preparation of report. Such report have been sent or communicated to the principal located at S....