TaxTMI 
TaxTMI 
2024 (4) TMI 726
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.... the Finance Act, 1994 [The Act] along with interest, as leviable under Section 75 and imposition of penalty under Sections 76, 77 and 78 of the Act. 3. The two-fold questions involved in the present appeal are the following: - (i) Whether the Appellant is liable to pay service tax on the license fees and other incidental expenses paid to the Russian Company i.e. M/s. Rosboronexport, Moscow, Russia towards transfer of technical knowhow and technical assistance for manufacture of aircraft & engines under the category of "Intellectual Property Services"? (Service Tax demand amounting to Rs. 23,72,60,000/-) (ii) Whether the Appellant is liable to pay service tax on amount received from the Malaysian company i.e. M/s. Setia Technologi SDN, BHD, Malaysia against repair/rectification of MIG Engines? (Service Tax demand amounting to Rs. 2,75,56,000/-) 3.1 During the course of audit undertaken by the Department, it was pointed out that the appellant were liable to pay Service Tax under reverse charge mechanism (RCM), towards expenses incurred by them in foreign currency on account of Licence Fee, Documentation charges and Foreign Technician Fees. T....
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....in force. To this extent, they also place reliance on C.B.E.C.'s Circular No. 80/2010/2004-S.T. dated 17.09.2004 [The said Circular]. Paragraph 9 of the said Circular for intellectual property reads as under: - "Circular No. 80/10/2004-S.T., dated 17-9-2004 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi 1. The Finance (No. 2) Bill, 2004 has been enacted on 10-9-2004. With the enactment of the Finance Bill, 2. The scope of these changes is explained in the following paragraphs. 3. Education Cess on taxable services : ... 4. Business exhibition services : ... 5. Airport services : ... 6. Transport of goods by air : ... 7. Survey and exploration of minerals : ... 8. Opinion poll services : ... 9. Intellectual property services (other than copyrights) : 9.1 Intellectual property emerges from application of intellect, which may be in the form of an invention, design, product, process, technology, book, goodwill etc. In India, legislations are made i....
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....s. 9. We find that the Ld. Commissioner has dismissed the impugned C.B.E.C.'s Circular holding that the impugned Circular has since been withdrawn vide Master Circular No. 96/7/2007-S.T. dated 23.08.2007. It may be appropriate to state that the revised Master Circular in effect states nothing contrary to what had been stated in the 2004 Circular and that the C.B.E.C.'s clarifications issued post introduction of the levy have to be read in the context of and as explained in terms of the communications sent to the field formations by the TRU inter alia explaining the provisions of the Finance Bill / Finance Act. 9.1 We also note that the Ld. Commissioner has relied upon the stay order in the case of SICPA India Pvt. Ltd. v. Commissioner of Cus., C.Ex. & S.T., Siliguri [2013 (30) S.T.R.630 (Tri. - Kol.)] in support of his stance. However, we are of the view that it would be inappropriate to rely on the said order as it is merely an interim order and cannot be taken as laying down any enunciation in law and is bereft of any precedent value. 9.2 It may further be pointed out that this Tribunal in the case of SICPA India Pvt. Ltd. v. Commissioner of Cus., C.Ex. & S.T., Siliguri ....
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....logi SDN, BHD, Malaysia. Necessary repairs and rectifications were carried out on the MIG 29 Aircrafts of Royal Malaysian Airforce. The appellant has characterized this service of repairs / rectifications provided by them as Export of Service inter alia pleading that the same was not liable to tax. 11.1 It is undisputed that the aforesaid activity of repairs and maintenance was carried out within the jurisdiction of India and therefore was liable for tax under Section 65(105)(zzg) as "management, maintenance or repair" service and was liable for payment of duty in terms of Rule 3(1)(ii) of the Export of Services Rules, 2005. The Ld. Commissioner vide the impugned order has categorically held that the provision of service having took place in India, there is a breach of Rule 6A of the Service Tax Rules, 1994 and Rule 3(1)(ii) of the Export of Services Rules, 2005. To this extent, we are fairly in agreement with the findings of the Ld. Commissioner on the aspect. 11.2 We however note that the impugned Show Cause Notice for the period indicated supra was issued to the appellant on 19.04.2013, invoking the extended period of limitation, alleging suppression of facts unearthed dur....