TaxTMI 
TaxTMI 
2025 (9) TMI 1538
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....ls made in five Show Cause notices, confirmed demands of service tax under section 73 of the Finance Act, 1994 [Act] with interest under section 75 of the Act and imposed penalties under sections 76,77 and 78 of the Act as follows: SCN Period Service tax Penalties SCN 1 dated 19.10.2012 2007-08 to 2011-12 Rs. 15,23,06,723 Rs. 13,78,29,636 (section 78) Rs. 10,000 (section 77) SCN 2 dated 27.10.2014 2012-13 Rs. 1,27,36,786 Rs. 12,73,678 (section 76) Rs. 10,000 (section 77) SCN 3 dated 17.4.2015 2013-14 Rs. 2,71,77,210 Rs. 27,17,721 (section 76) Rs. 10,000 (section 77) SCN 4 dated 7.4.2016 2014-15 Rs. 2,28,80,635 Rs. 22,88,063 (section 76) Rs. 10,000 (section 77) SCN 5 ....
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....nt made the following submissions. 5.1 For the period 2007-08 up to 30.6.2012 demand of Rs.14,10,23,833/- has been confirmed in the impugned order. This demand has been worked out by considering the income under the following as taxable income. a) Freight and other incidental charges billed; b) Commission; c) Prior period items; and d) Other income 5.2 Of the above, the appellant had already paid service tax on the Commission which has been considered while computing the demand. 5.3. The income under freight and other incidental charges is not exigible to service tax because this was not income received for rendering any taxable service. The Commissioner wrongly considered this income, which mainly came from buying spac....
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....ide India. Therefore, it is covered by Rule 3 of the Export of Service Rules, 2005 (up to 30.6.2012) and for the period after 30.6.2012, the place of provision of service falls outside India as per the Place of Provision of Service Rules because the service recipients were outside India. 5.6 The other income on which the demand was not income for providing any taxable service at all. There is no evidence in the SCN or the impugned order that the income was earned for providing any taxable service. 5.7 The entire demand may be set aside along with interest and penalties. Submissions of the Revenue 6. Learned authorized representative for the Revenue vehemently supported the impugned order and asserted that it calls for no interre....
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....he space which he sells them. As decided in the Greenwich Meridian, when one buys and sells space on its own account, it is trading in the space and is not rendering any service. No service tax can be charged on such amounts, 8.2. Discounts received from airlines and sealines: When the appellant purchased large space, it received discounts from the airlines and sealines which it accounted for in its books of accounts. It is a well settled legal principle that such discounts are not a consideration for providing any service but are a concession in price for bulk purchase. No service tax can be charged on such discounts. 8. 3. Prior period items: Learned counsel for the appellant submits that these were some past dues which they had rec....
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....performed Outside India; Provided further that where the taxable services referred to in sub-clauses (zzg), (zzh) and (zzi) of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated outside India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed outside India, shall be treated as the taxable service performed outside India; (iii) specified in clause (105) of section 65 of the Act, but excluding‚- (a) sub-clauses (zzzo) and (zzzv); (b) those specified in clause (i) of this rule except....
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....ation.- For the purposes of this rule "India" includes the installation structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. 8.5. For the period from 1.7.2012, the Place of Provision of Service Rules, 2012 determined the place in which the service was provided. Usually, the place of provision of service shall be the location of the service recipient. Rule 3 of these Rules reads as follows: "3. Place of provision generally.- The place of provision of a service shall be the location of the recipient of service: Provided that in case "of services other....