TaxTMI 
TaxTMI 
2026 (3) TMI 440
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....advertising and sales of traded goods of foreign collaborators. Under the agreement, the appellant incurred expenditure in India towards business promotion, raised debit notes, and received reimbursement of an agreed portion in convertible foreign currency. The activity appeared to be promotion or marketing of goods, allegedly classifiable as taxable service under 'Business Auxiliary Service' (BAS), as defined in section 65(105)(zzb) of the Finance Act, 1994 (F.A. 1994). As the appellant failed to discharge service tax, three Show Cause Notices were issued for levy of Service Tax under "Business Auxiliary Services". It was alleged that the Appellant was promoting the goods of its client and that such activity did not qualify as export of services, since the service was performed from India and used in India. After following the due process the Adjudicating Authority confirmed the demands and imposed penalties under sections 76, 77, and 78 as applicable. The appeals before the Commissioner (Appeals) were rejected, leading to the present appeals. 3. The learned Advocate Smt. Radhika Chandrasekar appeared for the appellant and Smt. Anandalakshmi Ganeshram, Ld. Authorized Representa....
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....n 73(1) is not invocable for April 2006 to November 2008. The Show Cause Notice dated 23.12.2009 is beyond the permissible period. All material facts were available in the Appellant's books of accounts; there was no suppression or misstatement. The issue involves interpretation of law, and the Appellant acted under a bona fide belief of non-taxability. L. In the absence of any service tax liability, penalties under Sections 76, 77 and 78 are unsustainable. Further, Section 80 of the F.A. 1994 bars imposition of penalty where reasonable cause is shown, which is clearly established in the present case. 3.2 Smt. Anandalakshmi Ganeshram, Ld. A.R., reiterated the findings of the impugned order and submitted that payments made for services rendered to group companies are liable to service tax. Each company is a distinct legal entity recognized under law, and therefore the principle of mutuality is inapplicable. She further submitted that Section 67 of the F.A. 1994, effective from 01.05.2006, defines "consideration" to include any amount payable for taxable services provided or to be provided. Merely describing a payment as reimbursement does not alter its true character. In ....
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....nsequence of lengthy arguments. 7. It is a capital exhaustion of Court time, lack of which has become critical. . ." (emphasis added) The Hon'ble Court had earlier in Kanwar Natwar Singh Vs Directorate Of Enforcement & Anr [2010 (13) SCC 255 / AIR 2010 SC (SUPP) 9 / (2010) 10 SCALE 401], held: "38. Before parting with the judgment, we are constrained to observe with some reluctance about the recent practice and procedure of including list of authorities in the compilation without the leave of the Court. In many a case, even the senior counsel may not be aware of inclusion of such authorities in the compilation. In our considered opinion, this Court is not required to consider such decisions which are included in the compilation which were not cited at the Bar. In the present case, number of judgments are included in the compilation which were not cited at the Bar by any of the counsel. We have not dealt with them as we are not required to do so." (emphasis added) Further certain guidelines with respect to the submission of written arguments/ synopsis were formulated by the Hon'ble Delhi High Court in Mst. Kiran Chhabra And Anr. Vs Mr. Pawan Kumar Jain ....
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....reasoning and also lays down the law, should be cited and against the first (later judgment) it ought to be noted that it simply follows or approves a particular earlier judgment. In that event, the earlier judgment may be excerpted or discussed together with a brief resume of the factual scenario in that case. 6. After the judgments have been cited or portions excerpted, the ratio-decidendi of the judgment needs to be stated, for, it is the ratio-decidendi and not the conclusion, that is binding as a precedent. 7. If there is a contention of the opposite side, it must be answered and not ignored or left for the court to look for an answer. When all the points or proposition on which the arguments are addressed have been stated, there has to be a summing up so that the Court can get a fair idea of what the arguments are leading to. 8. Throughout these written arguments, page numbers and placitums of the documents or other material on the court record, and the reported judgment, must be given so that the Court can readily reach it in order to verify. 9. Lastly, keeping them, brief is more helpful than giving a long mass of something which could ev....
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....i-600 032) and Panasonic Electric Works Asia Pacific Pte. Ltd ((hereinafter referred to PEWAP) 101 Thomson Road, #25-03/05, United Square, Singapore 307591) that this project shall be carried out for the purpose of promoting the sales of the product(s) specified hereinafter according to the following terms and conditions. Article 1 Outline of the Project Project : Increasing Sales for PEW Wellness Products Country : India Period : April 2007 to March 2008 Objective(s) : Awareness Creation, Sales Enhancement Action program(s) : Advertising, Sales Promotion, Marketing P.O.P. Budget & Cost Sharing : Total Budget US$ 362,848.00- PEWAP Sharing US$ 141,963.00- PHAI Sharing US$ 220,850.00- PEWAP Sharing will be made in United States Dollars US$ 141,983.00- ***** ***** ***** Article 3 Payment 3-1 PHAI and PEWAP are to observe the following payment plan. All claim documents have to reach PEWAP before the 25th of each month. PHAI shall send PEWAP by the way of mailing the complete set of claim documents for the purpose of remitting the payments of PEWAP sharing portion by the above mentioned date. If the clai....
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....troduced the negative list regime and defined "services" more broadly. However, the period under dispute precedes 2012. 10. Revenue has sought to classify the service allegedly rendered by the appellant under BAS as defined in section 65(105)(zzb) of F.A. 1994. Paras 3.1 to 3.3 of the OIO set out the legal provisions relied on by revenue and is reproduced below: "3.1. "Business Auxiliary Services was brought under the service tax net with effect from 01.07.2003 Sec. 65(19) of the Act defines "business auxiliary service' (BAS) as follows:- 'business auxiliary service' means any service in relation to.- (i) promotion or marketing or sale of goods produced or provided by or belonging to the client, or (ii) promotion or marketing of services provided by the client, or (iii) .......... (iv) .......... (v) ........ (vi) .......... or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospect....