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TMI Blog2010 (3) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... ner for fresh decision in the light of the above directions. The assessees are at liberty to raise all pleas including that of limitation. Fresh orders shall be passed after extending sufficient opportunity to the assessees of being heard in their defence. The appeal is thus allowed by way of remand. - ST/198/2009 - 331/2010, - Dated:- 8-3-2010 - Ms. Jyoti Balasundaram, Vice-President and Dr. Chittaranjan Satapathy, Member (T) REPRESENTED BY: S/Shri Sriprakash and Savith V. Gopal, Advocates, for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per Jyoti Balasundaram, Vice-President]. - After hearing both sides for some time on the application for waiver of predeposit of service tax together with interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, in view of Export of Service Rules, 2005. The department, however, was of the view that above mentioned service fell under the category of Business Auxiliary' Service as per Section 65(19) of the Finance Act, 1994 and not covered under the Export of Service Rules, 2005 which came into effect from 15-3-2005. Hence a show-cause notice dated 13-3-2008 was issued proposing levy of service tax and interest and imposition of penalties upon the appellants. The notice was adjudicated by the Commissioner, confirming the demand of Rs. 90,19,554/- (Service tax of Rs. 88,42,700 + Education Cess of Rs. 1,76,854) as raised in the notice, together with interest at appropriate rates and imposed penalty at the appropriate rate under Section 76 and penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al or industrial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of services only if— (a) order for provision of such service is made by the recipient of such service from any of his commercial or industrial establishment or any office located outside India; (b) service so ordered is delivered outside India and used in business outside India; and (c) payment for such service provided is received by the service provider in convertible foreign exchange.; The rules were amended w.e.f. 16-6-2005 vide Notification No. 28/2005-S.T. dated 7-6-2005 whereby no major change was effected to sub-rule 3(3). Vide Notification No. 13/2006-S.T.. dated 19-4-2006, new Rule 3 replaced t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved therefrom, invoice raised on the foreign entity and document evidencing receipt of consideration in foreign exchange. Based on the documents furnished as above, the Commissioner has come to the conclusion that personnel have been hired locally to perform the job of low cast sourcing and supply chain management in India and has concluded that a separate MIS office of the foreign client in India on whom bills have been raised, existed, so as to apply the proviso to Rule 3(3) and since the assessees did not fulfil the condition prescribed in the proviso that the order for rendering of ser vice should have been made from the office of the foreign client outside India and the service should have been delivered and used outside India, they we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has always been a specific code and account for M Ford Motor Company, U.S.A (hereinafter referred to as "FMC"). That code is "US". Parts Data Base Here details with respect to all direct expenses and in come from sales of car parts are recorded. In this case also, every account has always had a separate code. Transactions are recorded on the basis of such distinct codes and accounts. Non-production Data Base : Here, details of all indirect expenses incurred in connection with the production of cars are recorded. Besides, details of "other income" are also recorded. "Other income" included in income from sources other than income from sale of cars and parts. Income from low cost sourcing and supply chain management services (LCS/SCM) pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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