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TMI Blog2004 (9) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 2,37,80,059/- which includes the expertise for training the personnel of the Joint Venture in England. The Appellant was issued with show cause notice C.N. IV/16/39/2003 STC by the Deputy Commissioner, Tambaram Division, Chennai asked to show cause as to why an amount of Rs. 11,89,003/- should not be demanded towards service tax for the Consultancy Engineering Service said to be received by KCL. The Appellant filed his reply dated 13-5-2003 and also made his submission in the personal hearing. The Deputy Commissioner of Central Excise, Tambaram Division did not accept any of the contentions of the Appellant and passed the impugned order-in-original demanding service tax for an amount of Rs. 11,89,003/- and imposing penalty f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the purpose of levy. To a question as to whether in the case of advertising agency, getting a documentary or film prepared by film producer, the service tax is payable by the film producer on the documentary or film prepared by him in relation to advertisement, the Board clarified in F.No. 341/43/96 TRU dated 31-10-1996 thus : in this connection it is relevant to note that taxable service is a service provided to a client by advertising agency in relation to advertisement in any manner. Client is the advertiser. Therefore, in this case advertising agency cannot be considered as a client when the description of taxable service in relation to advertisement is interpreted in proper context. Accordingly, it is clarified that film prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brokers of the same stock exchange. The Board clarified when the transaction is on principal to principal basis between brokers and no investor is involved and as such no taxable service is provided and therefore no service tax is chargeable. [page 211 - Service Tax Digest]. 10. That the person who provides the service should be one who is engaged in the business of rendering such services to any one who requires such services from him is an essential element in considering the leviablity of service tax. To a question as to whether manufacturing of neon light sign boards as per the requirements of the customer, it was held that this activity was not falling within the scope of advertising agency service since the manufacturer cannot be ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortant element involved in the matter of levy of service tax. All the services were rendered beyond the territorial jurisdiction of India. The services were rendered in England where M/s. KCL is located. No tangible or intangible service has been rendered in India. Even the design of the product was not received by the appellant. In terms of Section 64 the levy of service tax as imposed in the Finance Act, 1994 extends to the whole of India except the State of Jammu Kashmir. Therefore, any service rendered beyond the territorial jurisdiction of India is not amenable to service tax. This has been made clear by the Board while clarifying the services rendered by Market Research Agencies. To quote, an issue has been raised whether service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no provision to tax through an authorised person. 15. In terms of Section 73, service tax can be levied on value of taxable services which escaped assessment within the period specified. If the payment of service tax escaped assessment by reason of omission or failure on the part of the assessee to file a return under Section 70 or to disclose wholly or truly of a materials on facts required for verification for assessment under Section 71, the demand has to be raised within five years. Where there was no omission or failure to file a return under Section 70 or information required under Section 71, the demand has to be raised within a period of one year. In the case of the appellant, the appellant was neither expected to file a ret ..... X X X X Extracts X X X X X X X X Extracts X X X X
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