9911796707
TMI Blog2011 (11) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- had been paid by the them to the offshore service providers were taxable services of Underwriter's Services and Merchant Banker' Services - Pre-deposit ordered partly. - ST/95/2011-Cus - ST/797/2011(PB) - Dated:- 29-11-2011 - Ms. Archana Wadhwa, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Dev Inder Sharma, Consultant, for the Appellant. Shri N. Pathak, DR, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. The appellant are manufacturers of chemicals and pharmaceuticals products chargeable to central excise duty. During 2004-2005, 2005-2006 and 2006-2007, they issued Foreign Currency Convertible Bond (FCCB) to the extent of US$ 35 Million, US$75 Million and US$ 200 Million through ABN AMRO Rothschild (he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed on the appellant under Section 78 of the Finance Act, 1994. No penalty was imposed under Section 76 and 77 ibid. 2. Against this order of the Commissioner, this appeal along with stay application has been filed. 3. Heard both the sides in respect of stay application. 4. Shri Dev Inder Sharma, Consultant, ld. Counsel for the applicant pleaded that the appellant's agreement with the offshore service provider was for underwriting the entire issue and acting as Lead Manager to coordinate activities of other service providers, that in terms of the Board s Circular No. 96/7/2007-S.T., dated 23-8-2007 when the underwriting services were provided by the Lead Managers these would be taxable as underwriting services, that the appellants ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 2004-05, 2005-06 and 2006-07, the Commissioner has confirmed the service tax demand only in respect of the services received from the offshore service providers during the period from 18-4-2006 and accordingly, the service tax demand of only Rs. 1,52,56,813/- on the amount of Rs. 12,34,37,000/- paid by the appellant to the offshore service provider has been confirmed along with interest. There is no dispute that the services received by the appellant from J.P. Morgan and ABN were of underwriting the issue as well as managing the issue. The services provided by the underwriters is taxable under Section 65(105)(z) read with Section 65(116) 65(117) of the Finance Act, 1994. The services of managing the issue is covered by the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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