9911796707
TMI Blog2011 (11) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... BN AMRO Rothschild (hereinafter referred to as ABN) and JP Morgan Securities Ltd., USA (hereinafter referred to as JP Morgan), who had acted as the lead manager to the issue and to whom payments of Rs. 5,23,62,658/-, Rs. 7,93,42,445/- and Rs. 12,34,37,000/- respectively had been made during those years. The department was of the view that the services of lead managers to the issue and underwritings and other banking & financial services had been received by the Appellant from offshore services provider - ABN and JP Morgan and, therefore, the appellants being service recipients are liable to pay service tax in respect of the same. Since the appellant had not paid any service tax, a show cause notice dated 22-5-2009 was issued to the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these would be taxable as underwriting services, that the appellants have already paid service tax amounting to Rs. 22,91,734/- along with interest amounting to Rs. 4,62,805/- on the charges for underwritings, that no service tax is payable on the remaining amount, that the appellant have strong prima facie case and hence, the requirement of pre-deposit of service tax demand, interest and penalty may be waived for hearing of the appeal and recovery thereof may be stayed till the disposal of the appeal. 5. Shri N. Pathak, ld. SDR opposed the stay application by reiterating the findings of the Commissioner in the impugned order and pleaded that the services of underwritings as well as managing the issue, were taxable, that the services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Act, 1994. The services of managing the issue is covered by the definition of Banking and other Financial Services (Merchant Banking Services) as defined in Section 65(105)(zm) read with Section 65(12) of Finance Act, 1994 and Section 2(e) of SEBI Merchant Bankers Act. In view of this, we are of the prima facie view that the services provided by the appellant for which about Rs. 12,34,37,000/- had been paid by the them to the offshore service providers were taxable services of Underwriter's Services and Merchant Banker' Services. In view of this, this is not a case for total wavier. The appellants are, therefore, directed to deposit an amount of Rs. 50 (Fifty) Lakh within a period of 8 weeks from the date of this order. This amount would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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