9911796707
TMI Blog2011 (4) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... has paid Rs. 1,37.38.030-00 + Rs.27,77.471-00 to their holding Company M/s Molex International Inc. USA towards Royalty fees for supplying technical data during the period 2003-C4 and the service tax on the aforesaid Royalty works out to Rs. 13,21,240-00. A show-cause notice came to be issued on 02.07.2004 calling upon them to show cause as to why a sum of Rs.21,53,631-00 should not be demanded towards service tax with interest and penalty. The assessee replied to the said show-cause notice contending that collaboration agreement envisaged payment for use of technology involving transfer of technology and does not involve rendering of technical assistance, advice or consultancy. No services are actually rendered/provided or even deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s liable to pay service tax. However, sub-Section(2) makes it very clear that notwithstanding anything contained in sub-Section (1) in respect of any taxable service provided by the Central Government in the Official Gazette the service tax thereon shall be paid by "such person in such manner" and the same may be prescribed at the rate specified in Section 66 and all provisions of this Chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service. Therefore, the aforesaid provision authorises the Central Government to issue a Notification and prescribe a person who is liable to pay tax as well as the manner in which the tax is to be paid. As the opening words of sub-Section (2) start ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories Act 1948 (63 of 1948): (b) any company established, by or under the Companies Act, 1956 (1 of 1956); (c) any corporation established by or under any law; (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that. Act in force in any part of India; (e) any co-operative society established, by or under any law; (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or (g) anybody corporate established, or a partnership firm registered by or under any law; (B) any taxable service provided by a person who is a non-resident or is from outside India, does not have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.36/ 2004-Seroice Tax, dated the 31st December, 2004 which was published in the Gazette of India, Extraordinary, vide number G.S.R.849(E), dated the 31sl December, 2004, namely: In the said notification: (a) in paragraph (A), in sub-paragraph (iv), in item (h), for the words "established by or under", the words "formed or registered under" shall be substituted; (b) for paragraph (B), the following paragraph shall be substituted namely:- "any taxable service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India, and such service provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot. apply: Provided further that where the provider of the service has his business establishment both in that country and elsewhere, the country, where the establishment of the provider of service directly concerned with the provision of service is located, shall be treated as the country from which the service is provided or to he provided. (2) Where a person is carrying on a business through a permanent establishment in India and. through another permanent establishment in a country other than India, such permanent establishments shall he treated as separate persons for the purposes of this section. Therefore It is clear that from 18-4-2006 the service provided by a person who is outside the country and who has no fixed establishment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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