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TMI Blog2012 (8) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... ogue till 31-3-2007. It is claimed that there is a new set of agreements between the applicant and their subsidiary effective from 1-4-2007. The agreement envisaged that the "subsidiary shall provide or procure marketing client servicing and other services that may be agreed upon from time to time to the extent necessary to carry out the terms and conditions of this agreement in a timely manner". In pursuance of the said agreement, the subsidiary of the applicant has raised debit notes for amounts referred to as "marketing and allocable general and administrative expenses" and "on site allocable general administrative expenses". The department has held that the payments made to the subsidiary of the applicant are charges towards "Business A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that they have treated the entire activity as IT services and as recipient they are paying Service tax on IT services with effect form 16-5-2008 in as much as the final products/services are exported by them they are also getting refund under Rule 5 of the Cenvat Credit Rules 2004. (f) In case, they are held liable to pay Service tax as recipient of services as held by the department, then they are also eligible for credit of Service tax so paid by them as recipient and the entire exercise is revenue neutral. (g) He further submits that the department commenced investigation on 9-8-2007 and issued the show cause notice for the period from 1-1-2005 to 31-3-2008 only on 22-4-2010. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant. We also agree with his submission that it is a case of revenue neutrality. 5.4 Learned advocate also claimed that they have entered into a fresh agreement with effect from 1-4-2007 and that they paid a sum of about Rs. 66,00,000/- under business auxiliary services for the period from 18-4-2006 to 31-3-2007. Whether the new agreement will have any effect on the tax liability when the activities remain the same is doubtful. 6. However, on other grounds mentioned above by us, we hold that the applicant has made out a case for waiver of balance of dues. Therefore, we waive the pre-deposit of the balance of the dues as per the impugned order and stay recovery there of till the disposal of the appeal. (Pronounced and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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