9911796707
TMI Blog2013 (6) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... as the GSAs appointed by the appellant not only represent the appellant abroad and provide various services on their behalf they also promote the sales of the services being provided by the appellant by undertaking various sales promotion activities. Since this service has been used by the appellant in India in relation to their business located, in India in terms of the provisions of Rule 3(1)(iii) of the Taxation of Services provided from outside India and received in India) Rules, 2006, this service has to be treated as having been provided from outside India and received in India by the appellant and, therefore, in terms of the provisions of Rule 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Taxation Rules, 1994, the appellant as service recipient would be liable to pay service tax on the same. Therefore, service tax demand of ₹ 15.53 crores is on strong footing. As the appellant have pleaded financial hardship stating that the appellant have on huge accumulated losses and are having difficulty in discharging their statutory functions appellant is directed to deposit an amount of ₹ 8 Crores within a period of 8 weeks from the date of this order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of Rule 3(1)(ii) of Taxation of services (provided from outside India and received in India) Rules, 2006, this service can be said to have been received in India only if the service has been performed in India, that since this service has been performed abroad, and no part has been performed in India , the same cannot be said to have been provided from outside India and received in India and hence, the same would not be taxable under the provisions of Section 66A of Finance Act, 1994 read with Rule 2(1)(d)(iv) of Service Tax Rules, 1994, that as regards the service received from General Sales Agent, the same is also not taxable in India, as the services of the GSA have been received by the appellant's branches located outside India, that in this regard he relies upon the judgement of the Tribunal in the case of Rajesh Exports Ltd. reported in 2013 (29) STR 147 (Tribunal-I), wherein it was held by the Tribunal that that the service of Lead Manager to an issue provided in United Kingdom for raising funds by issuing foreign convertible bonds were received outside India and, therefore, were not liable to service tax in India under reverse charge mechanism, that the Commissioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s clear that the General Sales Agent were to represent the appellant in the region assigned to them and in that region, they were required to promote the business of the appellant and also provide various services on their behalf, that thus the nature of the activities of the GSAs is squarely covered by the definition of business auxiliary service as defined under Section 65(19) of the Finance Act, 1994 and since this service has been received by the appellant based in India and has been used in relation to their business, the appellant as service recipient would be liable to pay service tax in respect of the same, that the appellant had suppressed the relevant facts from the department and, therefore, longer limitation period under proviso to Section 73(1) has been correctly invoked and penalty on them under Section 8 has been correctly invoked, that the department has strong prima facie case against the appellant and, that, therefore, conditions have to be imposed for safeguarding the interest of the Revenue while considering the appellant's plea for waiver from the requirement of pre-deposit. He, therefore, pleaded that this is not the case for total un-conditional waiver from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign territories for the services received by them. On perusal of the relevant clauses of the appellant's agreements with the GSAs as, reproduced in the impugned order, we are of the prima facie view that the services provided by the GSA to the appellant are covered by the definition of business auxiliary service as given in Section 65(19) of the Finance Act, 1994, as the GSAs appointed by the appellant not only represent the appellant abroad and provide various services on their behalf they also promote the sales of the services being provided by the appellant by undertaking various sales promotion activities. Since this service has been used by the appellant in India in relation to their business located, in India in terms of the provisions of Rule 3(1)(iii) of the Taxation of Services provided from outside India and received in India) Rules, 2006, this service has to be treated as having been provided from outside India and received in India by the appellant and, therefore, in terms of the provisions of Rule 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Taxation Rules, 1994, the appellant as service recipient would be liable to pay service tax on the same. We ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
