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TMI Blog2013 (11) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ner - assessee has preferred the appeal against the adjudication order dated 1.3.2012 passed by the Commissioner, Central Excise, Chandigarh-II. The order confirmed service tax demand of Rs.3,74,67,511/-, besides interest and penalty. The proceedings were initiated on the ground that the assessee had received some consideration from a US corporate entity i.e. Coca Cola Inc. for having promoted its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, under the bottlers agreement advertises the beverages manufactured by it; that a percentage of such expenses incurred are reimbursed by the US entity; that the reimbursement by U.S. entity is reflected by way of a rebate on the price liable to be paid by the assessee to CCIP, from which it purchases the concentrate/syrup; and that in the circumstances, the assessee must be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enge in this appeal. These orders have granted waiver of pre-deposit in full on the prima facie satisfaction that the assessees were not promoting the sale of any goods belonging to the US entity and therefore no business auxiliary service, as defined in Section 65(19) of the Act, could be said to have been provided by the assessees to the US entity. 3. Ld. DR would however contend, by reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter IV of the agreement dealing with obligations of bottler relative to the preparation and packaging of the beverage. 4. Though we find a prima facie case for Revenue as well, on examination of certain provisions of the "bottlers agreement" between the assessee and the US entity qua certain clauses therein, the reasons recorded by the adjudicating authority for concluding that the price adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by granting waiver of pre-deposit of the adjudicated liability and stay all further proceedings pursuant to the impugned adjudication order dated 1.3.2012 passed by Commissioner of Central Excise, Chandigarh-II, on condition that the petitioner remits 50% of the assessed service tax liability plus the proportionate interest thereon, to the credit of Revenue within six weeks. In default of depos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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