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TMI Blog2015 (4) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... esumption to treat such outstanding balances to be relating to taxable services and therefore the contentions mentioned above, while needing to be examined in detail at the time of final hearing, prima facie, have force. Further the amendment to Section 67 ibid relating to associated enterprises was effective prospectively from 10.5.2008 as has been held by CESTAT in the judgement M/s Gecas Services India Pvt. Ltd. (2014 (7) TMI 410 - CESTAT NEW DELHI). In view of the foregoing and specially the judgment of SAP (India) Private Limited vs. CCE, [2013 (8) TMI 784 - CESTAT BANGALORE] and having regard to fact that the appellants started paying service tax on this transaction under reverse charge mechanisms under Information Technology Softw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned liabilities during pendency of the appeal. - Stay granted. - ST/STAY/59349, 59351, 59352, 59353/2013, Appeal No. ST/58710, 58711, 58712 & 58713/2013-CU(DB) - Stay Order No. 50643-50646/2015 - Dated:- 16-2-2015 - G. Raghuram And R. K. Singh,JJ. For the Appellant : Shri B. L. Narsimhan, Advocate For the Respondent : Shri Govind Dixit, DR ORDER Per: R. K. Singh Stay applications alongwith appeals have been filed against Order-in-Original No. 27-30/AKM/CST/ADJ/2013 dated nil issued on 01.4.2013 in respect of four show cause notices. The impugned demand confirmed by the said Order-in-Original alongwith interest and penalties is segmented as under: S.No. Category ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,52,146 2. Heard both sides with regards to the stay applications. 3. Regarding the major component of demand pertaining to outstanding balance regarding Debtors/ Creditors for services provided/received, as explained during the hearing, the applicants have provided services to/received services from Siemens, USA and other associated enterprises. They in some cases receive consideration/make payment in respect of the above said transactions after the issue/receipt of the invoices. Till the time consideration is received/paid by them the said amounts lie as outstanding debtors/creditors in the books of accounts. On the said outstanding debtors/creditors balance, the impugned order has confirmed service tax demand in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994, came into effect on 10.05.2008 and the same are prospective in nature as held by CESTAT in case of M/s Gecas Services India Pvt. Ltd. Vs. CST Delhi 2014-TIOL-1079-CESTAT-Del. We indeed find that the adjudicating authority has not indicated anywhere as to what are the services on which the service tax has not been paid in respect of the amounts shown as debtors and creditors. Prima facie thus it can hardly be anybody s case that all the outstanding amounts regarding Debtors/ Creditors would be liable to service tax when it is not even indicated as to what are the taxable services they relate to. There is no legal basis for presumption to treat such outstanding balances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aced inter-alia on SAP (India) Private Limited Vs. CCE, 2013 TIOL-595- CESTAT-Bang. (v) That the services in relation to information technology became taxable w.e.f. 16.05.2008. Accordingly, they started paying service tax on the transaction under reverse charge mechanism under Information Technology Software Service and already paid ₹ 2,75,65,909/- for the period from 18.05.2008 to 31.03.2009. In view of the foregoing and specially the judgment of SAP (India) Private Limited vs. CCE, 2013-TIOL-595-CESTAT-Bang and having regard to fact that the appellants started paying service tax on this transaction under reverse charge mechanisms under Information Technology Software Service w.e.f. 16.5.2008, we are of the view that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvice, consultancy and guidance to its customers/ distributors for operation of the softwares. They are also receiving the said assistance from their overseas affiliated companies. They (i.e. the appellants) are not recovering/paying any amount separately for such assistance provided/received and were apportioning a portion of the sale proceeds under this head merely for accounting purposes. The appellants have contended that service tax is not payable as the said activities are incidental to sale/ purchase of softwares and no amount is collected from the customers or paid to the overseas affiliated companies separately and that VAT is being paid on entire value of the softwares. Prime facie, we find force in the contention of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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