9911796707
TMI Blog2015 (12) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... eal disposed of. X X X X Extracts X X X X X X X X Extracts X X X X ..... res would be deposited by the depository, by delivery of shares to the custodian, namely, M/s.Citi Bank N.A., Mumbai. 3.5) During the course of the audit of the accounts of the assessee, conducted by the internal audit party, it was noticed that, as per the annual report like balance sheet, profit and loss account etc., for the year 2007-2008, the paid up share capital had increased by 30 crores due to the allotment of 15 crores on equity shares underlying American Depository Shares, in the month of June, 2007. The said American Depository Shares had been listed and traded in the New York Stock Exchange. It had been noticed that the assessee had incurred share issue expenses of ₹ 175.36 crores, under the Head "Expenditure", in foreign currency, reflected in the profit and loss account. 3.6) It had been noticed that the assessee had entered into an underwriting agreement with various organisations, for the sale and purchase of American Depository Shares, by the underwriters. As per the prospectus, the underwriters are entitled for discounts and commissions. It had been found that the assessee had availed the services of underwriters, for the purpose of underwriting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax amount of ₹ 18,64,26,560/-, proposed vide Show Cause Notice dated 11.11.2011 under Section 76 of the Finance Act, 1994, for non payment of service tax on the gross amount received by them for the taxable service received, starting from the first day after the due date of payment till the date of actual payment; 4.I impose a penalty of ₹ 200/- per day for every day starting from the first day after the due date, till the date of actual compliance on M/s.Sterlite Industries India Ltd., Tuticorin, under Section 77 of the Finance Act, 1994 for their failure to register themselves with the Department; and 5.I impose a penalty of ₹ 25,49,32,832/- (Rupees twenty five crores forty nine lacs thirty two thousand eight hundred thirty two only) on M/s Sterlite Industries India Ltd., Tuticorin, under Section 78 of the Finance Act, 1994, for suppreessing the fact of rendering service and non-payment of service tax." 3.9) Aggrieved by the order passed by the Commissioner of Central Excise, Tirunelveli, dated 24.1.2014, the assessee had filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal on 26.4.2014, in Miscellaneous Order No.40855 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trary to the Legislative mandate and also the provisions of the Finance Act 1994. ii) Whether, in the facts and circumstances of the case, the orders of the Honourable Tribunal in Misc. Order No.40855/2015 dated 29.5.2015 and the rejection order in Misc. Order No.41202/2015 dated 11.09.2015 is vitiated by error of jurisdiction in so far as requiring a pre-deposit of ₹ 7 Crores of the disputed tax, in as much as the 2nd Respondent Tribunal has traversing beyond the scope of the dispute before it has sought to suggest that since an underwriter located in India providing underwriting services was liable to tax, an underwriter admittedly located outside India ought not to escape liability to tax. iii) Whether, in the facts and circumstances of the case, the order of the Honourable Tribunal, is in gross violation of rules of natural justice and fundamental rule of judicial procedure in as much as the services rendered by the overseas underwriter was per se not taxable under Section 65(105)(z) as the expression underwriter and underwriting have been defined under Section 65(116) and 65 (117) to have the same meaning as assigned under Rule 2 of the Securities and Exchange Board ..... X X X X Extracts X X X X X X X X Extracts X X X X
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