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TMI Blog2017 (2) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... er discharging such service tax liability as per the authorisation given in their favor by the subsidiary company upto its withdrawal on 27.10.2003 - demand of service tax made on the appellant is without justification. The demand has also arisen on account of the inability on the part of the appellant at the time of investigation to produce the original documents such as invoices and TR 6 challans evidencing the payment of service tax. The appellant has submitted that there are now in a position to submit the original documents for verification. Since the learned DR has also no objection, we remand the matter to the original adjudicating authority for verification of the original documents. Appeal allowed in part and part matter on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the service tax payable by PWCDA, London are as follows: i. PWCDA was incorporated in UK as a subsidiary of the appellant. PWCDA rendered certain services to the Government of Karnataka Energy Department i.e. Karnataka Power Transmission Corporation Ltd. (KPTCL). The dispute pertains to the period 1999 till 2004-05. Since PWCDA did not have an office in India, they authorised the appellant, vide their letter dated 10.3.2001, to discharge the service tax liability on behalf of PWCDA. Accordingly, service tax liability was being discharged by the appellant on behalf of the foreign company. PWCDA subsequently, withdrew the authorisation vide their letter dated 27.10.2003 and thereafter the appellant stopped discharging the service tax obl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for fastening the service tax liability to extent of ₹ 24.49 lakhs on the appellant since the service involved therein has not been rendered by them. The service has been rendered by PWCDA located in London for KPTCL. In terms of provision of service tax law at the relevant time, the service tax in respect of non-resident service provider who does not have any office in India, the service receiver in India is liable to pay service tax. In this case, appellant is not the service receiver. Though appellant is the holding company for PWCDA, London, it cannot be considered as the Indian office of PWCDA. Consequently, there can be no liability for payment of such service tax on the appellant since it should be discharged by the service r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iary in London. The TRU circular dated 20.6.2003 has been referred to by the appellant in their submissions. The Circular has clarified several issues with reference to the new services introduced in the Finance Bill 2003. In para 2.9.2, the following clarification has been given. 2.9.2 In case of a non-resident service provider who does not have any office in India, the service receiver in India is liable to pay service tax. A doubt has been raised as to how such receiver would avail the service tax credit. As per the existing law, in such cases service receiver is required to take registration, to pay service tax and to comply with other procedural formalities. As there is no bar under service tax law on the service tax payer to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service tax liability of about ₹ 46.26 lakhs, the demand has arisen on account of the inability on the part of the appellant at the time of investigation to produce the original documents such as invoices and TR 6 challans evidencing the payment of service tax. The appellant has submitted that there are now in a position to submit the original documents for verification. Since the learned DR has also no objection, we remand the matter to the original adjudicating authority for verification of the original documents to be submitted by the appellant and to pass de novo decision in respect of the demand made in this regard. We make it clear that an effective opportunity is to be given to the appellant to furnish all the relevant docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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