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TMI Blog2018 (1) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... can be attributed for such consideration. It is rather a termination of arrangement which itself the original authority held as a service. We note that by terminating the arrangement, the appellants are adversely put to certain business loss. The consideration has been paid for such loss. No identifiable service could be attributed for such payment during the material time - tax liability cannot sustain. Appeal allowed - decided in favor of appellant. - Appeal Nos. ST/196 & 197/2009 - Final Order Nos. 40182-40183 / 2018 - Dated:- 23-1-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri Raghavan Ramabhadran, Advocate for the Appellant Shri K.P. Muralidharan, AC (AC) for the Resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sale of goods on behalf of the client RICO, India. Based on the particulars of income available in the balance sheet of the appellant, proceedings were initiated against the appellant resulting in the impugned order. The impugned order confirmed service tax liability of such income called Annual Incremental Purchase Payment as well as consideration received due to termination of the arrangement as per Termination Agreement dated 6.5.2005. 3. The ld. counsel for the appellant submits that first of all, the show cause notice and the impugned order have proceeded based on the income particulars of the balance sheet of the appellant. It is only in the adjudication proceedings certain examination of the agreements and further elaboration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upported the findings in the impugned order both on merits as well as on limitation. 5. We have heard both sides and gone through the case records. 6. Since the appellants are contesting the whole demand on limitation, we are considering the issue on limitation first. Admittedly, proceedings were initiated based on particulars gathered from the balance sheet of the appellant. The consideration accruing to the appellant in pursuance of value participation agreement was sought to be taxed after examination only during adjudication proceedings. No detail allegation or data was made or alleged in the show cause notice proceedings. We have perused the details of the agreement and the reasoning followed by the adjudicating authority. Prima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoke the ingredients of section 73(1) proviso can be sustained. In this connection, we also refer to the decision of the Tribunal in Hindalco Industries Ltd. Vs. Commissioner of Central Excise, Allahabad reported in 2003 (161) ELT 346 (Tri. Del) and Blackstone Polymers Vs. Commissioner of Central Excise, Jaipur reported in 2014 (301) ELT 657 (Tri. Del.). In these decisions, Tribunal held that if the demands are made based on balance sheet and other publicly made details of the company, the same cannot be sustained for extended period. 7. Regarding the tax liability on the consideration received due to termination of the arrangement, we note that no identifiable service can be attributed for such consideration. It is rather a terminati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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