9911796707
TMI Blog2018 (2) TMI 1679X X X X Extracts X X X X X X X X Extracts X X X X ..... eir own contract in India - liability set aside - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.ST/55266/2013-CU [DB] - Final Order No. 50768/2018 - Dated:- 20-2-2018 - Mr. S. K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) For the Appellant : Mr.B.L.Narasimhan, Advocate ` Mr.Rachit Jain, Advocate For the Respondent : Mr.Sanjay Jain, D.R. ORDER Per : B. Ravichandran The appellant is aggrieved by the order dated 10.10.2012 of Commissioner of Service Tax, New Delhi. The appellant is a project office of M/s. SNC Lavalin Inc, Canada (SNC, Canada). They are registered with the Department and are discharging service tax on certain projects executed in India. SNC, Canada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act, 1994. 2. The ld. Counsel appering for the appellant submitted that the appellant, is a project office of SNC, Canada. They are registered with the Service Tax Department and have discharged the Service Tax on the full amount paid by the client to SNC, Canada. This has been categorically asserted and not disputed in the present proceedings. The plea of the Revenue that the deployment of officers of SNC, Canada sent to execute the work in India are to be considered as manpower supply for the appellant is neither factually nor legally tenable. First of all, he submitted, that the gross amount for the whole project has suffered service tax. The expenditure involving salary and travelling of Officers of SNC, Canada is expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case laws relied upon are not directly relevant as in the present case the original authorities examined the application of legal fiction with reference to independent existence of the appellant in India. 5. We have heard both the sides and perused the appeal records. 6. The appellant is a project office of SNC, Canada. SNC, Canada has provided service to a project in India in pursuance of an agreement between Govt. of Uttaranchal, CCC and SNC, Canada. It is SNC, Canada, who executed the project in India in terms of the agreement. For statutory requirements in order to fulfil the obligations of various enactments, SNC, Canada had a project office in India. The appellant as a project office maintained accounts of all the financial tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les. 7.1 Firstly, the whole of the income shown in the books of accounts of the appellant, though the same is accrued to LIL, Canada has suffered tax under the category of consultancy engineering service. An expenditure, which is part of the same accounting for income, cannot be taxed for the same service, even under reverse charge tax. Secondly, the appellant has no agreement or arrangement with LIL, Canada to receive any ST/59141/2013-ST [DB] 6 consultancy service. No such allegation has been made. LIL, Canada apparently, procured such consultancy service from various consultants, which in turn were used for rendering service to Indian clients. In fact, such services were effectively managed and utilized by LIL, Canada. This is expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of Torrent Pharmaceutical Ltd. - 2015 (39) STR 97 (Tri. Ahmd.), Milind Kulkarni 2016 (44) STR 71 (Tri. -Mumbai) held that the fiction created under Section 66A to consider the branch of an assessee as a separate establishment is not to tax a service rendered to its head office. On the same ratio, we hold that even service if any received by the branch office cannot be subjected to tax. 8. We note that the appellant has not received any service to be taxed in the present situation. The debit entries are for maintaining complete financial transaction on behalf of SNC, Canada. Further, it is clear that SNC, Canada cannot be categorized as a manpower recruitment or supply agency while involving deputing their own staff to exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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