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TMI Blog2018 (6) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 - Dated:- 2-3-2018 - Ms. Sulekha Beevi, Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Ms. Radhika Chandrasekar, Advocate for the appellant Shri K.P. Muralidharan, AC (AR) for the Respondent. ORDER Per Bench The brief facts are that the appellants are engaged in the manufacture of additives and are registered with the Service Tax Department under different category of services. They discharged service tax on the royalty and other fees paid to the foreign company under reverse charge mechanism. However, they did not discharge service tax on the TDS portion conducted in terms of Section 195 of IT Act, 1961 on the royalty payment made to the foreign company. The department was of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid entire ₹ 100/- to the foreign company and the TDS of ₹ 10/- is separately discharged to the Government of India. Therefore, the demand raised alleging that the appellant has deducted TDS amount from the royalty cannot sustain. In any case, the Tribunal in the case of Magarpatta Township Dev. Constructions Co. Ld. Vs. CCE - 2016 (43) STR 132 has held that the demand of service tax on the TDS portion cannot sustain when there is no evidence to indicate that such amount was consideration for services received from the service provider. 3. The Ld. AR, Shri K.P. Muralidharran, AC, reiterated the findings in the impugned order. 4. Heard both sides. 5. The issue to be decided is whether the appellant is liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Received in India) Rules, 2006, as are partly performed in India, shall be the total consideration paid by the recipient for such services including the value of service partly performed outside India. It can be seen from the above reproduced Rule that for the purpose of discharge of Service Tax for the service provided from outside India, the value is equal to the actual consideration charged for the services provided or to be provided. In the case in hand, we specifically asked for the invoice/bill raised by the service provider and on perusal of the same, we find that appellant had discharged the consideration as raised in the said invoice/bill. There is nothing on record that indicates that the appellant had recovered that amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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