9911796707
TMI Blog2018 (8) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was revealed that the appellants had received taxable services from various foreign service providers but had not paid service tax on such services under reverse charge mechanism. Show Cause Notice was issued proposing to demand the service tax along with interest and also for imposing penalties. After due process of law, the Original Authority confirmed the demand along with interest and also imposed penalties. Aggrieved, the appellant is now before the Tribunal. 2.1 On behalf of the appellant, Ld. Counsel Shri. Santhana Gopalan D. appeared and argued the matter. He submitted that the appellant was incorporated in India only on 01.05.2008. The appellant is a Joint Venture Company with 75% shareholding by M/s. Renold International Hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax under Section 66A is only by the service recipient only. In the present case, M/s. RIHL which is a foreign company has received the services from the service providers and not the appellant. The contract for services were entered into by M/s. RIHL and the service providers. The payment of consideration was also made by M/s. RIHL and therefore, the Department cannot demand service tax merely because the amount has been debited in the books of the appellant. 2.5 It is also argued by him that the demand is raised invoking Rule 5(1) of the Valuation Rules and that, in any case, this amount has to be considered as a reimbursable expense and is not leviable to service tax, as decided by the Apex Court in the case of Union of India Vs Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .K. 1,01,753.50 84,25,189.8 2. Eversheds, U.K. 1,11,533.73 92,34,992.844 3. Fox Mandal & Co., India 3,32,762 2,75,52,693.6 4. Agilisys, U.K. 7,000 5,79,600 TOTAL 5,53,049.23 4,57,92,476.24 5.2 A letter dt. 08.02.2008 issued by one of the service providers, M/s. Ernst & Young, U.K., is placed as part of the appeal records. It is categorically stated in this letter that the services are provided by them to M/s. RIHL (the foreign company) with regard to the overall due diligence in connection with the proposed acquisition of industrial chains business of M/s. LGB. In the very same letter, it is agreed that the fees has to be paid by M/s. RIHL to M/s. Ernst & Young. It is very much clear from the records that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
