9911796707
TMI Blog2019 (2) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in India and is liable to pay the service tax. Once appellant is discharging the said liability he is entitled for the credit disallowing the same is therefore an error on the part o the adjudicating authority. Valuation - whether the value in balance sheet or the one in service tax return for the impugned period is to be taken for assessing liability? - Held that:- Section 67 of the Act acquires relevance which described valuation of the taxable service. In accordance thereof, such value has to be the gross amount charged, though this liability is fixed on the service provider but in the light of the provisions and in the given facts of the present case, it is apparent that service provider being outside India, it is recipient who i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follows: That the appellant, M/s Aviva Life Insurance Co. India Limited are registered with Service Tax Division, Phase-V, Gurgaon for rendering of Insurance Auxiliary Services, Re-insurance Premium, Life Insurance Services, Business Auxiliary Services and Management of Investment under ULIP Services. The appellant have also been availing cenvat credit on the input services for providing the aforesaid output services. During an audit conducted from 03.12.2009 to 08.12.2009 covering the period 2008 2009 Department noticed that the appellant has been receiving services under Business Auxiliary Services, Re-insurance Premium from foreign based service provider. Though, has paid the service tax thereon but the assessable value was noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of service, difference between balance sheet and service tax return per se does not reflect short payment. The allegations in the show cause notice are therefore erroneous and confirmation of demand based thereupon may be set aside. Appeal is accordingly prayed to be allowed. 5. Ld. AR per contra, has justified the order submitting that the adjudicating authority below has taken into consideration the relevant provisions of the Finance Act and also of the Service Tax Rules. Even the relevant circular has been taken into consideration. He has confirmed the demand with a speaking order. Impressing upon that there is no infirmity in the impugned order, appeal is accordingly prayed to be rejected. 6. After hearing both the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service in India, and accordingly all the provisions of this Chapter shall apply; Provided that where the recipient of the service is an individual and such service received by him is otherwise than for the purpose of use in any business or commerce, the provisions of this sub-section shall not apply: Provided further that where the provider of the service has his business establishment both in that country and elsewhere, the country, where the establishment of the provider of service directly concerned with the provision of service is located, shall be treated as the country from which the service is provided or to be provided or to be provided (2) Where a person is carrying on a business through a permanent establishme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson as if he is the person liable for paying the service tax in relation to such service. 7. On a conjoint reading of the above provisions and in the light of the fact that the Insurance Auxiliary Services Business Auxiliary Services are taxable under sub-clause (zx) and (zzb) respectively of clause 105 of Section 65 of the Act are received by the appellant and that these services fall under the category 3rd to Section 66A, the appellant being the service recipient of those services and being based in India and is liable to pay the service tax. Once appellant is discharging the said liability he is entitled for the credit disallowing the same is therefore an error on the part o the adjudicating authority. 8. Now coming to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the ambit of tax liability. However, the amount has to be reflected in the balance sheet. Thus, the reason is quite obvious for the difference in balance sheet as well as ST-3 return as far as the amount of salary is concerned. Further, with respect to expanses to travel abroad, the same are exempted if the expenses are made only for rendering the final output of the assessee. The adjudicating authorities have been silent about the scrutinizing such records and giving such finding as may establish as to whether the amount has been on these expanse is actually taxable or not. Similarly, for the expanses on medical check-up performed outside India for the policy holders located outside India. It was for the adjudicating authorities belo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
