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2014 (1) TMI 1420 - AT - Service TaxWaiver of pre deposit - Demand of service tax - Reverse charge mechanism - Abatement of 67% under the Notification No. 1/2006 dated 1.03.2006 - Erection, Commissioning and Installation - Held that: - On perusal of the explanation (1) of Section 66A (2) of the said Act and the Board's clarification, it is clear that a person carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country, which would include India. On perusal of the impugned order, we find that the foreign company in this case rendered the service of erection, commissioning and installation through their agency in India and the identity of such agency had already been mentioned in the impugned order. In our considered view, prima facie, we find that the foreign company had undertook the erection job through their agency in India and therefore demand of tax under Section 66A is not sustainable. Apart from that, we have noticed the erection, commissioning and installation charges are part of the invoice price of the printing machinery, wherein the applicants paid the customs duty. Hence, the applicants have made out a prima facie case for waiver of predeposit of the entire amount of tax including interest and penalty - Stay granted.
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