TMI Blog2014 (1) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The original authority ascertained the demand of tax after allowing abatement of 67% under the Notification No. 1/2006 dated 1.03.2006, on the invoice value of the printing machinery. The Commissioner (Appeals) upheld the order of the adjudicating authority. 2. The Ld. Advocate submits that explanation (1) of Sub-section 2 of Section 66A of Finance Act, 1994 provides 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. He drew the attention of the Bench on Board's Circular dated 01.12.08, wherein it is clarified that the word country" would include India. He submits that the applicants have received the service through the agency of the foreign sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh a permanent establishment in India and through permanent establishment in a country other than India, such permanent establishments shall be treated as separate persons for the purposes of this section. Explanation 1. 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. Explanation 2. Usual place of residence, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted." 5. CBEC vide Circular dated 01.12.2008 on Frequently asked questions (FAQ) on Service Tax clarified as under:- "14.2. Is the recipient of service liable to pay tax for the taxable service is provided from outside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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