TMI Blog2014 (9) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... deration for the services rendered is received in convertible foreign exchange subject to the condition that the export proceeds are not repatriated from India - On perusal of the balance-sheet of the appellant company, it is seen that appellant earns income not only from steamer agent’s services but also from various other services such as container freight, equipment maintenance and repair, service-centre income, detention/collection fees, crew fees and so on. They have also earned income by way of interest on loans/deposits and also rental income - After deducting the expenses from the income, profit is arrived at and dividend is declared out of profits. In other words, the dividend declared is not only from the income earned from steame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , dated 9-4-99 and 21/2003-S.T., dated 21-11-2003. Accordingly, a Service Tax demand of ₹ 18,55,51,047/- was confirmed against the appellant for the period 1-1-2000 to 14-3-2005 (excluding the period between 1-1-2003 to 19-11-2003). Apart from the above, interest was also confirmed in addition to imposition of penalties. 3. The learned Counsel for the appellant submits that repatriation of dividends to the equity holder situated at abroad does not amount to repatriation of proceeds from the export transaction. Since the export proceeds have been realized for the services rendered in convertible foreign exchange, the transaction is exempt from Service Tax under the Notifications (cited supra). It is also urged that appellant company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vertible foreign exchange. Vide Notification Nos. 6/99-S.T. and 21/2003-S.T., Service Tax levy has been exempted if consideration for the services rendered is received in convertible foreign exchange subject to the condition that the export proceeds are not repatriated from India. 5.2 On perusal of the balance-sheet of the appellant company, it is seen that appellant earns income not only from steamer agent s services but also from various other services such as container freight, equipment maintenance and repair, service-centre income, detention/collection fees, crew fees and so on. They have also earned income by way of interest on loans/deposits and also rental income. 5.3 After deducting the expenses from the income, profit is arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This submission made by the ld. SDR and the conclusion reached by the lower authorities needs to be deprecated for more than one reason. The amounts which have been given by the appellant for parent company is in form of dividend, which is for the shares held by the parent company in the appellant s company. It is a common knowledge that dividend is paid to the shareholders only if there is disposable profit. It is common knowledge that profit of the company is arrived only after the entire income and expenditure is accounted for and when there is income over the expenditure. It cannot be, by any stretch of imagination, held that the amounts which have been received by the appellant in convertible foreign exchange for the market research co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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