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2015 (5) TMI 1016 - AT - Service TaxDemand of Service tax - Reverse charge mechanism on import of Business Auxiliary Service - Held that:- as per the agreement between appellant and M/s Wainwright Industries Inc., sorting is defined as inspection for good/bad determination of part status. Thus, it is obviously a process by which it was determined whether a part was good or bad and in case of a bad part it was required to be reworked. The other components of the service including rework also clearly fall within the scope of Business Auxiliary Service as defined under Section 65(19) of the Finance Act, 1994. Thus, it is a case of import of Business Auxiliary Service and the appellant is required to pay service tax under reverse charge mechanism. Best Judgment assessment - Section 72 of Finance Act, 1994 - Best judgement assessment done by adopting 100% increase year on year without any basis - Held that:- it is seen that the year on year growth from 2006-07 to 2007-08 was in the range of about 60% and that could be some reasonable basis for the purpose of best judgement assessment. However, not providing details in spite of repeated letters prima facie is an indication of suppression of facts. - Decided against appellant
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