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2011 (3) TMI 315 - HC - CustomsPre-deposit - By a show¬cause notice dated 14¬05¬2004, the Office of the Commissioner of Customs & Central Excise, Aurangabad called upon the petitioner to show-cause as to why the petitioner should not be held liable for service tax for receiving technical services on payment of US$ 45 million in instalments as per TTA dated 01-10-2001 - Cost sheet relating to imports found during the course of search shows that US$ 1000 has been shown as lumpsum payment - Once that amount is capitalized while allocating depreciation for the purpose of costs of the car assembled, automatically the amount paid towards TTA gets allocated to a car - As regards the financial hardship, the Tribunal took note that the petitioner had cash and bank balance of more than Rs.127 crores as on 31¬12¬2009 and sundry debtors had to pay about more than Rs.75 crores Similarly, the argument that the petitioner is entitled to CVD amounting to Rs.38.5 crores and, therefore, the petitioner cannot be subjected to pre¬deposit is also unacceptable, because, taking credit would arise only when the duty is paid - n the present case, it is the case of the Revenue that the amount of US$ 45 million paid to Skoda under the Technology Transfer Agreement was in fact part of the value of 45,000 car kits supplied by Skoda to the petitioner from time¬to¬time and that amount has been recovered from the customers by adopting different accounting methods - The writ petition is dismissed - However, the time to deposit the amount of Rs.30.00 crores is extended by further period of six weeks from today
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