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2016 (1) TMI 850 - AT - Service TaxTerritorial Jurisdiction - SCN issued by Mumbai Office of Service Tax Department for whole of India offices - assessee have separate registration for each premises - Import of service - payment made to foreign architects for service of concept design and interior decoration of their Multiplexes. - They also received 'Pouring Fees' and 'Signing Fees' - Held that:- The Commissioner should have refrained from adjudicating and instead could have initiated the process of making show cause notice answerable to the jurisdictional Commissioners or he should have written to the Central Board of Excise and Customs seeking power to adjudicate the case of services rendered pan India just as DGCEI has the power to issue the show cause notice on pan India basis. - the demand of ₹ 38,39,984/- is confirmed beyond the jurisdiction of the Commissioner and, is therefore, set aside as invalid. - Decided in favor of asessee. Import of services - 'pouring fees' and 'signing fees' - Held that:- clearly the service activity involved is not sale of space and time as contended by the appellant. What is sold is the right to advertise and promote the product of the CCIPL. Similarly right to use the Inox Logo, as contended by the Ld. Advocate is not the right that is under consideration before us. What is under consideration is the right to promote the product of CCIPL for which CCIPL pays fees to the appellant. It is beyond doubt, therefore, that that the services provided are covered under BAS. Appellant provided BAS to its client CCIPL on which tax is payable. However, we agree with the appellant that the service tax on import of 'Architect Services" attracts levy of service tax only from 18/4/2006 onward. We need not dwell on this issue that service tax on import of services is payable by the recipient of the service under Section 66 (A) only w.e.f. 1/5/2006 when the Section 66(A) was brought into effect. This is the settled legal position. Decided partly in favor of assessee.
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