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2018 (2) TMI 1408 - AT - Service TaxLiability of service tax - Business Auxiliary Service - reverse charge mechanism - expenditure incurred by the appellant in setting up of certain branch offices in foreign countries like Bangladesh, Ukraine etc. - Held that: - similar dispute came before the Tribunal for tax liability under the very same tax entry in Torrent Pharmaceutical Ltd. [2014 (12) TMI 41 - CESTAT AHMEDABAD]. The issue of the expenditure incurred by the appellant with reference to the branch office located abroad, which was involved in activities, which may fall under business auxiliary service was considered by the Tribunal - the legal fiction of considering a branch of an assessee as a separate establishment is not to tax a service rendered to its head office. Further, here there is no such service also has been identified with supporting evidence - the tax liability under BAS cannot be sustained. Liability of service tax - advertising services availed by the appellant in pursuance of contract with various foreign service providers who advertised and promoted the product of the appellant in foreign countries - reverse charge mechanism - Held that: - It is clear that statutorily such services are considered for taxation based on the location of the service recipient. Such being the clear position as per law in the present case the services being utilized by the appellant as a manufacturer of the said goods, which are exported and marketed in the places where the advertisement are held, the tax liability on such services are correctly made against the appellant on reverse charge basis - extended period and penalty cannot be imposed. Appeal allowed in part.
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