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2018 (7) TMI 181 - AT - Service TaxBusiness Auxiliary Services - Technical assistance and marketing services - marketing services - promoting the products of WGS in the markets in India - Held that:- The onus is upon the Department to satisfy us that the services of the appellant in three of the cases falls within the expressed ambit of the definition of Business Auxiliary Services - in the facts of present case, the GDPL is providing service to the appellant while manufacturing the product under the brand name of the appellant. While providing any technical know-how, the specifications, marketing strategies and even providing promotional services to GDPL, appellant is actually providing those services to self, the product marketed being the product of the appellant itself. GDPL is merely a Contract Bottling Unit (CBU) - The services rendered by the appellant were rendered to self. The same cannot be categorised as Business Auxiliary Service. Promotion and marketing services - the appellant has agreed for providing inter-alia promotion, marketing and even customer care services for which the appellant even has received certain consideration - Held that:- Every intention and purpose of the agreement of appellant with WMIL is centred to market the product of affiliate and sale thereof for which the promotion and marketing activities are centered essentially to be carried out without which business of WMIL could not sustain. Such activities are essentially being envisaged under Business Auxiliary Services - The impugned order has rightly considered the agreement of appellant with WMIL as an agreement for providing Business Auxiliary Services - demand upheld. Agreement with WGS for promoting the products of WGS in the markets in India - WGS is an entity based outside India - Held that:- Though the appellant were providing marketing and promotional services to them but the recipient being abroad, the appellant were receiving remuneration in convertible foreign exchange from WGS - There has been a Notification No. 6/99 dated 09.04.1999 providing exemption to taxable services where consideration was received in convertible foreign exchange. Though this exemption was withdrawn vide another Notification No. 2/2003-ST w.e.f. 01.03.2003, but subsequently vide Notification No. 21/2003 – ST dated 20.11.2003, the exemption was restored - demand set aside. Extended period of limitation - penalty - Held that:- The Department has not produced any such evidence on record which may suggest that appellant has acted with an intent to evade payment of tax. Hence, there was no justification by the Department to invoke the extended period of five years while issuing the Show Cause Notice - The only taxable service in the category of Business Auxiliary Service has been observed to have been rendered by the appellant to WMIL, but the period of demand thereof is w.e.f. July, 2003 to June, 2004. The Show Cause Notice is dated 09.02.2007. Hence, the demand is beyond the period of one year and as such is held not sustainable. Appeal disposed off.
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