2023 (3) TMI 577 - AT - Service Tax

Non/short payment of service tax - advertisement expenses incurred by the local franchisees - non-payment of service tax on management consultancy services by wrongly claiming the same as ‘export service’ - Interest on late payment of service tax on franchisee fees to McDonald’s USA - HELD THAT:- In the instant case it has been stated by the appellant that the appellant had filed an application with the Reserve Bank of India on 17 August, 2021 for granting permission for adjustment of the receivables. In response to the request made, the Reserve Bank of India accorded the approval and the appellant made the remittance of the net amount of Rs. 3,38,13,31,677/- to McDonald’s Corporation USA on 30 March, 2022.

The impugned order in so far as it seeks to confirm the demand of service tax in regard to the first issue, namely non-payment of service tax on advertisement expenses incurred by franchisees deserves to be set aside.

Non-payment of service tax on ‘management consultancy’ services by wrongly claiming the same as export service - HELD THAT:- The matter needs to be remitted to the Commissioner to pass a fresh reasoned order in the light of the observations made above and the additional facts brought to the notice of the Tribunal by the appellant.

Appeal allowed in part and part matter on remand.