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TMI ID= 271987
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2016 (2) TMI 692 - AUTHORITY FOR ADVANCE RULINGS

M/s Steps Therapeutics Ltd, Hyderabad Versus Commissioner of Customs, Central Excise And Service Tax, Hyderabad-IV

Application for advance Ruling - Revenue takes objection to the admissibility on the ground that it is not a proposed activity as covered under Section 96(D), since the company is incorporated on 18.11.2011 and has been filing the Income Tax as well as Service Tax Returns from time to time during all these years. According to the Department, therefore, this is not a proposed activity. The second objection raised by the Revenue is that there is a sister concern of the applicant which shares with the applicant an e-mail addresses as also the postal address and in case of that concern, some orders have been passed by the Service Tax Authorities. The Department, therefore, says that even on the second point, the application can not be admitted. - Taxability of activity of services for rendering analysis of the drugs and market survey etc.

AAR rejected both the contentions and admitted the application for consideration.

No.- Misc. Order No. AAR/ST/12/2016, Application No. AAR/44/ST/13/2015

Dated.- February 5, 2016

Citations:

  1. M/s GSPL INDIA TRANSCO LIMITED Versus UNION OF INDIA - 2012 (8) TMI 753 - Gujarat High Court

  2. In Re : M/s GSPL INDIA TRANSCO LTD AND M/s GSPL INDIA GASNET LTD - 2015 (7) TMI 825 - Advance Ruling Authority

S. S. Rana, Member (R), V S Sirpurkar (Chairman) And R S Shukla, Member (L)

For the Applicant : Shri Kishore Kunal, Adv., Shri Tarun Gulati, Adv

For the Respondent : Shri Govind Krishna Dixit, Departmental Representative

RULING

We have heard Shri Kishore Kunal, the learned counsel for the applicant and Shri Dixit for the Department. The applicant has raised the questions in respect of the 'proposed services' that the applicant proposes to offer to its foreign clients. Those services will be regarding the analysis of the drugs and market survey etc.

2. The Revenue takes objection to the admissibility on the ground that it is not a proposed activity as covered under Section 96(D), since the company is incorporated on 18.11.2011 and has been filing the Income Tax as well as Service Tax Returns from time to time during all these years. According to the Department, therefore, this is not a proposed activity. The second objection raised by the Revenue is that there is a sister concern of the applicant which shares with the applicant an e-mail addresses as also the postal address and in case of that concern, some orders have been passed by the Service Tax Authorities. The Department, therefore, says that even on the second point, the application can not be admitted.

3. It is pointed out by the learned counsel for the applicant that though the applicant has been filing Returns from time to time but there is no activity whatsoever. In the sense that, in both the Returns i.e. before this Service Tax Authority and before the Income Tax Authorities, it is showing zero income meaning thereby that the applicant had not commenced any activity whatsoever. The applicant has also come out with the copies of the Returns and a clear-cut statement in reply to the Department's objections to this effect.

4. As regards the other objection regarding sister concern, the learned counsel relies on the Gujarat High Court Judgment reported in 2013 (i.e. No. 32 STR- 271(Guj)/2013) wherein precisely the same point has been considered by the Hon'ble High Court. In fact, the learned counsel also relies on the ruling of this very Authority given in GSPL India Transco Limited in 2015 (i.e. No. 40 STR-393/2015(AAR) where an identical question has been considered. In view of that, we would choose to admit the application.

 
 
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