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2018 (1) TMI 1174 - AT - Service TaxClassification of services - respondent had paid IPLC Charges to its parent company M/s CMG - the assessee classified under Lease Circuit Service whereas, the department was classifying the same under the Business Auxiliary Service - reverse charge mechanism - Section 66(A) of the Finance Act, 1994 - Held that: - the issue of taxability of IPLC service has been already decided by this Tribunal in the case of Infosys Ltd. [2014 (3) TMI 695 - CESTAT BANGALORE], where it was held that If the service has been rendered in USA or Canada received by the branch office of the appellant in USA or Canada and utilised by the branch office at USA or Canada and paid for out of the foreign exchange earned, unless the Revenue is able to show that the service has been received in India, or the benefit of service rendered abroad has been received in India, the tax, in our opinion, would not be payable - such services do not fall under the category of Business Auxiliary Services but falls under Telecommunication Service. Difference of Revenue between balance sheet and ST-3 - Held that: - the SCN has simply taken the difference between ST-3 Return and balance sheet and prepared a table without offering any explanation or basis as to how the demand had arisen for different periods and services. Demands appears to have been calculated the service tax in the SCN without doing any investigation or analysis of relevant documents or co-relation with the refunds taken by the respondent. Admittedly, the respondent are eligible for refund of the service tax on quarterly basis and turnover is certified by statutory auditors as has observed by the Ld. Commissioner - demand set aside. Management Consultancy Service - other expenses - includibility - Held that: - no findings have been given in respect of dropping of demand of ₹ 13,81,818/-, which was raised as part of total demand in show cause notice dated 29.03.2011. In the absence of clear findings on other expenses, the matters required to be remanded back to the adjudicating authority for passing a fresh order, after re-examining the demand of other expenses and management consultancy raised in show cause notices dated 19.10.2011 and 17.11.2011 - matter on remand. Appeal allowed in part and part matter on remand.
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