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TMI Blog2012 (8) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... der. 2. The brief facts of the case are that the respondents are engaged in procuring orders for their parent company located in Germany for installation of printing machinery and maintenance of such machinery during the warranty period. During the course of audit, it was found that the respondents were availing services of their parent company for training of their employees outside India as well as in India. Therefore, they were required to pay service tax under the reverse charge mechanism under the category of commercial coaching and training services . Show cause notices were issued. Demands were confirmed invoking the extended period of limitation and thereafter the respondents filed appeals before the Commissioner (Appeals) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards travel and accommodation expenses. In view of the same, the first appellate authority has rightly dropped the proceedings against the respondents. Therefore, the impugned orders be set aside. 3. Heard both sides. Considered the contentions and perused the impugned order. In the impugned order, the first appellate authority has discussed all the issues in detail and observed as under :- It is an admitted fact that the appellant had filed returns for the relevant period. When the returns are filed regularly, it cannot be considered as suppression of facts as the Department is aware of the activities of the appellant. The Hon ble Tribunal in the case of M/s.Panem Castings Pvt. Ltd. (2006) TIOL 1001 has held that extended period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviders and also the sample invoices were submitted by the appellant. After going through the documents the lower adjudicating authority had observed vide para.13 of the order that the assessee has not furnished schedules dealing the entire expenditure incurred by them in foreign exchange covering the period of demand which goes to indicate that the entire expenditure is not relating to air travel, food or accommodation . I find force in the argument of the appellant that just because the invoices for the entire demand period was not submitted, it cannot be assumed or concluded that the amount for which the invoices were not submitted pertains to training fees. I also find that the lower Adjudicating Authority had failed to substantiate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India) Rules 2006 pertains to services partly rendered in India as the very name of the Rules suggests. Moreover, the Lower Adjudicating Authority had failed to prove that the taxable service was partly rendered in India. In the absence of any such proof, I am inclined to accept the contention of the appellant that the expenditure incurred by the appellant is only towards Air travel, accommodation etc. and not the training fee as alleged by the Department. Moreover, the foreign company had issued certificate to the extent that they had not charged any fee for the course imparted. In the absence of any consideration, demand of service tax does not arise. 4. We have gone through the impugned orders. In the impugned orders, the first ..... X X X X Extracts X X X X X X X X Extracts X X X X
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