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TMI Blog2013 (6) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... s called "General Sales Agents" (GSA)' have also been appointed to manage it affairs . The GSAs represent the appellant and handle its affairs at those locations for which they received commission from the appellant. 1.2 The appellant in terms of their agreement with various foreign parties send air crafts and components to them for repair for which the payment is made in foreign currency by the appellant. 1.3 According to the department, the appellant have received the service of repair and maintenance taxable under Section 65(105)( zzg ) read with Section 65(64) from the offshore service providers and have also received the service of the business auxiliary service taxable under (65)(105)( zzb ) read with Section (65)(19) of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taxable under the provisions of Section 66A of Finance Act, 1994 read with Rule 2(1)(d)(iv) of Service Tax Rules, 1994, that as regards the service received from General Sales Agent, the same is also not taxable in India, as the services of the GSA have been received by the appellant's branches located outside India, that in this regard he relies upon the judgement of the Tribunal in the case of Rajesh Exports Ltd. reported in 2013 (29) STR 147 (Tribunal-I), wherein it was held by the Tribunal that that the service of Lead Manager to an issue provided in United Kingdom for raising funds by issuing foreign convertible bonds were received outside India and, therefore, were not liable to service tax in India under reverse charge mechanism, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by reiterating the findings of the Commissioner in the impugned order and pleaded that the services of repair and maintenance of aircraft engines and components are taxable under Section 65 (105)( zzg ) read with Section 65(64) of the Finance Act, 1994 and since the same have been provided by the offshore service provider and have been received by the appellant in India, the appellant as service recipient would be liable to pay service on the same in terms of Section 66A read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 of Finance Act, 1994, that there is no merit in the appellant's contention that the service was provided wholly outside India, as in terms of the appellant's agreement with the foreign service providers, the foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f pre-deposit. 5. We have considered the submissions from both the sides and perused the records. There are two components of the service tax demand against the appellant. The first component of demand of Rs.49.95 crores is in respect of repair and maintenance service and the second component of the demand of Rs.15.53 crores is in respect of service of General Sales Agents. 6. Coming to the service tax demand of Rs.49.95 crores in respect of the maintenance and repair received from the offshore service providers, this service is covered by Section 65(105)( zzg ) read with Section 65(64) of the Finance Act, 1994. There is no dispute that this service has been provided by the offshore service providers. The point of dispute in as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant in various foreign territories for the services received by them. On perusal of the relevant clauses of the appellant's agreements with the GSAs as, reproduced in the impugned order, we are of the prima facie view that the services provided by the GSA to the appellant are covered by the definition of business auxiliary service as given in Section 65(19) of the Finance Act, 1994, as the GSAs appointed by the appellant not only represent the appellant abroad and provide various services on their behalf they also promote the sales of the services being provided by the appellant by undertaking various sales promotion activities. Since this service has been used by the appellant in India in relation to their business located, in India in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his, keeping in view the provisions of Section 35F of the Central Excise Act, 1994, as made applicable to the Service Tax matters by Section 83 of Finance Act, 1994, while considering the waiver from the requirement of pre-deposit, the interests of the revenue have also to be kept in mind. 10. Taking into account overall facts and circumstances of the case, we, therefore, direct the appellant to deposit an amount of Rs.8 Crores within a period of 8 weeks from the date of this order. On deposit of this amount within the stipulated period, the requirement of pre-deposit of balance amount of service tax demand, interest thereon and penalty shall stand waived and recovery thereof stayed till the disposal of the appeal. Compliance to be report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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