9911796707
TMI Blog2013 (8) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... certain investigation conducted by the department, Revenue found that they were not paying service tax in respect of certain remittances made by them to their agents abroad. After investigation, Revenue was of the view that these remittances were in respect of Ship Management Services, Maintenance and Repair Service, Technical and Analysis Service, Business Auxiliary Service and Business Support Service made taxable under Finance Act, 1994 which services they had received from persons located abroad and therefore they should have paid service tax as recipient of service as per the provisions of section 66A of the Finance Act, 1994. Based on such argument, four show cause notices were issued and adjudicated resulting in confirmation of a dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified so, the valuation thereof is not done properly because the agent abroad has not really got the said money and the money has been paid by the agent to the staff of the appellant or spent by the agent in relation to living expenses of the applicant's staff. 5. In the case of Business Auxiliary Service, the demand is in respect of services rendered by the agents abroad for canvassing cargo for space available on the ship. According to him, this service is not received in India and this is an activity rendered outside India and cannot be made taxable under the Finance Act, 1994. However, he agrees that this service is classifiable under sub rule (iii) of Rule 3 of Taxation of Services (Provided from Outside India and Received in India) R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority it was submitted that the crew belonged to the appellant and it was only a case of routing of payments of salaries to the crew or any other payment made in respect of such crew and not in respect of crew arranged by the person abroad. Further even if it is in respect of his own crew victualling (providing of food) is a taxable service when provided by another person abroad. He points out that the entire defence before the lower authority was on the ground that the service was provided abroad. 9. Ld.AR submits that the activity done by the applicant as recorded and described in para7.0and 7.1 of the Show Cause Notice dated 24-04-2009 are squarely covered by the definition of the said service and taxable. 10. In relation to the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the recipient of service and not based on the place of performance of service. In the matter of time-bar, we find that applicant has never come forward before the department seeking any clarification in the matter on their expenditure and the whole matter has been unearthed only through investigations done by the department and therefore contention of the advocate on time-bar cannot be primafacie accepted. We have also considered the argument on financial hardship. We find from the cash flow statement as on date 31.3.2013, there are liquid assets worth about Rs.39 crores. Cash balance of a particular day is not relevant to assess capability to pay tax. Tax due to government also needs to get some priority for payment-at least it shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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