TMI Blog2014 (1) TMI 1509X X X X Extracts X X X X X X X X Extracts X X X X ..... ices are for the same period and on the same ground. Therefore for the said purpose we find prima facie merit in the contention of the applicant. In respect of other show-cause notices after taking into consideration of the amounts paid as commission as shown in the balance sheet comes to approximately Rs. 1 lakh. In respect of show-cause notice for the demand of Rs. 1,89,22,265/- we find that the applicants had not make out a case for waiver - Conditional stay granted. - ST/520/12-Mum - - - Dated:- 7-10-2013 - S S Kang And P K Jain, JJ. For the Appellant : Shri A R Krishnan, CA. For the Respondent : Shri Premanand Das, Commissioner (AR) PER : S S Kang Heard both sides. 2. The applicant filed this application for total w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were sent to Dubai. The demand is confirmed on the basis of payments made by their Dubai office. The revenue has not taken into consideration the figures mentioned in the balance sheet in respect of the commission paid. If the Revenue has taken into consideration the commission paid by the Dubai office, the amount in the show-cause notices 3 and 4 comes to approximately Rs. 1,00,000/-. 3.2 On merits the contention of the applicant is that the applicant is liable to pay no service tax on "Reverse Charge Mechanism" as the Dubai branch is an independent permanent establishment and the Dubai office has received the services of foreign service provider and also made payment in that regard. As the service provider and the receiver both are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 66A of the Finance Act. In respect of duplication of demand in the show-cause notices 1 and 2, the Revenue relied upon the findings of the lower authorities. 5. The main contention of the applicant is that he applicant had not received any service from the foreign service provider. The service was received by their Dubai office and payments are also made by the Dubai office. The contention of the applicant is that as the Dubai office is a permanent establishment therefore dealing with Dubai office and the foreign service providers cannot be taxed under the reverse charge mechanism and the liability cannot be fixed on the applicant. 6. We find that the demands under four show-cause notices are confirmed on the ground that the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly concerned with the provision of service is located, shall be treated as the country from which the service is provided or to be provided. (2) Where a person is carrying on a business through a permanent establishment in India and through another permanent establishment in a country other than India, such permanent establishments shall be treated as separate persons for the purposes of this section. Explanation 1.-A person carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country. Explanation 2.-Usual place of residence, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted. 6.1 We find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India and receiving service form foreign service provider in respect of sale and promotion of the product in manufactured in India. 6.3 With regard to the contention that there is a duplication of demand in respect of show-cause notices 1 and 2, we find that both the show-cause notices are for the same period and on the same ground. Therefore for the said purpose we find prima facie merit in the contention of the applicant. In respect of other show-cause notices after taking into consideration of the amounts paid as commission as shown in the balance sheet comes to approximately Rs. 1 lakh. In respect of show-cause notice for the demand of Rs. 1,89,22,265/- we find that the applicants had not make out a case for waiver as stated in para 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
