TMI Blog2015 (1) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal. - Following decision of SUN MICROSYSTEMS (I) PVT. LTD. Versus COMMISSIONER (LTU), BANGALORE [2013 (12) TMI 867 - CESTAT BANGALORE]. Management or business consultant services - Held that:- there is no finding as to what exactly is the service received by the appellants for which they have made the payment. It was the appellant s claim that according to US GAAP requirements, when a company has subsidiaries elsewhere, the time spent for activities relating to subsidiaries has to be allocated and subsidiaries are also required to allocate payment for such time spent. He says, to fulfill this requirement, the appellant makes credit entry as per the requirement and simultaneously a debit entry is also made and in reality no payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aper based tests for institutions or organizations who wanted to assess the English knowledge and skill levels of their students or employees. The nature of products provided by the appellants are briefly summarized as under:- Products Nature Sold in the form of Criterion Online Writing Evaluation; TOEFL Practice Online (TPOs); Idioms Pronunciation; Evaluation software to assess the English language listening comprehension, vocabulary and speech. CD as well as online through a user id and password TOEFL ITP tests; TOEFL Pilot 2007; TFI (TOEIC in French); TOEIC tests ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir principal abroad amounts to payment for services received and taxes payable on the same. 3. Learned counsel submits that the amounts demanded on materials relating to evaluation tests of English language, understanding etc. cannot be considered as commercial coaching or training service. He submits that there is no contact between the coaches/teachers/trainers and the individuals in this case at all. Appellants sell materials either in physical form or in CD form or online and the purchasers are required to use the same and improve their skills. Even though the learned AR drew our attention to the paragraph in the OIO where Commissioner has taken a view that the modules and the software provided by the appellants and online assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time spent for activities relating to subsidiaries has to be allocated and subsidiaries are also required to allocate payment for such time spent. He says, to fulfill this requirement, the appellant makes credit entry as per the requirement and simultaneously a debit entry is also made and in reality no payment is actually made. He drew our attention to the relevant ledger entries and we find this to be so even though it looks very strange that there is a credit and debit entry simultaneously at the same time for the same transaction and according to the appellants there is no payment made for the time of the company in US. Nevertheless, in our opinion this may not be very relevant in view of the fact that in the impugned order, we do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontended by the notice that as per para 3 of SCN, it is mentioned that another entry for Intercompany Revenues apart from Inter branch expenses is appearing in 2008-09 for the same amount and that Service Tax is demanded only on Inter-branch expenses and not against Inter Company revenues. Evidently, the contention of the notice is to merely obfuscate the issue on hand. The allegation in the show cause notice is that the notice incurred certain expenditure for receipt of Consultancy Services from their holding company situated outside India for promoting and propagating the business of ETS World besides managing the affairs of their holding company, in India and the same was shown as expenditure in their books of accounts thus liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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