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2015 (5) TMI 741 - CESTAT NEW DELHI

2015 (5) TMI 741 - CESTAT NEW DELHI - 2015 (40) S.T.R. 525 (Tri. - Del.) - Waiver of pre deposit - Business Auxiliary Service - Reverse charge mechanism - Revenue neutrality - Held that:- CAI were providing the services to the customers of the appellants as per the agreement between CAI and the appellants and the payment for the same was made by the appellants to CAI. Thus, CAI was engaged in providing services in relation to provision of service on behalf of client which in this case is the app .....

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that the appellants were receiving services from CAI in relation to "Technical Testing and Analysis" because nothing belonging to appellants was subjected to technical testing and analysis. - unable to locate any statutory or constitutional provisions which support the notion that in case of revenue neutrality the liability to tax abates. Further whether there has been wilful mis-statement or suppression of facts on the part of appellants is to be determined with reference to the facts and circ .....

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The Stay Application along with Appeal has been filed by the appellants against Order-in-Original No.73/Commissioner/Noida/2013-14, dated 27.03.2014 in terms of which the service tax demand of ₹ 6 ,54,64,554 /- has been confirmed for the period October, 2007 to March, 2011 (along with interest and penalties) under the category of Business Auxiliary Service (BAS) under reverse charge mechanism. The facts of the case are that the appellants were purchasing services from M/s. ConvasM America .....

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provider and billing/collection service provider and for rendering Services for development of software on a non-exclusive basis in USA and which appointment CAI has accepted. (iv) Appellants will be entering into contracts with the customers based in USA for development/modification of software and other related services to the customers based in USA. (v) CAI in certain cases may enter into contracts in its own name with the customers based in USA while rendering the agreed services to the app .....

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dicating authority held that CAI was doing the provision of service on behalf of the appellants and therefore it was a case of import of service classified under BAS and therefore the appellants were required to pay the impugned service tax under reverse charge mechanism in terms of Section 66A of Finance Act, 1994. 2. Ld. counsel for the appellants strenuously argued that the services received by them from CAI were not BAS but were "Technical Testing and Analysis" service and therefor .....

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nded period could not be invoked. The ld. Departmental Representative on the other hand argued that the services received are clearly covered under the definition of Business Auxiliary Service. 3. We have considered the contentions of the appellants. In the present case, it is seen that CAI were providing the services to the customers of the appellants as per the agreement between CAI and the appellants and the payment for the same was made by the appellants to CAI. Thus, CAI was engaged in prov .....

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e are not able to accept this view. If this view is accepted it implies that the sub-contractors are rendering services indirectly to M/s. NTPC and that these sub-contractors are receiving payments indirectly from M/s. NTPC. The activities undertaken by the sub-contractors, in our considered opinion is only site formation services. These services have been rendered to the main contractors NBCC who are responsible to M/s. NTPC. If at all there is any doubt it could be whether the services rendere .....

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