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M/s. GKN Sinter Metals Pvt. Ltd. Versus Commissioner of Central Excise, Pune-1

2015 (10) TMI 2159 - CESTAT MUMBAI

Liability of Service Tax – Management and Business Consultancy - Appellant discharged liability along with interest; penalties pleaded to be set aside – Further contended that appellant can avail CENVAT Credit and liability needs to be discharged under Reverse Charge Mechanism – Held That:- Services received by appellant from their associates was utilized for manufacturing of final products have been discharged off the central excise duty - Appellant could have taken credit of service tax paid u .....

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R Per: M.V. Ravindran This appeal is directed against Order-in-Original No. PI/COMMR/ST/27/2011 dated 18-10-2011. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding the service tax liability which has not been discharged by the appellant in respect of services received by them from their associate companies situated abroad for advice received in the area of operations, purchasing, quality, sails and commercial, human recourses, finance, marketing, supply .....

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n praying for setting aside the penalties imposed by the adjudicating authority. She would submit that the appellant had not discharged the service tax liability but is eligible to avail the cenvat credit of such service tax paid by them. She would submit that the service tax liability needs to be discharged by the appellant under Reverse Charge Mechanism and there is no dispute that appellant is utilizing the advice from their associates for manufacturing of products in their factory and also p .....

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e service tax liability and interest thereof during the proceedings before the lower authorities and such service tax liability has arisen of the appellant under reverse charge mechanism as provided under section 66A of the Finance Act, 1994. We find strong force in the contention raised by the learned counsel as to there was no intention to not to discharged the service tax liability, in as much that the services which was received by the appellant from their associates was utilized for manufac .....

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Steel Ltd. had availed External Commercial Borrowings to the extent of US $ 120 million, $ 70 million and $ 190 million in Nov 2006, Feb 2007 and Sep 2007 respectively from non-resident lenders, who do not have any office in India and had paid certain fees/charges for arranging ECB. There is no dispute that the service received by the appellant is classifiable under the category of Banking and other Financial Services and appellant is liable to pay the service tax. The DGCEI called for details .....

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cate, Shri V.K. Jain on behalf of appellants submitted that the factory is located in Hazira, Surat and transaction relating to ECB was handled only by the headquarters of the company in Bombay and because of lack of coordination between the two offices, the omission to pay service tax occurred. He also submitted that the levy was also a new levy. Further, he submitted that there is no reason for them not to pay the service tax since as soon as they pay the service tax they were entitled to Cenv .....

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also cited decision of the Hon ble Supreme Court in the case of Coca Cola India Pvt. Ltd. reported in 2007 (213) E.L.T. 490 (S.C.) in support of his contention that when the exercise is Revenue neutral, no purpose would be served in going into classification and other issues. He submits that this case is very relevant to the issue. On the other hand, ld. SDR on behalf of the Revenue submits that Revenue neutrality is not only criterion and what is required to be looked into is liability. He als .....

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