GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (4) TMI 1077 - CESTAT NEW DELHI

2016 (4) TMI 1077 - CESTAT NEW DELHI - 2016 (46) S.T.R. 649 (Tri. - Del.) - Demand of Service tax - Consulting Engineering Services - Availed services of foreign consulting firm and paid technical know-how fee to the said service provider, which was a lump sum amount as also royalty paid for the licence to manufacturer the goods, which was based on the price of the final products - Held that:- on examination of the agreement entered into between the appellant and foreign service provider, we fai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

order of Commissioner (Appeals), which is challenged before us in the appellant's appeal is set aside. - As regards the Revenue’s appeal, it is found that the Commissioner (Appeals) has dropped the demand by relying upon the earlier decision of the Tribunal in the case of Navinon Ltd. Vs. CCE, Mumbai -IV [2004 (8) TMI 2 - CESTAT, MUMBAI]. The only ground for the Revenue to challenge the said part of the impugned order is that the Tribunal’s decision in the case of Navinon Ltd. has not been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. Union of India [2008 (12) TMI 41 - BOMBAY HIGH COURT], liability to pay service tax by any Indian recipient of the services from a foreign person would arise only w.e.f. 18.04.2006. Therefore, no tax liability can fall upon the appellant for the period prior to 18.04.2006. - Appeal disposed of - Service Tax Appeal No.794/2009 & Service Tax Appeal No.ST/171/2010 - Final Orders No. 51293-51294/2016 - Dated:- 7-4-2016 - SMT. ARCHANA WADHWA, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMBER (TEC .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ting firm, M/s. Kayaba Industries (P) Ltd., Japan. M/s. Escorts paid technical know-how fee to the said service provider, which was a lump sum amount as also royalty paid for the licence to manufacturer the goods, which was based on the price of the final products. The period involved in the present appeal is from September, 2000 to Feb., 2002. 3. Proceedings were initiated against the appellant by way of show cause notice dated 15.02.2005 proposing confirmation of service tax under the category .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mand on the lump sum payment made by M/s. Escorts to M/s. Kyaba is required to be confirmed under the category of Consulting Engineers. However, he further observed that inasmuch as M/s. Kyaba is located in Japan, the said service tax would be recovered by the Department from M/s. Escorts. We are informed that service tax liability of the said amount is to the extent of ₹ 42,000/- approximately. 5. In respect of the balance demand, he observed that inasmuch as the payment was on the basis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Second Proviso to Rule 6 of the Service Tax Rules, 1994:- Provided further that, that in the case of a person who is a non-resident or is from outside India, does not have any office in India and is liable to pay service tax on taxable services provided in India (i) The service tax thereon shall be paid by such person or on his behalf by any other person authorized by him, who shall submit to the Commissioner of Central Excise in whose jurisdiction the taxable services have been rendered, a retu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d is against M/s. Kyaba, who is located in Japan, and as such, does not fall within the jurisdiction of the Finance Act, 1994 but in absence of any appeal by M/s. Kyabad, we do not advert to the said legal position. However, Sl.No.1(i) to the said proviso provides for, recovery of the said dues from a person, who has been authorized by the foreign service provider. Both the authorities below have observed that it was the appellant, who received the services and as such, should be held liable to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ba. Admittedly, in terms of the above reproduced provisions, such authorization has to be specifically from the foreign service provider and cannot be fastened upon the Indian Service recipient by the Revenue. As such, we fully agree with the ld. Advocate that in absence of such authorization given by M/s. Kyaba, no liability would fall upon him. Accordingly, we set aside that part of the impugned order of the Commissioner (Appeals), which is challenged before us in the appellants appeal. Accor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version