9911796707
TMI Blog2016 (5) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... enue has challenged the adjustment of Service Tax payable on import out of that paid on the output service, The appellant-assessee has challenged the classification of the import service and sought its classification under Management, Maintenance and Repair service. 2. The facts, in brief, are summarized below. The appellant-assessee is a service provider who imported, on several occasions, Digital Control Software (DCS) from M/s.Minerals and Metals, FIE, Jabel Ali, Dubai. The appellant-assessee carried out repairs to imported software to make the software usable for their customers in India and supplied the same to their local customers. The view taken by the Commissioner in the impugned order was that the software imported by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as alleged in the SCN. Further, he also held that appellant-assessee is to be considered as a proprietary concern of Shri R. Shanthakumar and that the service tax paid in the accounts of (1) M/s.Android Automation as well as (2) M/s.eClouds [both proprietary concerns of Shri R. Shanthakumar]is to be considered as paid by Shri R. Shanthakumar. Since proprietary concerns need to pay the service tax only on or before the 5th of the month immediately following the quarter in which the payments are received towards the value of taxable service, he concluded that there is no interest liability on the appellant-assessee under Section 75 since the service tax has been paid under 'Management, Maintenance and Repair Service' well within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvocate for the appellant-assessee submitted that the appeal filed by them was directed against the classification of the service imported by them. Their claim is that it is classifiable under Management, Maintenance or Repair Service specified under Section 65 (105) (zzg) of the Finance Act,1994. The Commissioner in the impugned order held that the services imported will fall under Information Technology Services whereas taxable service provided by them would fall under Management, Maintenance or Repair service. They brought to notice that in Mysore Commissionerate in respect of Vishakarma Software Services, a similar dispute arose which was before the Hon'ble CESTAT, Bangalore Bench. In Final Order no.26548/2013, the Tribunal remanded the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no dispute that the service tax to the tune of Rs. 4,92,23,529/- has been paid by the appellant-assessee on the Management, Maintenance or Repair service on account of supply of services to domestic clients. The objection by Revenue is that Commissioner ought not to have adjusted the service tax payable on the import with that paid on the output service. It is quite obvious that the service provided by the appellant-assessee to their domestic client is based principally on the software which has been imported and on which further repair and customization has been carried out in India by them. Consequently, there is no doubt in our minds that any service tax paid on such import under reverse charge mechanism would be rightly availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
