TMI Blog2016 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in foreign exchange. We find that Explanation 1.- under Section 66A stipulated that “a person carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country.” In the instant case, NOC BV Netherlands is admittedly having a business establishment in India recognized by various law. The service is rendered through such establishment in India. The reliance placed by the original authority on Board’s Circular dated 06.05.2011 is misplaced. The said Circular is not on the scope of Section 66A. We find that the original authority has misdirected in his finding despite of his recognition of the Indian establishment of NOC BV as service provider. - Demand set aside - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der wherein, the original authority confirmed the service tax demand of ₹ 2,87,26,696/- for the period 2009-10 to 2010-11 and imposed equal amount of penalty on the appellant under Section 78. 2. The learned counsel for the appellant assailed the impugned order mainly on the following grounds:- (a) Provisions of Section 66A has no application in their case. Though the agreement is with NOC BV, Netherlands, the services are rendered through Indian establishment of NOC BV, who raised the bills for the services along with the service tax applicable. This much has been recognized by the department also. The value for services are remitted to NOC BV, Netherlands as per the arrangement whereas the service tax for that value has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies in terms of applicable regulations. The Indian establishment of NOC BV, Netherlands have registered themselves with the service tax department and remitted the full tax liability with reference to the impugned contract. The original authority while taking cognizance of the existence of NOC BV in India, proceeded to confirm the service tax demand on the basis that the agreement is with NOC BV, Netherlands and the consideration is paid in foreign exchange. We find that Explanation 1.- under Section 66A stipulated that a person carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country. In the instant case, NOC BV Netherlands is admittedly having a business est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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