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M/s. UOP India Ltd. Versus CCE, Rohtak

2017 (9) TMI 878 - CESTAT CHANDIGARH

Erection, commissioning and installation services - equipments supplied by the appellants to its customers - Held that: - As all the agreements have not been examined by the adjudicating authority to give clear finding, therefore, the said demand is not sustainable in eyes of law - matter is remanded back to the adjudicating authority to decide the issue afresh. - IPR service - royalty income pertaining to licensing of technical information/knowhow under the category of business auxiliary se .....

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eting support service under the category of business auxiliary service is not sustainable against the appellant. - Charges paid to the company’s overseas entities in respect of maintenance of software - Held that: - it is fact on record that the software is located in a server outside India, therefore, the service has been provided outside India and used outside India only - the demand against the appellant on account of maintenance of software is not sustainable. - Appeal allowed in par .....

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firmed against the appellant through various show cause notices on the following services: (a) The demand of ₹ 48,72,77,071/- has been confirmed under the category of erection, commissioning and installation services in respect of equipments supplied by the appellants to its customers (b) The demand of ₹ 1,33,80,774/- has been confirmed on account of royalty income pertaining to licensing of technical information/knowhow under the category of business auxiliary services (c) The deman .....

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the appellant has filed reply to all the agreements and stated that all the evidence available on record instead of examining the contents of these agreements individually, the show cause notice alleged against the appellant on the basis of random scrutiny of 5 contracts which is contrary to the facts of the case. Therefore, the impugned order is required to be set aside on that ground alone and the matter be remanded to the adjudicating authority to examine all the contracts in details whether .....

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said agreement are not of the nature of one time services, instead these services are being provided on continuous basis in lieu of which the service recipient are paying an amount/charged in the form of royalty regularly which is taxable on each such payment of royalty under IPR service. 6. He further submits that the observations of the adjudicating authority that the nature of the services provided by the appellant under the said agreement are not a one-time service instead the services provi .....

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by the appellant by treating the same as business auxiliary service. In this regard, the benefit of export of service has been denied and a demand of ₹ 15.6 crores relying on the Board Circular No.B/1/4/2006-TRU dated 19.4.2006 read with Board circular No.56/5/2003-ST dated 25.4.2003. The said issue has been settled by this Tribunal in the case of Paul Merchants Ltd. -2013 62 VST 501 CESTAT and Microsoft Corporation (I) Pvt.Ltd.-2014 (36) STR 766 (Tri.-Del.). Therefore, the demand is not .....

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post 18.4.2006, it is his submission that the condition of the Import of Service Rules have to be satisfied whereas no attempt has been made by the adjudicating authority to apply the test prescribed therein. He submits that the service tax on such services could be levied only if the goods were located in India for the purpose of repair. However, this condition cannot be said to be satisfied in the instant case as the software is located in a server outside India. Therefore, the said demand is .....

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ing services to UOP LLC and other overseas companies. (iv) The charges paid to the company s overseas entities in respect of maintenance of software. 12. With regard to the erection, commissioning and installation services, we find that there are 38 agreements in question, but the demand has been made on the basis of randomly scrutinized 5 contracts. It is the contention of the appellant that most of the agreements are for other services not for erection, commissioning and installation services. .....

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at the services were received under the agreement executed prior to 10.9.2004 i.e. before the introduction of service tax on IPR service. We find that similar issue came up before this Tribunal in the case of Reliance Industries Ltd. (supra) wherein this Tribunal has observed as under: Insofar as the agreement with Investa Technologies S.A.R.L. is concerned the same was entered into on 14.4.2004, prior to IPR services being brought into the net of service tax w.e.f.10.9.2004. The service tax its .....

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rence to the date on which payment is made. The law in this regard is settled by the decision of the CESTAT reported in 2008 (10) STR 243 = 2008-TIOL-283-CESTAT-AHM which was affirmed by the Hon ble Gujarat High Court in the appellants own case reported in 2010 (19) SR 807 as also by the Hon ble Delhi High Court in the case of CCE vs Consulting Engineering Services India (P) Limited-2013 ((30) ELT STR 586. As the service in the case of Investa Technologies S.A.R.L. was rendered prior t o10.9.20 .....

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