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M/s Compucom Software Limited Versus CCE, Jaipur

2018 (1) TMI 557 - CESTAT NEW DELHI

Business Auxiliary Service - services rendered by the foreign based vendors - onsite services performed outside India - service rendered to one of their clients in USA - reverse charge mechanism - Held that: - the appellant’s services to the main client, which is not being taxed being exported service is facilitated and supported by various vendors. The same is covered under the tax entry “Business Auxiliary Service” - It is clear that the destination has to be decided on the basis of the place .....

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. - Appeal allowed in part. - S.T. Appeal No.242 of 2012 - A/58265/2017-CU[DB] - Dated:- 29-11-2017 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Sh. Bipin Garg, Advocate for the appellant Dr. Neha Garg, DR for the Respondent ORDER Per: B. Ravichandran The appeal is against order dated 18/11/2011 of Commissioner (Appeals) of Central Excise, Jaipur-I. The appellants are engaged in providing software services and were registered with the Department for payme .....

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s have received services under the category of Business Auxiliary Service in terms of Section 2(19) of Section 65(105)(vzb) of Finance Act, 1994. In other words, the appellants were held to be liable to service tax on reverse charge basis as importers of such service. The proceedings initiated against the appellant concluded in the impugned order. The Original Authority confirmed a service tax liability of ₹ 2,24,71,199/- and imposed equal amount of penalty under Section 78 apart from pena .....

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venue accepted such assertion. However, with reference to support for such services received from various vendors to provide onsite service, the present proceedings have been initiated. He submitted that overall all the services are with reference to onsite activity outside India and cannot be subjected to tax on reverse charge basis as no service is received by the appellant in India. 3. Further, contesting the impugned order on limitation, ld. Counsel submitted that whole proceedings were invo .....

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on, there is no scope for alleging suppression, willful misstatement with intention to evade tax. Further, he also submitted that they were registered with the Department for paying service tax and tax, if any, paid on this dispute shall be rightly eligible for them as a credit under Cenvat Credit Rules, 2004. Hence, there is no motive not to pay tax in this case. 4. Ld. AR contested the grounds of appeal. It is submitted that the present dispute is not with reference to the services rendered by .....

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ed Vs. CCE, Chandigarh - 2013 (29) STR 267 (Tri. Del). as affirmed by the Hon ble Delhi High Court Indian National Shipowners Association Vs. Union of India -2009 (13) STR 235 (Bom). As such, when the appellant benefited from services rendered by the foreign based vendors and did pay for such services, the considerations are correctly taxed on the reverse charge basis in terms of Section 66 A of the Act. Regarding extended period, she supported the findings recorded by the Original Authority and .....

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ia, did benefit and consumed the services of the vendors, which in turn helped them to provide the services to the clients based aboard. In other words, the appellant s services to the main client, which is not being taxed being exported service is facilitated and supported by various vendors. The same is covered under the tax entry Business Auxiliary Service . We agree with the proposition of the Revenue that this is a reverse case of the ratio laid down in Microsoft Corporation (I) Pvt. Ltd. ( .....

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