9911796707
TMI Blog2018 (9) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... their business activities in India and for this purpose, they have taken external commercial borrowings from overseas market. Forgetting the External Commercial Borrowings (ECB) facilitated from abroad, the appellant have engaged M/s. Elara Capital and other agencies, who were based in London, for arranging such external commercial borrowings. After the necessary funds have been arranged by M/s. Elara Capital and others for which they have raised certain invoices indicating their charges in foreign currency for providing services of arranging ECB to the appellant abroad. 2. During the Audit of the CERA, it was noticed by the department that the appellants have not discharged their service tax liability under the category of Banking and Ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the reverse charge mechanism basis. It has also been contended that entire demand is barred by period of limitation, that before the show cause notice dated 27.4.2010 came to be issued the appellant has been in correspondence with the department since July, 2007. It has further been added that a letter from the office of the Directorate General of Central Excise Intelligence, Chennai dated 31.7.2007 was received by them and a due reply of the same was given on 18.8.2007 on this issue of commission paid to the appellant. It is further submitted that the foreign based service provider assessee has not heard anything from the department whether any service tax is payable on the services received by them from the service provider based abro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (provided from Outside India and received in India) Rules, 2006, the recipient of services of above mentioned category needs to discharge their service tax liability as if such services have been performed in India. It is categorically been provided that even if a part of borrowings have been used abroad for the business purposes, the facts remain that recipient of services is based in India and therefore, as per the provisions Section 66A of Finance Act, 1994 read with relevant rules, the appellant assessee should have discharged their service tax liability in India, on the amount of commission paid by them as the value of services received by them from abroad. Thus, we hold that appellant assessee are legally liable to pay service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abroad. We do not subscribe to the arguments of the appellant that because they have written certain letters, only because of that extended time proviso is not invokable in their case. So far as the show cause notice pertains to Jaipur II Commissionerate, it had apparently been dropped saying that "the activity in question was enacted at Delhi and for which the concerned Commissionerate has already issued Show cause notice and therefore, the show cause notice issued for same period on same issue for Bhiwadi Unit has been withdrawn. This fact, in our opinion goes against the argument of appellant that even after coming to know that service tax is apparently payable by them on the services availed by them from abroad, however, they chose not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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