TMI Blog2019 (4) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant has admitted the liability for service tax to the extent of Rs,2,19,13,007/-, which has already been paid along with applicable interest before issue of SCN - demand of service tax with interest upheld - penalty set aside. Services in relation to ADB Projects - HELD THAT:- In respect of services provided to International Organization including ADB, the appellant will be eligible for the benefit of exemption granted by the Notification No.16/2002-ST dated 02.08.2002. In the Certificate dated 23.02.2009 issued by the Chartered Accountant, it has been certified that an amount of ₹ 1,03,610/- has been paid towards professional fees for ADB projects in China - demand set aside. Demand for service tax i.e. 4,61,663/- is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er investigation into the issue, the Department found that the appellant is liable to payment of service tax on reverse charge basis for the services procured from outside India. Accordingly, show-cause notice dated 24.04.2007 was issued proposing the demand of service tax in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 and Taxation of Services (Provided from outside India and received in India) Rules, 2006. The issue was decided in adjudication by issue of the impugned order, in which the adjudicating authority ordered as follows : (i) Confirmed the demand of service tax amounting to ₹ 4,96,55,211/- and dropped the remaining demand of ₹ 42,00,351/-. Interest was also ordered to be paid under Section 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that out of the service tax liability arising for the period 18.04.2006 to November, 2006, the appellant has already discharged the service tax liability amounting to ₹ 2,19,13,007/- along with applicable interest even prior to issue of the show-cause notice. As such, he submitted that no penalty will be liable on this portion. (iii) Out of the balance amount of ₹ 4,74,345/-, he submitted that the service tax liability will not arise forot he following reasons : (a) An amount of ₹ 12,682/- relates to services procured in relation to Asian Development Bank (ADB) projects. He submitted that Notification No.16/2002-ST dated 02.08.2002 grants exemption from service tax to services provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s procured up to 17.04.2006. 8. Next we turn to the demand for service tax for the period 18.04.2006 to November, 2006, the appellant has admitted the liability for service tax to the extent of Rs,2,19,13,007/-, which has already been paid along with applicable interest before issue of showcause notice. We uphold the payment of service tax along with interest, but set aside the proportionate penalty under Section 80 of the Finance Act, 1994. 9. ut of the remaining service tax demand of ₹ 4,74,345/-, an amount of ₹ 12,682/- relates to services in relation to ADB Projects. In respect of services provided to International Organization including ADB, the appellant will be eligible for the benefit of exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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