Custom, Excise & Service Tax Tribunal
M/S. Astra Zeneca Pharma India Ltd vs Commissioner Of Central Excise, ... on 7 April, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order No. 20464 / 2014 Application(s) Involved: ST/Stay/27643/2013 in ST/27338/2013-DB Appeal(s) Involved: ST/27338/2013-DB [Arising out of Order-in-Original No.85/2013 ST (Commr.) dated 16/04/2013 passed by Commissioner of Central Excise and Service Tax, BANGALORE-LTU.] M/s. Astra Zeneca Pharma India Ltd. P.B. No.2483, Off Bellary Road, Hebbal, BANGALORE - 560 024. KARNATAKA Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax - BANGALORE-LTU 100 FT RING ROAD JSS TOWERS, BANASHANKARI-III STAGE, BANGALORE - 560 085 KARNATAKA Respondent(s)
Appearance:
Mr. V. RAGHURAMAN, & Mr. J.S. Bhanumurthy, Advocates NO.32, 1ST FLOOR, PATALAMMA TEMPLE STREET, NEAR SOUTH END CIRCLE, BASAVANAGUDI, BANGALORE - 560 004 KARNATAKA For the Appellant Mr. N. Jagdish, Superintendent (AR) For the Respondent CORAM:
HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER HON'BLE SHRI S.K. MOHANTY, JUDICIAL MEMBER Date of Hearing: 07/04/2014 Date of Decision: 07/04/2014 Order Per : B.S.V.MURTHY In the impugned order, demand for service tax for the period from 18.4.2006 to March 2012 has been confirmed. There are two categories under which the demand can be said to have been confirmed. In the first category, the amounts paid to foreign group companies by the appellant towards various expenses and honorarium paid to foreign doctors has been held to be liable under various categories of services such as Scientific or Technical Consultancy Service, Commercial training and Coaching Centre Service, Technical Testing and Analysis Service, etc. Further, in respect of amounts paid in foreign currencies for various activities have been held liable to service tax under the category of Business Support Service. Total amount of Rs.1,28,19,088/- has been demanded from the appellant. It was submitted by the learned counsel that the amounts are paid only as reimbursable expenditure incurred by foreign group companies and not for any taxable service. Services provided outside India are not liable to tax. Seminar and trainings held outside India is not liable to service tax, classification of services is not legal, mere reimbursement of expenses cannot be brought to taxable services, etc. It was submitted that the issue of classification under various categories of services with reference to the submissions made by the learned counsel have not at all been considered by the Commissioner. It was agreed by both sides that in this case, the matter needs a detailed reconsideration of the issues since the Commissioner has not really addressed the issue of classification. Moreover, he has applied Rule 5 of Valuation of Service Tax Rules straightaway and the appellants submissions about applicability of Rule 7 have not been considered.
2. On going through the records, we find that the original authority has not considered all the submissions and properly appreciated the same and therefore matter needs a detailed reconsideration afresh. Therefore we consider it appropriate that at this stage itself the requirement of pre-deposit should be waived and matter remanded so that the Commissioner shall pass a well-reasoned order discussing all the submissions made and addressing all the issues submitted before him. In this view of the matter, the impugned order is set aside and the matter is remanded to the original adjudicating authority to pass a fresh order after giving an opportunity to the appellants to present their case and considering the submissions in their proper perspective.
(Operative portion of the order has been pronounced in open court) S.K. MOHANTY JUDICIAL MEMBER B.S.V.MURTHY TECHNICAL MEMBER rv 2