Karnataka High Court
The Commissioner Of Central Excise And ... vs M/S. Canara Bank on 20 April, 2011
Bench: N.Kumar, Ravi Malimath
. '§'~'-$5. Ca? né:§:':£=; "Ba n Sea EN THE HIGH COURT SF KARNATAKA AT Bs'i,F\§G§kLORE_ mAT&t>TH§S1+fi§2Q"'DAY{mrAPRuMaQ11=f~ gfa PRESENT % % THE HGNBLE MR' }L.f§"I"Z:fEE""f"«'--.f<;%.&,§F*'{'%&.;§<3;"if_¥g'4E 4' AW 1 V _ THE Hfif\§'"E5LE MR,3US'fI--f:EEf'~.RfAViV'§'vEALi§fi%§EF§;% V"V"' cEAJgQ.§G&35:§:®_ BETWEEN:
The CommEssi@:5:er'j;:;:>.f'Cef*:':ra§ '"E><:§se &S~37;
La rge Taxpay-'e%:""Li_n1i-t, H. S .5 __T'"z}_weé'rs--«,,_' V _ ' Banashankari_IIEj__$.tage:3._Q[Offi:_."'--' g ' Ffing R0ad,$ahQak%§s«S6GG85;,m ' . APPELLANT (Big, Srix Sewer Ceniraé Qavernmenz':
Standing €Z:;u*nse§}..>\' .
AND;,.x C~:.'xE'<:C§gRE) E)]E\:'§S'f'2')§_'E, 'S7§"E§Ta0Lr',., _:E'\£.ax%s"3&i<-sf; V {jam péexg Na;--?"4;.V?»'€{i3:":é§eif:r2:'3":e:":t Raaé, "= Bangfififiaflgg U"RES§QN§ENT "~~_{$¢ryea§.5 =§<>?-fiié This CEA fifed under Section 35C; of the "§C'e3r_€'t:jé:'%, Excise Act, 1944 arising Gui af' Grder dated :;g;";<34§'V;2m~9;. gassed iv} Fmai order 943. 1:'L23,?2DD9, praying %:<::f de§";.%.s:EéL-t?Azé""T " gubgtantiaf questien of Eaw stated therein,..sr;:_ '~a_$i'<:%é ihe" CESTAT, South zcme Bench Banga%e::e*re»~.i.;*2 Fuinayé Cr';fe?vI%£Q.'L'v.. 1123/2009 dated 11.G9.2GQ9, in {fie i;*:t:e~3Trest.cf jissticte-.an:i:.T f equfiy.
This CEA ceming on""v%.L, 1a'"c;%r h.ea:f_iVn'g .=tfi'i;sV'V éay; Ravi Niaiimath 3", cfiefivered the fQ_E'§':::§f~:i:a__g:~ ' i This appe a} i:s__by gsfié":re:*@e:§::§;é'vL»§i:§i.§ig~:%z:§§%rieved by the mder of the ::7$":Vi§'i':'_L'_EVr1é i.';ifJ?1§'§j§f1I_F1--é3_§;i~..filié_'*;:'§E'%éH%ervir:es renderefi by the <fv<.:~A.V:"..._f'E}er\/ice Tax as recipient ef the sfé;*v§--c1e:fJV5'§"s?§j-.§§rr:§4'e--é_§;:"::;*:*§§i:§'§;.r, set aside izize émgjugneé Order» A ' V 't T§"3€3'E-$S_§_$ S;€3$ had avaéied the gewiseg 9? '-V1_:x4;}s,iwisga.,V:m:eV:~';:atms:a; Service ésgacéatéeag USA faéimg
-Se::i%'f<}:%'s"z..€:*' §E«V(Si) {vii} sf '?:?':€ Finance AC2, 1994 3:16 haé paid ufirdA§é:--"..%'::ét§3'{3"ar§2T:;V5? 'flanking 8; Fmanciafi fierx./$693' unéer E51//"
far the Same: Erzvegtigaticmg revealed that ,'\..:f--'3'.SA Internatiorzai did net have an offiae in India and Service Tax iéabéfity had to be discharged by tiéé' r::«~;c.'i.:;j%;:~="nétV_"'_4' M 91' service \zi::., fv%f$'Canara Ba:2F<;~i"i't*:"-«terms_,.r;'§f'~ f~1u:ie.]~2 ~ {i)(d)(iv} ef Service Tax Ru§e$, A"T§-%e[é#';éT,'~.,a«. cause notice éated 18.0-¢'i,2€)C)V»f:5--.y:.§:;3.§}h§J2 £5 Vbg Ehe Jami: Commissioner de:in§2ndi:j3.g*'**V§é'r\?§%;:gz Tia§{'a3~A"€;ve§i as Qrafimsing is imiflose %r:té4':*eé}_r,_t' "-fizfi Assesgmg Authority c0nfirfne;:piv..E_he fiivfgréeved by the same, an ': § i'i:€5g?fl"t':"'=F'§'§§::' _:'iT53, Ciemmissiener {ApE3eaIS}~.~-----. '%":--e£.dv"§that the Sen/E58 tax Eiahiiity of amendment 0? was 2(1){d}(§v) u"<:4f_%t§?:e ;'"§_éz*v{ECe::_"..'LTax Ruies am therefere, the _.v..a;eses»3:i:--:e bx:-:§ng re"<::'3Es{_$_rf.vef the SEi'V§C& grovééer is Eiabie ta AV':pay'serv5..{%@«.ta$§"v;_Et%: effect fmm :§,.®8;2QQ25 figgrieveé by i:i*xe-- §--.?-zmeigé--'V.§%"':é;="as3@sse€ fireferreé 3:3 apgeai :9 the *E"r§bas§.'i§J.f "' f;{v?éére'i:%, it was %:e§d that the S€§""°=J§C€S reaeéveé "i.i*:a_aé§e§$ae bemg grim" ta i8.Q4§Zi3S6_, tizey are not iiable fer" service' tax as recipient of the $e;~'~«;.e%'Et::e> accordingly, he set; aside the impugnefi order.
by the same, *C§"'£E revenue has preferrefi this a;3--,ri>{éa§.- V
3. This appeai was admigted to-"'e:e..sjj::,i;é'e§' '-ijhe;
failawirzg substantéai questéoh @.fL:"Ea.w:
2') Lsvhether tbs: . :9erv;ir:5v Eégifjglant int Afr':-dig? ifs :':'3bie3 ta pay the Séfg/.x'AceL service provider is a nc3nA:r:€§~5_ia*fe;' é_fi };»r"'fsV'f};§;?:rV" oufside India ar3::"f"'§i§'es Qfzatg fiéve. in Irzdfa under; §}:rvr*i9g_v.is«iL:g.:'g;' vof 2(.Z )(d)(.i:/) af Se{y{{::e"~.f?'iar>€«:_;{§zgl.é$;' in exercige of prgfrweb'£§1}::jg:f_$ecti§k*:« sf Finance Act, 2 994.
ii) u"L%5iff2<2t.»'}?e.r ?"r;'bur2a;' was r:'gf':£'" in ',._§j;,§§ér:':~:~=;';i:":g fiwfiiéfyzpéggnea' order by fgnarmg the é}:3:.}%};3o;%e;A_ ana; """ 'tpaiicy decfgéon fiéfvina' we thereby fiefeaiing 5&9 purgosa 92' flVffzé'}%.L§;;--§z'§$é€ic3.r: 53/9 giving meaning gifzer Ehar;
w%=2':a§ ',é3':fe3n'y arm' ;"}§a§£'?f§z' f;'@:xa/irsg fmm 33°?"
The High Ciaurt ragistry Es directed tn returr2"'--._{:§:e Certifiad cepies 9f the erders produced, is the ':0 mefez" the appeai.
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