GOVERNMENT OF INDIA

MINISTRY OF FINANCE
Office of the Assistant Commissioner of Central Excise,
No.14,Municipal Street,Azeez Nagar,Reddiarpalayam,Pondicherry-10.

C.NO.V/30/24/2005 S.TAX Dated :12.12.05

SHOW CAUSE NOTICE

Sub: ST- M/S. Aparana Paper Processing Industry (P) Ltd, Pondicherry-
Non-Payment of Service Tax on “Management Consultancy
Service”- Issue of notice- reg.

M/s. Aparana Paper Processing Industry (P) Ltd, Sedarapet,Pondicherry –

605111( here in after referred to as ‘Service Provider’) are the Manufacturers of
Printed poly coated film falling under Chapters 39 of the CETA 1985.

2.On perusal of the Balance Sheets of the Service Provider it revealed that the
Service Provider had collected Management fee of Rs.20,00,000/- in the years
2001-02 and Rs.24,00,000/- in the financial year 2002-03 , for providing “
Management Consultant Service “ to other companies.

3.Acccording to clause 105 (i) section 65, of the Finance Act 1994, Management
Consultant means any person who is engaged in providing any service either
directly or indirectly in connection with the Management of any organization in
any manner and includes any person who renders any advice,consultancy or
technical assistance relating to conceptualizing,devising,development,
modification,rectification or up gradation of any working system of any
organization,Service Tax on Management Consultant was imposed from
16.10.1998.As defined under Clause 105 (i) of section 65 of the Finance
Act,1994 taxable service in the case of Management Consultancy service,means
any service provided to as client by a Management consultant in connection with
the Management of any organization in any mannar and the term “service
provider’ shall be construed accordingly.As per section 67 of the Finance
Act.1994 the Value of taxable service is the gross amount charges by the service
provider for the service rendered.
4.It therefore appears that the assesses have not paid the Service Tax of
Rs.2,20,000/-( 5% of Rs.44,00,000/-) on the “Management Consultant Service”
provided by them in the year 2001-02 and 2002-03.

5.In as much as the assesses have failed to take out registration and to file the
prescribed returns in respect of Management Consultancy Service provided by
them. As required under the Finance Act 1994 read with Service Tax Rules
1994,they have suppressed the value of taxable income with intent to evade
Service Tax,and the provisions under Section 73(1)(a) of the Finance Act 1994 is
applicable for demanding the Service Tax not so Paid by them.

6.Therefore the Service Provider are hereby required to show cause to the
Assistant Commissioner Of Central Excise,III Division,14m Municipal Road,
Azeez Nagar,Pondycherry- 605 010 within thirty days from the date of receipt of
this notice as to why,

(a) Service tax of Rs.2, 20,000/- (Rupees Two lakes twenty thousand only)
on the taxable value of Rs.44,00,000/- received by them during the
financial year 2001-02 and in 2002-03 in respect of “Management
Consultant Service” rendered by them should not be demanded from
them under section 73(1)(a) red with Section 68 of the Finance Act,1994.

(b) Interest thereon the service tax payable mentioned above should not be
collected from them under Section 73(1) read with Section 75 of the
Finance Act 1994, for the said period.

(c) A penalty should not be imposed on them under Section 76 of the

Finance Act,1994 in as much as they have failed to pay the Service Tax.

(d) A penalty should not be imposed on them under Section 77 of the

Finance Act,1994 in as much as they have failed to declare the details in
the returns to be filed under section 70 of the Finance Act,1994.

(e) A penality under Section 69 of the Finance Act 1994 should not be
imposed on them in much as they filed to take out Service Tax
Registration
 and a penalty under Rule 70 of the Finance Act 1994 Should not be on
them for their failure to file the prescribed returns.

(f) A penalty under Section 78 of the Finance Act 1994 should not be
Imposed on them in as much as they have suppressed the value of
taxable service provided by them.

7. The assessees are further directed to produce at the time of showing cause
all the evidences upon which they intend to reply up on in support of their
defense.

8. The assesses are further required to state in their reply whether they wish to
be heard in person before the case is adjudicated.If no mention is made in their
written reply ,it would be construed that they do not desire a personal hearing.

9. If no cause is shown against the action proposed to be taken within thirty days
of the date of receipt of this notice, or they do not appear before the adjudicating
authority when the case is posted for hearing,the case will be decided ex-parte
based on the available records.

10. This Notice is issued without prejudice to any other or further action that may
be taken against them under the finance Act 1994 and the rule made there under
or under any other law for the time being in force.

(R.GOVINDRARAJU)
ASST.COMMISSIONER

TO

M/s.Aparna Paper Processing Industry (P) Ltd.,

Sedarapet,
Pondicherry- 605 111.

Copy to
The Superintendent of Cental Excise,
III-D range,Pondicherry.
 OFFICE OF THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE
PONDICHERRY – III DIVISION

C.No.V/30/24/2005 – S.Tax Dated: 10.03.2006

To

M/s. Aparna Paper Processing Industry (P) Ltd.,

Sedarapet,
Pondicherry- 605 111.

Gentleman,

Sub: Service Tax – Non filing of reply to show Cause Notice –

Demand of Rs.2,20,000/- Reg.

Ref: This office letter in C.No:V/30/24/2005- S.Tax dated

12.12.2005.

Please refer to the cited notice.

You are hereby required to file your within 30 days from the date of receipt of the
notice. It seems that you have not filed the reply till date.

Hence, it may please be informed whether a ‘ personal hearing ‘ is needed or to

be seceded the case ex-parte within 7 days from the date of receipt of this letter,

Yours faithfully,

(K.UTHIRAPATHI)
SUPERINTENDENT (TECH)
FOR ASST.COMMISSIONER.
.