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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, PondicherryNon-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.

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