R.K. Abichandani, President

FACTS

1. This appeal is directed against the order of the Commissioner of Central Excise (Appeals), Delhi, made on 29-10-2004 to the extent that it upholds the demand of service tax of Rs. 3,40,63,905 with interest and the reduced penalty of the like amount and upholds the demand of interest under the provisions of the Finance Act, 1994.

2. On an information that the appellant Nokia India Ltd., New Delhi was providing taxable services as consulting engineers without getting registered with the Service Tax Department and were not paying the service tax, the officers of the Anti Evasion Branch of the Central Excise Commissionerate, Delhi, visited the premises of the appellant at Commercial Plaza, Radisson Complex, New Delhi on 7-2-2001 to ascertain the nature of services provided by the appellant to their customers. It transpired from the statement of Financial Controller of the appellant, who was conversant with the functioning of the company, that the appellant was a 100 per cent subsidiary of Nokia Networks Oy, Finland and that it was implementing and commissioning the GSM equipment purchased by various cellular operators in India; that the customers