"It should create the file in the remote machine, not in local machine"

I'm pretty sure your local shell (the thing executing those strings) doesn't work like that

For example this creates the /local/allways on local machine

$  echo > /local/allways
[download]

Compare that with this, which only prints stuff to terminal, it creates no files

$  echo "echo > /local/allways"
[download]

See Behind the GUI lives the Shell and How Command Line Parameters Are Parsed

See also system and Config#sh