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2015 (3) TMI 666 - CESTAT NEW DELHIImport of services - associated enterprises - though the services were provided period prior to 18.04.2006 when Section 66A had been introduced but payment was made after 18.4.2006 - Held that:- The department has confirmed the service tax demand of ₹ 3,18,73,116/-on the ground that on account of amendment to Section 67 by introducing Explanation - w.e.f. 10.05.2008, the appellant company would be treated as having made payment on this date and, therefore, serviced tax would be chargeable. In our view, the ground on which this service tax demand has been made is totally wrong, as when undisputedly this service tax demand is in respect of the services received by the appellant company from their Holding Company located abroad in respect of services received during the period prior to 18.04.2006 and when the taxing event for the service tax is the provision of service and not the receipt of payment, in view of the judgment of Hon'ble Bombay High Court in the case of Indian National Shipping Owners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT], no service tax would be chargeable on the service received by the appellant company from the holding company located abroad during the period prior to 18.04.2006 and accordingly, this service tax demand is not sustainable. - Decided in favor of assessee.
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