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2017 (9) TMI 1560 - CESTAT MUMBAIImport of services - reverse charge - classification of services not done - non-levy of service tax - appellant operating in India is the recipient of online information and database access and/or retrieval services - reverse charge mechanism - Held that: - where section 66A of Finance Act, 1994 is sought to be invoked, the classification of the service must necessarily be dealt with in concatenation with identification of the recipient. The impugned order has failed to so and is liable to be set aside on that count itself. the adjudicating authority has transposed the transactions onto a portion of the definition in section 65(75) and section 65(105)(zh) of Finance Act, 1994 without any discussion to identify the appellant as the recipient of the service and, in accordance with the special provisions of section 66A, the deemed provider of the service for liability to tax. This is an essential requirement considering the manner in which section 66A has been enacted as a deviation from the general norm in section 66 of Finance Act, 1994. It would appear to us that the tenor of the various decisions handed down by the Tribunal, and cited by the rival sides, have not been appreciated for the valorous attempts to clarify this much-misinterpreted provision of Finance Act, 1994. It, therefore, devolves upon us to enlighten both disputants and, at the same time, provide ourselves with that steady and unwavering beam within which we will find the resolution to this dispute. The attempt in the present dispute was to hold the Indian branch of a foreign entity liable to tax on consideration paid to an overseas entity arising from contractual relationship of the foreign headquarters of the appellant with CRS/GDS operators outside the country. The thread of provider-recipient relationship as interpreted by Tribunal in the several decisions is unwavering and constant - demand set aside - appeal allowed - decided in favor of appellant.
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