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2018 (6) TMI 10 - CESTAT MUMBAIDemand of service tax under reverse charge mechanism - enactment of Section 66A of the Finance Act, 1994 - technical inspection and certification and technical testing and analysis services - period 1.10.2003 to 31.3.2007 - Held that:- The service tax on the reverse charge basis from receipt of invoices from abroad has become taxable only with effect from 18.4.2006 when Section 66A of the Finance Act, 1994 was enacted. This has been decided by the Hon’ble Bombay High Court in the case of Indian National Shipowners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT] - the demand pertaining to the period upto 18.4.2006 is set aside. Penalty u/s 78 in relation to demand of service tax after 18.4.2006 - the service tax after 18.4.2006 is not disputed by the appellant, and service tax with interest paid before issuance of SCN - malafide intention to evade the service tax - Held that:- the issue of taxability of service provided from abroad was highly debatable issue and finally it was settled by the Hon’ble Supreme Court in 2009 which was reported in 2010. Therefore, till that time the issue was under litigation. Therefore, it cannot be said that the appellant had any malafide intention to evade the service tax - also, the appellant has discharged the service tax for the period after 18.4.2006 along with interest much before the issuance of show cause notice - penalty not warranted. Appeal allowed in part.
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