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2006 (7) TMI 619 - HC - Service TaxLiability of service tax - receiving the consulting Engineers service - demand from the Kerala State Electricity Board - non-resident or was from outside India - HELD THAT:- We are of the considered view that as per sub-rule (1) of rule 6 as it stood prior to August 16, 2002 and going by the agreement as well as the reply to the show cause notice it is clear that the service receiver is the authorised person to meet the service tax liability. Even after the amendment of the rule with effect from August 16, 2002 agreement still holds good and the service receiver has taken up the responsibility of meeting the service tax liability. The question as to whether service provider has got an office in India is doubtful. According to the service receiver, office was being maintained in room No. 201, Vydyuthi Bhavan of the service receiver and that is as good an office within the meaning of the amended Rules and hence service receiver has no liability. We find it difficult to accept the said contention. The mere fact that the service provider was provided with an office in the building owned by the service receiver it cannot be treated as an office or registered office of a foreign company. No materials have been produced to show that the service provider has got an independent registered office in India. In any view, going by the agreement entered into between the service provider and service receiver and also the reply made by the Board, it is evident that service tax liability is to be borne by the service receiver and not on the service provider. Thus, we are inclined to allow this appeal and set aside the judgment of the Tribunal. The order of the assessing authority stands restored. Questions raised are answered in favour of the appellant. We are informed that the service receiver has already met the service tax liability, in our view, rightly. Appeal is allowed.
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