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2015 (1) TMI 344 - AT - Service TaxConsulting Engineer’s Service - Supply of technical know-how - import of services - Held that:- Transaction is one of supply of technical know-how and payment of royalty thereon. Supply of technical know-how does not fall under the category of ‘Consulting Engineer’s Service’ and, therefore, the classifications for levy of Service Tax adopted is incorrect. Secondly, the service provider is a foreign company and he has not authorized the respondent to pay Service Tax on his behalf and, therefore, the Service Tax liability cannot be fastened on to the appellant as decided by this Tribunal in the case of Navinon Ltd., cited [2004 (8) TMI 2 - CESTAT, MUMBAI]. Section 68 read with Rule 6 of the Service Tax Rules, 1994 would apply in the case of a service rendered in India by a non-resident who does not have any office in India. Rendering of service in India is distinct and different from receipt of service in India. In the present case, technical know-how has been provided by the foreign service provider. Therefore, the transaction is one of providing of service from abroad and receiving it in India, that is, import of service and, therefore, the provisions of Section 68 read with Rule 6 of Service Tax Rules, 1994 do not apply. In the case of service received from abroad, the said activity become taxable w.e.f. 18-4-2006 when Section 66A was inserted in Chapter V of the Finance Act, 1994, enabling the Government to levy Service Tax on reverse charge basis from the service recipient in India in respect of service provided from abroad as held by the Hon’ble Bombay High Court in the case of Indian National Shipowners Association - [2008 (12) TMI 41 - BOMBAY HIGH COURT], which was affirmed by the Hon’ble Apex Court [2009 (12) TMI 850 - SUPREME COURT OF INDIA]. - Decided against Revenue.
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