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2015 (8) TMI 543 - AT - Service TaxDemand of service tax - Commission agent service - Reverse charge mechanism - Held that:- For the demand of service tax liability under reverse charge mechanism from 01.04.2003 to 18.04.2006 the adjudicating authority is correct in dropping the demands as during the relevant period provisions of Section 66A of the Finance Act, 1994 were not in statute. Provisions of taxing an amount paid by an assessee in India under reverse charge mechanism was brought into statute from 18.04.2006. This law is settled by the Hon’ble High Court of Bombay in Indian National Ship Owners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT] and upheld by the Hon’ble Apex Court in [2009 (12) TMI 850 - SUPREME COURT OF INDIA]. Accordingly, we hold that the impugned order to the extent it drops the proceedings initiated against respondent-assessee upto 18.04.2006 is correct and legal and does not require any interference. In respect of demand post 18.04.2006 the provisions of Section 66A would be applicable in this case and the respondent-assessee is liable to discharge appropriate service tax liability on the amount paid by them as commission to agents appointed abroad for procuring export orders. We uphold that portion of the order which confirms the demand of service tax from 18.04.2006 to 31.3.2007. Since we uphold the demands of service tax liability, the interest liability under Section 75 of the Finance Act, 1994 would also requires to be discharged - However, penalty is set aside - Decided partly in favour of asessee.
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