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2016 (3) TMI 528 - AT - Service TaxLiability of Service tax - Amount paid to foreign entities for the services rendered by them prior to 18.04.2006 - Held that:- the provisions of Section 66A of the Finance Act 1994 came into Statute with effect from 18.04.2006 and for the period prior to 18.04.2006, the service tax liability does not arise on the appellant under reverse charge mechanism. This law is now settled by the Hon'ble High Court of Bombay in the case of Indian National Ship Owners Association. The judgement of the Hon'ble Bombay High Court was carried in SLP by the Revenue in Apex Court and the Apex Court has dismissed the SLP in view of the fact that the amount of service tax liability confirmed under this Head are prior to 18.04.2006. therefore, by following the same, appellant is not liable to pay Service tax. Liability of Service tax - Various amounts received for marketing of the services of the parent concern - Held that:- the issue is settled by a majority order of the Tribunal in the case of Microsoft Corporation (I) (Pvt) Ltd Vs CST Delhi [2014 (10) TMI 200 - CESTAT NEW DELHI (LB)] and many more in the favour of appellant. Therefore, the Service tax liability is not sustained. Demand of Service tax for the period July 2003 to 19.11.2003 - Denial of benefit of Notification No. 6/1999 granting exemption from payment of duty if the service which are provided are paid in convertible foreign exchange due to withdrawal - Held that:- the issue is no more res integra. It is the avowed principle of Govt of India that only services have to be exported and not the tax. If that be so, in this case, when there is no dispute as to the services being exported and the amount received in foreign exchange tax, liability arises on the appellant which is for the reason that Notification No. 6/1999 was withdrawn. By following the decision of Tribunal in the case of SGS (I) Pvt Ltd Vs CESTAT Mumbai [2011 (2) TMI 54 - CESTAT MUMBAI], the benefit of Notification is not denied and the demand of service tax not raised. - Decided in favour of appellant with consequential relief
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