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2016 (4) TMI 1077 - AT - Service TaxDemand of Service tax - Consulting Engineering Services - Availed services of foreign consulting firm and paid technical know-how fee to the said service provider, which was a lump sum amount as also royalty paid for the licence to manufacturer the goods, which was based on the price of the final products - Held that:- on examination of the agreement entered into between the appellant and foreign service provider, we fail to note any clause in the said agreement vide which the appellant has been “Authorised” to pay service tax on behalf of M/s.Kyaba. Admittedly, in terms of the provisions, such “authorization” has to be specifically from the foreign service provider and cannot be fastened upon the Indian Service recipient by the Revenue. As such, we fully agree with the ld. Advocate that in absence of such authorization given by M/s. Kyaba, no liability would fall upon him. Accordingly, the part of the impugned order of Commissioner (Appeals), which is challenged before us in the appellant's appeal is set aside. As regards the Revenue’s appeal, it is found that the Commissioner (Appeals) has dropped the demand by relying upon the earlier decision of the Tribunal in the case of Navinon Ltd. Vs. CCE, Mumbai -IV [2004 (8) TMI 2 - CESTAT, MUMBAI]. The only ground for the Revenue to challenge the said part of the impugned order is that the Tribunal’s decision in the case of Navinon Ltd. has not been accepted by them and stands challenged before the Hon’ble High Court of Bombay. On being questioned, both sides fairly agrees that the Bombay High Court’s decision is not available inasmuch as the appeal is still pending. However, there is no stay of operation of the earlier order of the Tribunal. Apart from that, it is also noted that the period involved is September, 2000 to Feb., 2002. In terms of the Hon’ble Bombay High Court’s decision in the case of Indian National Shipowners Association Vs. Union of India [2008 (12) TMI 41 - BOMBAY HIGH COURT], liability to pay service tax by any Indian recipient of the services from a foreign person would arise only w.e.f. 18.04.2006. Therefore, no tax liability can fall upon the appellant for the period prior to 18.04.2006. - Appeal disposed of
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