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2018 (8) TMI 496 - AT - Service TaxEOU - Reverse charge mechanism - Business Auxiliary Services - received services from Foreign companies, which did not have office in India, in respect of the services rendered abroad - case of appellant is that Section 66A could not have been made applicable retrospectively as it came into force only from 18.04.2006 - Held that:- In respect of the service provider being abroad, the liability to pay Service Tax on “reverse charge mechanism” has come into effect only from 18.04.2006; this has been held by various judgments and particularly, the Indian National Ship Owners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT] - there is no need to deliberate on the issue as being a settled one. Whether the requisition received by the appellants after 18.04.2006 are taxable to Service Tax? - Held that:- The appellants are in India but the services are rendered by the company which is outside India and the services are also rendered outside India, however, it is not denying that the appellants are receivers and beneficiaries of the services rendered abroad - the demand needs to be made limited to the period from 18.04.2006 to 31.12.2006 and penalty under Section 78 would also be equivalent as per the amount of duty payable for the period. Service Tax for the period from 18.04.2006 onwards - CENVAT Credit - revenue neutrality - Held that:- The facts of the case and the submissions of the appellants did not make it clear whether the appellants are registered as Service Tax providers and whether they are availing facility under CENVAT Credit Rules and are following proper procedure - the appellants are liable to pay the Service Tax for the period from 18.04.2006 to 31.12.2006. If the appellants are otherwise liable to take credit of the same and to obtain a refund of the same cannot be decided at this end - As no refund claim is filed, the issue cannot be decided at this stage. For this reason the issue needs to go back to the original authority. Appeal allowed by way of remand.
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