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2018 (12) TMI 19 - AT - Service TaxOnline Information and Data Base Access and Retrieval Services - the activity of downloading the software through computer network - reverse charge mechanism - Held that:- Hon’ble Supreme Court has categorically held in the case of Indian National Shipowners Association vs. Union of India [2009 (12) TMI 850 - SUPREME COURT OF INDIA] that the liability for service tax from foreign service providers will arise only after Section 66A is incorporated into the statute w.e.f. 18.04.2006. This view also been admitted by the Revenue - the demand for service tax is to be set aside for the period upto 17.04.2006. Period from 18.04.2006 to January, 2007 - Held that:- It is not in dispute that the software has been downloaded from the internet from foreign based service providers. We are of the view that such activity will be covered within the definition of “Online Information and Data Base Access and Retrieval Services”. As such for the period from 18.04.2006 to January, 2007, i.e. for the period after the introduction of Section 66A, we are of the view that the liability for service tax arises on the assessees - if service tax is paid on reverse charge basis, the same will be available to the appellant who is a manufacture of the Public Address System as cenvat credit in the form of input services. Hence, we are of the view that this leads to a revenue neutral situation and even if liability of service tax arises, the same will not be payable. Even for the period from 18.04.2006, the liability for payment of service tax against the appellant does not arise - there is no scope for imposition of penalty also - Appeal disposed off.
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