Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 946 - AT - Service TaxImport of services - foreign remittances outside India for availing certain services for use in their manufacturing business - reverse charge mechanism - GTA Services - period 01.01.2004 to 31.12.2004 and period 01.01.2005 to 31.12.2006. Import of services received from outside India - Held that:- Though the Ld. Commissioner has in-principle agreed that service tax liability will arise on payment basis and not on accrual basis, he has considered the tax liability for the period from 2003 to 2006. It is now well settled legal position as held by the Hon’ble Supreme Court in Indian National Ship Owners Association [2009 (12) TMI 850 - SUPREME COURT OF INDIA], that the service tax liability will arise for foreign remittances made for import of services for the period 18.4.2006 onwards. In the instant case, since the period in dispute is 01.01.2003 to 31.12.2006, the demand would be restricted to import of taxable service for the period from 18.04.2006 to 31.12.2006 only - the adjudicating authority would accordingly re-compute the final service tax liability for the aforesaid period. Explanation 3 to Section 67 of the Finance Act, 1994 - Held that:- The service tax is payable only when the payment of consideration /foreign remittance is made (cash basis) as per Rule 6 of the Service Tax Rules, 1994. If the contention of the Revenue is accepted, the same would lead to premature demand which is legally not sustainable in view of the aforesaid provisions of Rule 6 - the demand which has been dropped by Ld. Commissioner is on account of point of taxation and not the value of taxable services - decided against Revenue. Service tax demand on Goods Transport agency service for the period January 2005 to December 2006 - abatement benefits - Held that:- The Revenue has filed appeal against the abatement benefits extended by Ld. Commissioner only on the ground that he has not verified the genuineness of the certificates submitted by concerned transporters based on which abatement benefit has been extended. However, no evidence has been provided by the Revenue to doubt the correctness of the said certificates provided by the transporters. Time limitation - penalty - Held that:- The service tax payable under reverse charge on import of services from outside India as well on Goods Transport services would be available as credit and hence, revenue neutral - Further, the very levy on import of service was under dispute which was finally settled by Hon’ble Supreme Court in Indian National Ship Owner’s Association - extended period not invocable - Since there is no suppression, penalty also not sustainable. Appeal allowed in part.
|