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2009 (7) TMI 443 - AT - Service TaxLiability of recipient in case of import of services – contention that liability of the recipient in respect of such service commenced from 18-4-2006 – Appellant submits that in respect of the service provided prior to 18-4-06, the amount that is paid after such cut off date shall not bring the appellant to the fold of law for payment of service tax in respect of prior period services. - Apex Court in the case of All India Federation of Tax Practitioner v. UOI reported in [2007 - TMI - 1556 - Supreme Court] has categorically brought out that service tax which in turn is VAT is destination based consumption tax in the sense that it is on commercial activities and is not a charge on the business but on the consumer and it would, logically, be leviable only on services provided within the country, service tax is a value added tax. - Hon’ble Court stated that services fall into two category of services. First category is property based while the second category is performance based. Following such rationale, the service already performed before 18-4-06. 18-4-06 may not call for imposition of the tax on the appellant. – Stay is granted
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