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2017 (12) TMI 1376 - AT - Service TaxReverse charge mechanism - services availed by them from foreign companies under the category of Banking and Other Finance Services - Section 66A - case of appellant is that the service provider in UK is having a permanent establishment in India and as such, the appellant is not covered by Section 66 A - whether the presence of such an establishment in India is relevant to determine the tax liability of the appellant u/s 66 A? - Held that: - the permanent establishment of the service provider in India has no role or connection with the provisions of service - the appellants received service provided by a legal entity separately recognized and established in a foreign country, this is a case covered u/s 66 A - the appellants are liable to pay service tax on reverse charge basis w.e.f. 18.04.2006. Time limitation - Held that: - the appellants having received service from foreign entity and having been aware of the provision of Section 66 A, should have examined the tax liability for due discharge, extended period rightly invoked. Penalty - Held that: - the provision of Section 80 can be invoked for waiver of penalty in the facts and circumstances of the case as the appellants have been pleading regarding the payment of consideration through Indian affiliates of the service provider situated in UK - penalties set aside. Appeal dismissed - decided against appellant.
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