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TMI Blog2010 (5) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... he Order-in-original No.23/2008-ST dt. 26/11/2008. 2. The relevant facts that arise for consideration are that the appellant herein were receiving services from people who are situated abroad under the categories of Consulting engineer service, repair and maintenance service, commercial training and coaching services, computer network services. The lower authorities were of the view that the appellant herein as a recipient of services from the person situated abroad, is liable to pay the service tax under Rule 2(1)(d)(iv) of Services Tax Rules, 1994. Entertaining such a view, the lower authorities issued a show cause notice for the demand of service tax, interest at the appropriate on such service tax and for imposition of penalties under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Ltd. [2010-TIOL-103-HC-P&H-ST] c. Amet Ltd. Vs. CST, Mangalore [2010(18) STR 27 (Tri. Bang.)] d. L.M. Glasfiber (India) Pvt. Ltd. Vs. CST, Bangalore [2010(17) STR 572 (Tri. Bang.)] e. ABB Ltd. Vs. CST, Bangalore [2010(17) STR 131 (Tri. Bang.)] It is also his submission that in the recent decision in the case of Metro Cash & Cary Vs. CCE [2010(26) STT 44 (Bang.-CESTAT)], this Bench has followed the judgment of the Hon'ble High Court of Bombay. It is his submission that post 18/4/2006, the service tax does arise on the demand but it is his submission that for the period post 18/4/2006, the lower authorities have to first classify the services which are received by the appellant. He would submit that this classification is necessary in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. We may, with respect, reproduce their lordships ratio as under:- 19. "Then reliance is placed on explanation which is added below Section 65(105). That explanation was added by Finance Act, 2005 with effect from 16-6-2005. That explanation reads as under :- Explanation - For the removal of doubts, it is hereby declared that where any service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India and such service is received or to be received by a person who has his place of business, fixed establishment, permanent address or, as the case may be, usual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case. It appears that it is first time when the Act was amended and Section 66A was inserted by Finance Act, 2006 w.e.f. 18-4-2006, the Respondents got legal authority to levy service tax on the recipients of the taxable service. Now, because of the enactment of Section 66A, a person who is resident in India or business in India becomes liable to be levied service tax when he receives service outside India from a person who is non-resident or is from outside India. Before enactment of Section 66A it is apparent that there was no authority vested by law in the Respondents to levy service tax on a person who is resident in India, but who receives services outside India. In that case till Section 66A was enacted a person liable was the on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. advocate that first services which are received by the appellant needs to be classified and benefits in accordance with law needs to be extended to them. On perusal of the entire Order-in-Original , we find that there is no classification of the services which have been received by the appellant and the entire demand has proceeded on the presumption that all the services which are received by the appellant are taxable as the recipient. We find that this cannot be done so as the recipient of the services the appellants needs to be known under which category he is liable to discharge the service tax liability for which classification needs to be done. After such classification done, any benefit that can accrue to the appellant under the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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