TMI Blog2012 (1) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... (2008 -TMI - 32013 - HIGH COURT OF BOMBAY) – Decided against the Revenue. - STA No. 16 of 2011 (O&M) - - - Dated:- 2-1-2012 - MR. JUSTICE M.M.KUMAR, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Present: Mr. HPS Ghuman, Sr. Standing Counsel (Indirect Taxes) for the appellant M.M.KUMAR, J. 1. The short issue raised in the instant appeal preferred by the Revenue is what is the effect of implementation of Section 66 A in the Finance Act, 1994 . It was by the aforesaid provision that the service tax was levied. The provision was introduced on 18.4.2006. The Tribunal by placing reliance on a judgement of the Bombay High Court in the case of Indian National Shipowners Association v. Union of India (2009)13 STR 235 has held that any t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R. 235 (Bom.). Following the judgment of Hon ble the Supreme Court rendered in the case of Laghu Udyog Bharati v. Union of India, 2006 (2) S.T.R. 276 (S.C.), the Division Bench of Bombay High Court held that the Finance Act, 1994 was for the first time amended on 18.4.2006 whereby the revenue acquired legal authority to levy service tax on the recipient of taxable service from a person who is resident in India or has business in India. Accordingly, such a person becomes liable to payment of service tax when he received service outside India from a person who is non-resident or is from outside India after 18.4.2006. Earlier to the enforcement of Section 66A there was no authority vested by law in the revenue to levy service tax on a person w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the judgement rendered in STA No.16 of 2011 4 the case of Indian National Ship Owners Association (supra), against which SLP has been dismissed, holding that the party was not liable to pay service tax on the service provided to them by the Non-resident prior to insertion of Section 66A in the Act i.e. 18.4.2006. The view of the Division Bench of this Court in the case of Bhandari Hosiery Exports Ltd. (supra) and that of the Bombay High Court in Indian National Shipowners Association's case (supra) put the matter beyond any doubt. Any service provided to the assessee- respondent by Non-resident prior to insertion of Section 66A of the Act was not exigible to service tax. Accordingly the appeal of the revenue is without any merit and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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