TMI Blog2012 (7) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... o India are taxed in the hands of the Indian residents. In such cases, the Indian recipient of the taxable services is deemed to be a service provider. Before enactment of Section 66-A there was no such provision in the Act and therefore, the Respondents had no authority to levy service tax on the members of the Petitioners-association - Respondents are restrained from levying service tax from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12/2002-ST dated 01.08.2002 provides that collection of service tax is applicable from 16.08.2002 from the service receiver in such case? 2. The question whether the assessee is bound to collect/deduct service tax from foreign based service providers prior to 18.4.2006 has been the subject matter in a number of decisions. The Division Bench of the Bombay High Court in Indian National Shipowners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt to be invalid. The law laid down by the Supreme Court in its judgment in Laghu Udyog (supra) is squarely applicable to Rule 2(1)(d)(iv), which is relied on in 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. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a service provider. Before enactment of Section 66-A there was no such provision in the Act and therefore, the Respondents had no authority to levy service tax on the members of the Petitioners-association. 21. In the result, therefore, the petition succeeds and is allowed. Respondents are restrained from levying service tax from the members of the Petitioners-association for the period from 1-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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