The case of M/s. Indian National Shipowners Association Vs. Union of India & others - Regarding.

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..... India & others - Regarding. The Hon'ble Bombay High Court, vide order dated 11-12-2008, in the case of M/s. Indian National Shipowners Association (INSA) v. Union of India, W.P. No. 1449/2006, has held that before enactment of section 66A, there was no authority vested by law to levy service tax on a person who is resident in India, but who receives service outside India [2009 (13) S.T.R. 235 (Bo .....

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..... entioned judgment in the case of M/s. INSA v. Union of India does not apply to the cases where taxable service, provided by a non-resident, not having any office/establishment in India, is received in India. The levy of service tax on such services has been examined in the cases of (i) M/s. Hindustan Zinc Ltd v. Commissioner of Central Excise, Jaipur, by the Larger Bench of CESTAT [2008 (11) S.T.R .....

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..... e Finance Act, 1994 came into effect. The Civil Appeal and SLP respectively, filed by the department in these cases, have been dismissed by the Hon'ble Supreme Court and these orders have been accepted by department. Therefore, in view of these judgments, levy of service tax on taxable services received in India which are provided by a non-resident, not having office/establishment in India arises .....

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..... d vessels located outside India. 3.1 However, the ratio decidendi of aforementioned judgment in the case of M/s. INSA appears to have applied wrongly in a few subsequent cases by the Courts to arrive at the conclusion that service tax would not be leviable before 18-4-2006, even on services received in India, when provided by a non-resident. One such case is M/s. Unitech v. Commissioner of S .....

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..... y office in India, arises on reverse charge basis, w.e.f. 1-1-2005 as has been upheld by the Apex Court in the cases M/s. Hindustan Zinc Ltd. and M/s. Aditya Cement Ltd., distinguishing such cases on facts from the INSA case. However, levy of service tax in respect of cases where service is received outside India would follow the ratio in the aforementioned case of M/s. INSA v. UOI. 5. Accor .....

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