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2016 (3) TMI 528 - CESTAT BANGALORE

2016 (3) TMI 528 - CESTAT BANGALORE - TMI - Liability of Service tax - Amount paid to foreign entities for the services rendered by them prior to 18.04.2006 - Held that:- the provisions of Section 66A of the Finance Act 1994 came into Statute with effect from 18.04.2006 and for the period prior to 18.04.2006, the service tax liability does not arise on the appellant under reverse charge mechanism. This law is now settled by the Hon'ble High Court of Bombay in the case of Indian National Ship Own .....

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jority order of the Tribunal in the case of Microsoft Corporation (I) (Pvt) Ltd Vs CST Delhi [2014 (10) TMI 200 - CESTAT NEW DELHI (LB)] and many more in the favour of appellant. Therefore, the Service tax liability is not sustained.

Demand of Service tax for the period July 2003 to 19.11.2003 - Denial of benefit of Notification No. 6/1999 granting exemption from payment of duty if the service which are provided are paid in convertible foreign exchange due to withdrawal - Held that:- .....

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nefit of Notification is not denied and the demand of service tax not raised. - Decided in favour of appellant with consequential relief - ST/142/2009-DB - Final Order No. 20066 / 2016 - Dated:- 20-1-2016 - SHRI M.V.RAVINDRAN, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Petitioner : Mr. Mahesh Jai Singh, C.A. For the Respondent : Mr. Mohammad Yusuf, A.R. ORDER PER : M.V.RAVINDRAN This appeal is directed against order-in-original No. 109/2008 Commr LTU dated 25.11.2008. The r .....

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concern, parent concern and various other service providers for the services rendered by them to the appellant. Revenue authorities were of the view that this amount which is repatriated is liable to service tax as per the provisions of Rule 2(d)(iv) of the Service Tax Rules. Department also came to a conclusion that for the period 15.3.2005 to 30.11.2005 appellant is liable to discharge service tax liability on the various activities undertaken by him for marketing of the goods of their own par .....

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. 2. Learned C.A. for the appellant submits that as regards issue No. 1 i.e. services received from non-recipient service providers, entire services were received prior to 18.04.2006. It is his submission that the judgement of the Honble Bombay High Court in the case of Indian National Ship Owners Association will be directly applicable as the Apex Court has upheld the said judgement as reported at 2009-TIOL-129-SC-ST. He would submit that during the period in question, they have deposited the .....

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xport of services is not disputed and no tax liability arises. 3. Learned A.R. reiterates the findings of the lower authorities. 4. We have considered the submissions made by both sides and perused the records. 5. Undisputed facts are appellant herein had rendered various services which are exported. They also have paid various amounts to the service providers who are situated abroad and have also undertaken the marketing of the services of their parent concern in India. It is the case of the Re .....

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18.04.1006, the service tax liability does not arise on the appellant under reverse charge mechanism. This law is now settled by the Honble High Court of Bombay in the case of Indian National Ship Owners Association. We find that the said judgement of the Honble Bombay High Court was carried in SLP by the Revenue in Apex Court and the Apex Court has dismissed the SLP in view of the fact that the amount of service tax liability confirmed under this Head are prior to 18.04.2006. We set aside the .....

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are provided in India and hence it is the case of the Revenue that the sales commission received are chargeable for service tax liability. In our considered view this issue is also now settled by a majority order of the Tribunal in the case of Microsoft Corporation(I)(P)(Ltd) (supra). The same view has been expressed by following decisions of this Tribunal: 1) Paul Merchants Ltd [2012-TIOL-1877-CESTAT-DEL] 2)Gap International Sourcing (India) Pvt Ltd [2014-TIOL-465-CESTAT-Del] 3) Blue Star Ltd V .....

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vice tax liability for the period July 2003 to 19.11.2003 on the ground that the appellant cannot claim the benefit of Notification No. 6/1999 which granted exemption from payment of duty if the service which are provided are paid in convertible foreign exchange due to withdrawal of Notification No. 6/1999. We find that the issue is no more res integra there being no dispute of the services being exported by the appellant and the amount received by them are in convertible foreign exchange. It is .....

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No. 6/1999 held as under: The view taken by the Central Board of excise & Customs vide Circular no. 66/2005-ST is that export of services would continue to remain tax-free even after withdrawal of Notification no. 6/94-ST dated 9.4.1999. The Board was examining the effect of withdrawal of Notification no. 6/99-ST. This Notification exempted the taxable service specified in section 65(48)( of the Finance Act, 1994 provided to any person, in respect of which payment was received in India in co .....

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