TMI Blog2017 (10) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... otice issued, on the basis of explanation Section 65(105) of the Finance Act, 1994, read with amended Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 are not valid in law and liable to be quashed - petition allowed. - W. P. Nos. 16298 & 16299 of 2007 W. M. P. Nos. 1, 1 & 2 of 2007 - - - Dated:- 5-10-2017 - T. S. Sivagnanam, JJ. For the Petitioner : M/s. Cyndujakrishnan For the Respondents : Mrs. R. Hemalatha, Senior Panel Counsel ORDER Heard M/s. Cyndujakrishnan, the learned counsel appearing for the petitioner and Mrs. R. Hemalatha, the learned Senior Standing Counsel appearing on behalf of the respondents/Revenue Department. 2. When the Writ Petitions are taken up, it is submitted by the learned counsel on either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding amendment was made to Rule 2(1)(d)(iv) which reads as follows: In relation to any taxable 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 provider does not have any office in India, the person who receives such service and has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India. Thereafter the explanation to 65(105) was omitted and 66A of the Finance Act was introduced with effect from 18-4-2006 which reads as follows: Where any servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of this section. Explanation 1 - A person carrying on a business through a branch or agency in any country shall be treated as having a .business establishment in that country. Explanation 2 - Usual place of resident, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted Consequent to introduction of Section 66(A) a corresponding amendment was made to Rule 2(1)(d)(iv) which reads as follows: in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under Section 55A of the Act, the recipient of such service. 8. In the judgment rendered in 2009 (13) S.T.R. 235 (Bom.) (Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on belonging to India are taxed in the hands of the Indian residents. In such case, the Indian recipient of the taxable services is deemed to be a service provider. Before enactment of Section 66A, 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. 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 1-3-2002 till 17-4-2006, in relation to the services received by the vessels and ships of the members of the Petitioners association outside India, from persons who are non-residents of India and are from outs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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