TMI Blog2018 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... rse charge mechanism on the commission paid to foreign agents was under much dispute during the relevant period. Section 66A was introduced with effect from 18.04.2006 and the Hon'ble Bombay High Court in the case of Union of India Vs. Indian National Ship Owners Association [2010 (12) TMI 12 - Supreme Court of India] observed that assesse is not liable to pay service tax prior to introduction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants submitted shipping bills and connected documents along with ARE-1. In this regard, they have been paying commission to the agents in respect of the exported goods. Hence, the services as a Commission Agent is liable to service tax, as Business Auxiliary Service' under section 65(19) of the Finance Act, 1004. The period of dispute is July, 2006 to March, 2007. The department was of vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 67 of Finance Act, 1994, value of any taxable service shall be the gross amount charged by the service provider for such services rendered by him. 2.4 From the above definition, it is clear that the liability of service tax with regard to commission paid to overseas agent lies with M/s. VSF, the service recipient and hence, they are liable to pay service tax on the gross amount paid by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Heard both sides. The period involved (7/2006 to 3/2007) being post 18.04.2006 the appellants have submitted that they are contesting only the imposition of penalties. The issue whether assesse is liable to pay service tax under reverse charge mechanism on the commission paid to foreign agents was under much dispute during the relevant period. Section 66A was introduced with effect from 18. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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