TMI Blog2018 (7) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... demand prior to 18.04.2006 cannot, therefore, sustain - demand set aside. For the period post 18.04.2006 - Penalty - service tax with interest was paid - Held that:- The issue whether an assessee is liable to pay service tax on reverse charge basis was under litigation and there was much confusion with regard to the said issue during the relevant period - Being an interpretational issue, no penalties can be imposed on the appellant in regard to the amount of ₹ 6,83,897/- pertaining to Commercial Coaching and Training Services imparted in India post 18.04.2006 - demand with interest upheld - penalties cannot be levied. Training conducted by the appellant outside India for the period post 18.04.2006 - Rule 3(ii) of the Taxation of Services (provided from outside India and received in India) Rules, 2006 - Held that:- Though the learned AR has made a frail effort to argue that the training conducted abroad is a continuation of the training conducted by appellants in India, he has not been able to support this by any allegation raised in the SCN or by any evidence. In fact, in Annexure to the SCN, the charges collected by appellant for training imparted in various places ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing submission regarding the correlation between input services and output service which is shown in the table below: Sl. No. Input Service Usage in Output Service 1. Outdoor Caterer Services Appellant provides service to the group companies located across the globe in different countries. The services are provided round the clock and the employees are required to work on shift basis. As there is no facility nearby the office premises, where the employees can quickly go and have their food and come back, the Company provides the food and snacks to the employees at the office cafeteria itself. The Company has to mandatorily provide this service in terms of the requirement under the statutory labour laws. 2. Rent-a-cab Services The Appellant provides service to their group companies located across the globe. Due to difference between the time zones of those countries, the services are provided round the clock. The company hires cabs for picking their employees from their residence and drops them back. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d service tax for the services relating to Commercial Coaching and Training Services for the period from 01.01.2005 to 18.04.2006 for the services which have been performed abroad. The total demand for the said services is ₹ 12,83,005/-. Out of this, an amount of ₹ 6,83,897/- relates to services/training conducted in India for the period after 18.04.2006. The appellant admits this liability and has paid the same along with interest. An amount of ₹ 2,90,569/- pertains to charges for training conducted outside India for the period after 18.04.2006 and services having been performed outside India do not attract the levy of service tax. That the service in the nature of Commercial Coaching and Training Service is a performance based service and, therefore, as services are performed outside India, no service tax is payable. Further, that the levy of service tax prior to the period 18.04.2006 cannot sustain as decided by the Hon ble Apex Court in the case of Union of India Vs. Indian National Shipowners Association, 2010 (17) S.T.R. J57 (S.C.). He also relied upon the decision in the case of C.C.E. Vs. Lumax Samlip Industries Ltd, 2015 (39) S.T.R. 787 (Mad.) to argue t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of Indian National Shipowners Association (supra), that an assessee would be liable to pay service tax under reverse charge mechanism for the services provided abroad only w.e.f. 18.04.2006. The demand prior to 18.04.2006 cannot, therefore, sustain. The details of the demand in respect of Commercial Coaching and Training Services as per the impugned order as given by the learned Counsel for appellant, is as below: Particulars Amount (Rs.) Demand pre 18.04.2006 A 3,08,539 Demand post 18.04.2006 ( Rs. 9,74,466/-) For training conducted in India B1 6,83,897 For training conducted outside India B2 2,90,569 Demand under Commercial Coaching and Training Service as per the impugned OIO C = A + B1 + B2 12,83,005 7.3 It is seen that the appellants have conducted training in India post 18.04.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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