TMI Blog2018 (10) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... charge mechanism though has been introduced by insertion of Section 66A of the Finance Act, 1994, but ultimately the issue is settled by the Hon'ble Supreme Court in Indian National Ship Owners Association case [2009 (12) TMI 850 - SUPREME COURT OF INDIA] - Thus, there is sufficient cause for not discharging Service Tax by the appellant during the period in dispute. Penalty set aside by invoking section 80 - demand of Service tax with Interest upheld - appeal allowed in part. - Appeal No. ST/85136/2014 - A/87405/2018 - Dated:- 26-7-2018 - DR. D.M. MISRA, MEMBER (JUDICIAL) And MR. S. SRIVASTAVA, MEMBER (TECHNICAL) Shri Sachin Chitnis, Advocate for Appellant Shri M.P. Damle, AC (AR) for Respondent ORDER Per: Dr. D.M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal. 3. Learned Advocate Shri Sachin Chitnis for the appellants, at the outset, submits that the appellants are not disputing the Service Tax liability. However, the present dispute relates to imposition of penalties on them. It is his contention that the appellant had paid the entire amount of Service Tax on SWIFT charges, under reverse charge mechanism for the period from 18.4.2006 to 30.9.2009. Since they were under the bona fide belief that the provider of services is being situated outside India and the recipients of service were also situated outside India, therefore, the services received by them from SWIFT is not taxable, in view of Section 64 of the Finance Act, 1994 read with CBE C Circular No. 36/4/2001 dated 8.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts have paid the entire amount of Service Tax for the services received from the overseas provider of services i.e. SWIFT during the relevant period and liable to discharge Service Tax under reverse charge mechanism. The applicability of Service Tax under reverse charge mechanism though has been introduced by insertion of Section 66A of the Finance Act, 1994, but ultimately the issue is settled by the Hon'ble Supreme Court upholding the judgment of Hon'ble Bombay High Court in Indian National Ship Owners Association case (supra). Thus, there is sufficient cause for not discharging Service Tax by the appellant during the period in dispute. Hence, it is a fit case to invoke Section 80 of the Finance Act, 1994. Consequently, the penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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