TMI Blog2019 (1) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 66A of the Finance Act, 1994 are very clear and unambiguous in the case in hand, post 18.04.2006 the service tax liability needs to be discharged by the appellant as per the provisions of law - appellant had discharged the tax liability and on our direction, has also discharged the interest on 14.01.201 - the tax confirmation along with interest upheld. Penalty - Held that:- Appellant being a Government undertaking, would have been under the bonafide impression that tax liability may not arise. It is also to be noted that during the period in question, the law was in a flux situation, inasmuch as various litigations were pending before various Courts and the matter was settled by Hon’ble High Court of Bombay and Apex Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing authority, after considering the contentions raised by the appellant, did not agree and after following due process of law, confirmed the demands so raised. 4. Ld. Counsel submits that the period involved in this case can be split into two i.e. for the period prior to 18.04.2006 on the date when Section 66A of the Finance Act, 2006 came into statute and post 18.04.2006, wherein the tax liability is to be discharged by the recipient of the services. It is his submission that the issue as to period pre 18.04.2006 was settled by the judgment of Hon ble High Court of Bombay in the case of Indian National Ship Owners Association vs. Union of India [2009(14) S.T.R. 289 (Bom.)] and she submits that it has been upheld by Apex Court. As rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng recipient of services, is liable to pay tax. 7. We find that prior to 18.04.2006, the law is now clearly settled, that no service tax liability arises on the assessee under reverse charge mechanism for the payments made to foreign entities who render services to assessee. Following the ratio of the law settled by the judgment in the case of Indian National Ship Owners Association (supra), we hold that service tax liability, interest thereof and penalties imposed for the payments made to foreign consultants prior to 18.04.2006 is not sustainable and liable to be set aside and we do so. 8. As regards the service tax liability post 18.04.2006, we find that the provisions of Section 66A of the Finance Act, 1994 are very clear and unam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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