TMI Blog2019 (2) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009 (12) TMI 850 - SUPREME COURT OF INDIA], that the service tax liability will arise for foreign remittances made for import of services for the period 18.4.2006 onwards. In the instant case, since the period in dispute is 01.01.2003 to 31.12.2006, the demand would be restricted to import of taxable service for the period from 18.04.2006 to 31.12.2006 only - the adjudicating authority would accordingly re-compute the final service tax liability for the aforesaid period. Explanation 3 to Section 67 of the Finance Act, 1994 - Held that:- The service tax is payable only when the payment of consideration /foreign remittance is made (cash basis) as per Rule 6 of the Service Tax Rules, 1994. If the contention of the Revenue is accepted, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant (s) Shri S. S. Chattopadhyay, Suptd. (A. R.) for the Revenue ORDER PER SHRI P. K. CHOUDHARY Both the appeals are taken up together for disposal since it involves a common issue arising out of the Order dated 31.03.2009 passed by Ld. Commissioner of Service Tax, Kolkata. 2. Briefly stated the facts of the case are that the appellant is engaged in the manufacture of industrial fans and allied products. The appellant made foreign remittances outside India for availing certain services for use in their manufacturing business. Show Cause Notice dated 04.07.2007 was issued proposing demand of service tax under reverse charge for foreign remittances under various categories viz., Intellectual Property Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand on import of services received from outside India, it is the contention of the assessee that the SCN was issued based on the figures available in the audited Financial Statements which are prepared on accrual basis of accounting. The Ld. Commissioner in the adjudication order has dropped the demand considering the actual payments based on CA certificate, since the liability to pay service tax under reverse charge arises only when the payment is made to the service provider as was the law applicable during the relevant period. It has been further submitted on behalf of the assessee that the Ld. Commissioner has confirmed the demand for the period from 2003 to 2006 ignoring the settled law that no service tax is payable for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade for import of services for the period 18.4.2006 onwards. In the instant case, since the period in dispute is 01.01.2003 to 31.12.2006, the demand would be restricted to import of taxable service for the period from 18.04.2006 to 31.12.2006 only. As stated above, the Ld. CA submitted that the tax payable for the said period is ₹ 1,23,731/- only on cash basis, which has already been paid by them during adjudication. The adjudicating authority would accordingly re-compute the final service tax liability for the aforesaid period. 8. In so far as the appeal filed by Revenue is concerned regarding the portion of demand dropped by Ld. Commissioner, the only ground taken by the Revenue is that Explanation 3 to Section 67 of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner has upheld the entitlement of abatement benefits. The Revenue has filed appeal against the abatement benefits extended by Ld. Commissioner only on the ground that he has not verified the genuineness of the certificates submitted by concerned transporters based on which abatement benefit has been extended. However, we find that no evidence has been provided by the Revenue to doubt the correctness of the said certificates provided by the transporters. 9. In so far as the plea of limitation is concerned, service tax payable under reverse charge on import of services from outside India as well on Goods Transport services would be available as credit and hence, revenue neutral. By respectfully following the Hon ble Supreme Court de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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