TMI Blog2019 (6) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... providing for levy of service tax on reverse charge basis on the services procured from outside India. In the terms of the settled law on the subject, no service tax can be demanded for the period upto 17.04.2006. The demand for service tax along with interest and penalties set aside - appeal allowed - decided in favor of appellant. - S. Tax Appeal No.12 of 2009 - Final Order No.75498/2019 - Dated:- 16-1-2019 - MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) And MR.V. PADMANABHAN, MEMBER (TECHNICAL) None for the Appellant Shri S. S. Chattopadhyay, Authorized Representative for the Respondent ORDER PER P.K. CHOUDHARY : When the matter was called, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering design, promotional literature etc. from stock. The appellant against the contract with the non-resident parties paid ₹ 83,56,543/- during the Financial Year, 2005-06. Show-cause notice dated 02.03.2007 was issued alleging, inter-alia, that the said payments are nothing but technical fees and are liable to service tax under Rule 2(i)(d)(iv) read with Section 68 (2) of the Service Tax Rules, 1994, according to which person receiving taxable services from nonresident service providers are held persons liable to pay service tax. Show-cause notice also proposed to invoke extended period of limitation under proviso to Section 73 (1) for alleged non-payment of service tax and non-disclosure of information to the Department regarding r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant received technical knowhow and expertise by the non-resident parties. After investigation into the issue, the Department held that the appellant is liable to payment of service tax under the reverse charge mechanism for the services procured from outside India. Show-cause notice was issued proposing the demand of service tax in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 and Taxation of Services (Provided from outside India and received in India) Rules, 2006. The adjudicating authority passed the following order : 1. I confirm the demand of service tax amounting to ₹ 8,52,761/- under proviso to Sec.73 (2) of the Finance Act, 1994 read with Section 68 ibid and the amount confirmed is appropriated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subject matter of numerous litigation, which was settled by the Hon ble Supreme Court in the case of Union of India Vs. Indian National Shipowners Association : 2010 (17) STR J57 (SC). The Hon ble Supreme Court upheld the decision of the Hon ble Bombay High Court in the case of Indian National Shipowners Association as reported in 2009 (13) STR 235 (Bom.). It stands settled that the charge of service tax on the recipient of service is payable only after introduction of Section 66A of the Finance Act, 1994 w.e.f. 18.04.2006. We find that in the present case, the period is of 2005-06. The demand has been made on the reverse charge basis on the services procured by the appellants from the persons located outside India, against payments mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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