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TMI Blog2008 (11) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... for disposal. 2. The issue involved in these appeals is as to whether service tax is payable on the amount paid by the assessee as commission to overseas agent, foreign based company, who had no office in India. The period of dispute is 8.7.04 to 31.3.05 in the case of M/s. Active International and from 9.7.2004 to 30.9.2005 in the case of M/s. Lohia Starlinger Ltd. Adjudicating authority confirmed demand of tax and imposed penalties. Commissioner (Appeals) modified the demand of tax partly in the case of M/s. Active International. So, the Revenue and the assessees both filed the appeals against the order of the Commissioner (Appeals). 3. After hearing both the sides and on perusal of records, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport of service by all possible modes came w.e.f. 18/4/06 when Section 66A was introduced in the Finance Act, 1994 and simultaneously Taxation of Services (Provided from outside India and Received in India) Rules, 2006 were notified vide Notification 11/2006-ST dated 18/4/06. But as discussed above, so far as the taxable services provided from India by a foreigner or non-resident, not having any officer or business establishment in India to a person in India are concerned, these services were taxable even prior to 18/4/06 under Section 66 read with Section 65 (105) of the Finance Act, 1994 and by virtue of Rule 2 (1)(d)(iv) of the Service Tax Rules, 1994 read with Notification 36/04-ST dated 31/12/04 issued under Section 68(2) of the Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hore services are not offshore services. Such offshore services are liable for tax consequent to the amendment w.e.f. 18.4.2006, but for earlier period the same will not be so. 6.9 Service Tax Circular No. 36/4/01 dt. 8.10.2001 hold that service provided beyond the territorial waters will not attract service tax. This circular will be relevant till the amendment brought out in service tax laws by insertion of Section 66A w.e.f. 18.4.2006. Therefore, the appellant's contention that the demands on services relating to identified offshore services cannot be subjected to service tax during the relevant period is acceptable.' 6. We find that the decision of Foster Wheeler Energy Ltd. (supra) considered the CBEC Circular No. 36/4/2001 dated 8.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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