2008 (7) TMI 299

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..... appellants received services in the category of 'Business Auxiliary Service' (BAS) from persons based abroad. The assessee is engaged in the manufacture of egg products which are exported. The agents based abroad canvasses orders for the product of the assessee. The assessee compensates the agents by paying commission. 2. After due process of law, the original authority dropped the proposal to d .....

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..... es in India, levy was imposed by enacting Section 66A in the Act. This Section was introduced with effect from 18-4-06. Even though as per the explanation to clause 105 of Section 65 introduced on 16-6-05 such service rendered abroad was taxable service, the charging section namely 66A was enacted only on 18-4-06. Therefore, the impugned demand and accompanying penalties are not sustainable in law .....

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..... taxable service which is provided by a person who is residing outside India is liable to service tax. The corresponding Rule 2 the Service Tax Rules also amended thereafter. I find that prior to the introduction of Section 66A of the Finance Act there was no charging Section under the Act. Further, I find that the Tribunal in the case of Foster Wheeler Engg. Ltd. (supra) held that the recipient o .....

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