9911796707
TMI Blog2009 (5) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent. ORDER 1. In adjudication of a show-cause notice dated 30-11-2006, the original authority had confirmed demand of service tax of Rs. 5,37,123 against the assessee under section 73 of the Finance Act, 1994 for the period from October, 2004 to March, 2006 and had also ordered recovery of interest on tax under section 75 of the Act. It had also imposed penalties on the party under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 66A of the Finance Act, 1994 was enacted. In this connection, the Counsel refers to the Bombay High Court's decision in Indian National Shipowners Association v. Union of India [2009] STT 212, wherein it was held that, before enactment of section 66A, there was no authority vested in the Central Government to levy service tax from a person resident in India in respect of services received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on them. S.D.R. has also claimed support from the Supreme Court's judgment in Union of India v. Dharamendra Textile Processors 2008 (231) ELT 3, as also from the order passed by the Court in the case of CCE v. Monarch Pipes Ltd. 2009 (235) ELT A-87 (SC). Referring to the Bombay High Court's judgment relied upon by the Counsel, it is submitted that any penalty related issue was not consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment to levy service tax in the said manner was struck down. On this legal basis, the learned Counsel has argued that the department was not entitled to levy service tax from the appellant qua recipient of intellectual property service from abroad prior to 18-4-2006. The period of dispute in the present case is prior to this date. Therefore, it has been argued that the very levy is unconstitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich struck down the legal source of the present demand of service tax. The Hon'ble Court held that the authority to levy service tax from an Indian recipient of taxable service from abroad was conferred for the first time on the Central Government, without retrospective effect, under section 66A of the Finance Act, 1994 on 18-4-2006. 5. In the result, all the penalties imposed on the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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