TMI Blog2024 (1) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... ational Shipowners Association [ 2008 (12) TMI 41 - BOMBAY HIGH COURT ] has held that Respondents are restrained from levying service tax from the members of the Petitioners association for the period from 1-3-2002 till 17-42006, in relation to the services received by the vessels and ships of the members of the Petitioners association outside India, from persons who are non-residents of India and are from outside India. In view of the settled position of law the said action of the respondents is illegal and in such circumstances, the impugned order dated 17.08.2007 passed by the Customs Excise Service Tax Appellant Tribunal, New Delhi is hereby set aside and consequentially the orders dated 17.06.2005 passed by the Deputy Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-resident service provider has already been decided by the Bombay High Court in Indian National Shipowners Association Vs. Union of India, MANU/MH/1312/2008, wherein it is clearly held that the respondent department cannot levy service tax for the services received from a non-resident service provider for the period prior to 18.04.2006. It is submitted that the SLP filed on behalf of the respondents against the decision rendered by the Bombay High Court in Indian National Shipowners Association (supra) has already been dismissed by the Hon ble Supreme Court on 14.12.2009. 5. It is submitted that the Gujarat High Court in the case of the Commissioner, Service Tax Vs. Quintiles Data Processing Centre (I) Pvt. Ltd., MANU/GJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 64 gives powers to the Central Government to make rules for carrying out the provisions of the Chapter. The chapter relates to taxing the services which are provided, the taxing on the value of the service and it is only the person who is providing the service can be regarded as an assessee. The rules therefore, cannot be so framed as not to carry the purpose of the Chapter and cannot be conflicted with the provisions in Chapter V of the Act. In other words, as the Act makes the person who is providing the service liable, the provisions in the Rules cannot be made which makes the recipient of the service liable. It is, thus, clear that the provisions of Rule 2(1)(d)(iv) are clearly invalid. 18. So far as reliance placed on the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (105). That explanation was added by Finance Act, 2005 with effect from 16-62005. That explanation reads as under: Explanation - For the removal of doubts, it is hereby declared that where any service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India and such service is received or to be received by a person who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India, such service shall be deemed to be taxable service for the purposes of this clause. By this explanation services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondents got legal authority to levy service tax on the recipients of the taxable service. Now, because of the enactment of Section 66A, a person who is resident in India or business in India becomes liable to be levied service tax when he receives service outside India from a person who is non-resident or is from outside India. Before enactment of Section 66A it is apparent that there was no authority vested by law in the Respondents to levy service tax on a person who is resident in India, but who receives services outside India. In that case till Section 66A was enacted a person liable was the one who rendered the services. In other words, it is only after enactment of Section 66A that taxable services received from abroad by a perso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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