2007 (3) TMI 80 - AT - Service Tax

Import of service Revenue contended that service provider is of outside India and the service recipient is of India and the tax liability is determine by the Rule 2(d) (iv) of the STR, 1944 - Held that revenue contention was right

Summary

The Appellate Tribunal CESTAT, Kolkata allowed the Revenue's appeal, remanding the case to the lower authority to determine liability based on Rule 2(d)(iv) of the Service Tax Rules, 1994. The recipient may be liable for service tax if the service provider is from a country outside India and the service is received in India. The lower authority's order should be clear and self-speaking for higher court scrutiny. The case was remanded for a clear conclusion based on the definition of "Person liable for paying service tax" under Section 2(d)(iv) of the Finance Act, 1994.