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Issues:
1. Liability of service recipient in India to pay Service Tax when the service provider is a non-resident. 2. Applicability of Service Tax Rules 1994. 3. Service Tax liability for the period before and after 18-4-2006. 4. Recoverability of Service Tax claim made beyond the prescribed period. Analysis: 1. The main issue in this appeal was whether the service recipient in India is liable to pay Service Tax when the service provider is a non-resident or from outside India without any office in India. The Court referred to a previous judgment where it was held that if the service provider is outside the country with no fixed establishment in India, the recipient of the service would be treated as having provided the service in India, making all provisions of Section 66A applicable. Thus, prior to 18-4-2006, the Service Tax was not payable by the recipient in such cases. 2. The Court noted that the Service Tax demand in the present case was for the period both before and after 18-4-2006. It was clarified that there is no liability to pay Service Tax for the period before 18-4-2006 based on the previous judgment. However, for the period after 18-4-2006, the liability exists as confirmed by the Tribunal. Nonetheless, the Court found that the claim for Service Tax made beyond the prescribed period was not recoverable under the law. 3. In conclusion, the Court dismissed the appeal, stating that there was no justification to entertain it. The decision was based on the understanding that while there is no liability for Service Tax before 18-4-2006, the liability for the period after that date exists but the claim made beyond the prescribed period is not recoverable. Therefore, the Court upheld the Tribunal's decision regarding the liability for Service Tax after 18-4-2006 but deemed it not recoverable due to being made beyond the legal timeframe.
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