2012 (10) TMI 1022 - HC - Central Excise

Summary

Issues involved: Appeal by Revenue u/s 35G of Central Excise Act challenging Tribunal's order on service tax for coaching services received abroad by employees.

Question a: Whether Tribunal rightly considered Circular No.59/8/2003, Section 65 of Finance Act, and Service Tax Rules in case of M/s. Maersk (I) Ltd.?

Question b: Whether Tribunal correctly confirmed Commissioner's order without considering GATS agreement regarding service tax liability on training services consumed in business activities?

Question c: Whether Tribunal erred in dismissing appeal when services were received by Maersk employees abroad and reimbursed by Maersk, thus incurring the cost?

Summary: The appeal concerned service tax demand on coaching services abroad for employees of the respondent. The demand was based on Sections 65(105)(zzc) and 66A of the Act. The Assistant Commissioner confirmed the demand and imposed penalties. The Commissioner (Appeals) later held no service tax was payable as services were fully performed outside India. The Tribunal upheld this decision, stating coaching was availed by employees, not the respondent. The appellant did not challenge the decision for the period before 18.04.2006 but argued for tax liability post that date. However, the Court held that coaching services performed abroad and reimbursed by the respondent did not attract service tax under Rule 3(ii) of Taxation of Service Rules. The appeal was dismissed as no substantial questions of law were raised.