2011 (7) TMI 631 - AT - Service Tax

Recipient of service provided by the foreign service provider - whether liability to pay service prior to 18.04.06 arises? - Held that - Service receipt is not liable for service tax prior to 18/4/2006 in respect of the service received from Foreign Service Provider as decided in Iandian National Shipowners Association vs. Union of India (2010 (12) TMI 12 (SC)) - in favour of assessee

Summary

Issues:
Whether the recipient of service provided by a foreign service provider is liable to pay service tax prior to 18.04.06.

Analysis:
The appellant filed an appeal against the order passed by the Commissioner(Appeals) regarding the liability of the recipient of services provided by a foreign service provider to pay service tax before 18.04.06. The appellant received services from the foreign service provider between October 2004 to March 2006, which is undisputed. The issue was settled by the Hon'ble Bombay High Court in the case Indian National Shipowners Association vs. Union of India, where it was held that the service recipient is not liable for service tax prior to 18/4/2006 for services received from a foreign service provider. This decision was affirmed by the Hon'ble Supreme Court as well.

The Appellate Tribunal, in light of the settled legal position, set aside the impugned order as the services were received by the appellant before 18th April 2006. Therefore, the appeal was allowed based on the established legal precedent.