2011 (7) TMI 684 - AT - Service Tax

Demand - Consultancy Engineering Services - Notification No. 1/99 dated 28.02.1999 - whether during the impugned period i.e. 1999 to 2002, the appellant is liable to pay service tax on the services rendered outside India or not - Supreme Court in the case of Union of India v. Indian National Ship Owners Association - (2009 (12) TMI 850 - SUPREME COURT OF INDIA) wherein it has been held that all the services rendered outside prior to 18.04.2006 service tax is not payable - Decided in favor of the assessee

Summary

Issues:
Whether the appellant is liable to pay service tax on services rendered outside India during the period 1999 to 2002.

Analysis:
The case involved a show-cause notice issued to the respondent for allegedly providing Consultancy Engineering Services falling under Section 65(18) of the Finance Act, 1944 to a company. The adjudicating authority confirmed the demand, which was later challenged by the respondent before the Commissioner (Appeals), who set aside the order. The Revenue appealed against this decision.

During the hearing, the learned SDR represented the Revenue, while no one appeared on behalf of the respondent. The issue was found to be covered by a previous decision of the Hon'ble High Court of Bombay in a specific case. The learned SDR reiterated the grounds of appeal memo, emphasizing the liability of the appellant to pay service tax on the services rendered outside India during the period in question.

The key question in this case was whether the appellant was liable to pay service tax on services rendered outside India from 1999 to 2002. The decision of the Hon'ble High Court of Bombay in a specific case was cited, which was subsequently confirmed by the Hon'ble Supreme Court. The precedent established that service tax is not payable for services rendered outside India prior to a certain date. Based on this legal position, the Tribunal found no merit in the Revenue's appeal and dismissed it, upholding the decision of the Commissioner (Appeals) to set aside the demand.

In conclusion, the Tribunal ruled in favor of the respondent, citing the legal precedent that service tax is not payable for services rendered outside India during the period in question. The decision was based on the established legal position as confirmed by higher courts, leading to the dismissal of the Revenue's appeal.