2012 (4) TMI 405 - AT - Service Tax

Service Tax liability under the reverse charge mechanism Held that - As the provisions of Section 66A of Finance Act, 1994 were brought into play w.e.f. 18.04.2006 no liability arises of payment of service tax - the issue is no more res-integra - as decided by Hon ble Supreme Court in the case of Indian National Shipowners Association Vs UoI (2010 - TMI - 78723 - Supreme Court of India) in favour of assessee.

Summary

Issues: Condonation of delay in filing cross objection, Service Tax liability under reverse charge mechanism.

In the judgment, the issue of condonation of delay in filing a cross objection was addressed. The applicant sought condonation for the delay in filing the cross objection in Appeal No. ST/241/2010. However, the Tribunal found that the applicant mis-conceived the issue as the entire order-in-appeal was in their favor, and they could not be aggrieved with any portion of the order for filing a cross objection. Consequently, the application for condonation of delay and the cross objection were dismissed as not maintainable.

Regarding the Service Tax liability under the reverse charge mechanism, the Tribunal examined the reliance placed on the judgment of the Hon'ble High Court of Bombay in the case of National Shipowners Association versus Union of India. The Service Tax liability under the reverse charge mechanism was deemed applicable from 01.01.2005 based on the Tribunal's judgment in the case of Hindustan Zinc Ltd, which was upheld by the Apex Court. The Tribunal noted that the issue was settled by the judgment of the Hon'ble High Court of Bombay in favor of the assessee, as upheld by the Hon'ble Supreme Court. The dispute in this case revolved around the Service Tax liability for commission paid to a person abroad before 18.04.2006. Relying on the judgment in the case of National Shipowners Association, the Tribunal held that the impugned order was correct, legal, and free from infirmity. Consequently, the appeal filed by the Revenue was rejected.