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2013 (5) TMI 506 - AT - Service TaxServices received from overseas commission agents - import of service - business auxiliary service - held that - it was held that levy of service tax on a person who is resident in India and who receives services from service provider abroad who does not have an office in India is not sustainable prior to 18.4.06. - decided in favor of assessee.
Issues Involved:
Liability of appellant to pay service tax on services received from overseas commission agents situated abroad without office in India for procuring export orders during 1.1.05 to February 2006. Analysis: The judgment addresses the issue of service tax liability on services received from overseas commission agents without an office in India for procuring export orders. The appeal was filed contesting a demand for service tax of approximately Rs.4 lakhs, which was allowed by the Commissioner (Appeals). The Revenue appealed this decision. The Commissioner (Appeals) relied on the decision of the Hon'ble Bombay High Court in the case of Indian National Ship Owner's Association, where it was held that levy of service tax on a person in India receiving services from a foreign service provider without an office in India is not sustainable before 18.4.06. This decision was upheld by the Apex Court. Additionally, the CBEC issued a circular stating no service tax liability on service receivers for services from foreign providers with offices in India before 18.4.06. The Tribunal, considering the Commissioner (Appeals) decision based on the Bombay High Court ruling upheld by the Apex Court and the circular by CBEC, found the demand for service tax not sustainable. Consequently, the appeal was rejected. The judgment emphasizes the legal precedent set by the Bombay High Court and the subsequent circular by CBEC, which clarified the service tax liability in such cases. The decision provides clarity on the service tax obligations concerning services received from foreign providers without offices in India before 18.4.06, ensuring consistency in tax treatment based on established legal interpretations and administrative guidelines.
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