2014 (2) TMI 956 - AT - Service Tax

Payment of service tax using CENVAT credit account under reverse charge mechanism for the services availed by them overseas. - first issue is whether the respondent has paid any remuneration towards the service received or not? - Held that - no amount is paid, therefore, payment of service tax does not arise. - Decided against the revenue.

Summary

The Appellate Tribunal CESTAT MUMBAI ruled that service tax under reverse charge mechanism is not payable if no remuneration is paid for overseas services. The appeal by the revenue was dismissed as no payment was made, and the stay petition was also disposed of accordingly.