2006 (11) TMI 716 - AT - Service Tax

Summary

Issues involved: Confirmation of Service Tax demand against a consultancy firm situated in Singapore providing services to a firm in Goa without jurisdiction.

Summary:

1. The Appellate Tribunal CESTAT MUMBAI addressed the issue of the confirmation of a Service Tax demand of Rs. 3,56,015/- along with penalties against a consultancy firm based in Singapore providing services to a firm in Goa. The demand was confirmed against the Singapore firm, raising questions about the jurisdiction of the Indian Service Tax authorities over a foreign entity.

2. The appellant's advocate clarified that the demand was not confirmed against the service receiver. It was highlighted that during the period of demand from 1999-2000 to 16-8-2002, there were no provisions for the recovery of Service tax from the service receiver. Citing the Tribunal's decision in the case of Bajaj Auto Ltd. v. CCE & C, Aurangabad, it was argued that the provisions introduced from 16-8-2002 could not have a retrospective effect.

3. Upon hearing the submissions, the Tribunal acknowledged that the appellant, a Singapore firm, did not fall within the jurisdiction of the Indian Service tax authorities. Recognizing a prima facie case on merits, the Tribunal decided to dispense with the condition of pre-deposit of duty and penalty.

4. Given the straightforward nature of the issue, the Tribunal scheduled the appeal for final disposal on 27-11-06, aiming for a prompt resolution of the matter.