2008 (7) TMI 73 - AT - Service Tax

Whether the respondents were liable to pay interest u/s 75 on the amount of service tax paid by them on the services received from abroad for the period 28-2-1999 to 16-8-2002 service tax on import of services was introduced only w.e.f. 16-8-2002 vide Notification No. 12/2002 - since there was no service tax liability before 16-8-02, there cannot be any interest liability either revenue appeal is dismissed

Summary

The appeal by the Revenue was dismissed by the Appellate Tribunal CESTAT, CHENNAI. The question was whether the respondents were liable to pay interest under Section 75 of the Finance Act, 1994 on service tax paid for services received from abroad before 16-8-2002. The Tribunal ruled that before 16-8-2002, recipients like the respondents were not liable to pay service tax on services from non-resident providers without offices in India, so there was no interest liability. The impugned order was sustained, and the appeal was dismissed on 4-7-2008.