2009 (2) TMI 113 - AT - Service Tax

Import of services - leviability of Service Tax on the service recipient prior to 1-1-2005 - issue referred to the Larger Bench has already been decided in the case of Hindustan Zinc Ltd - department has gone in appeal against the said Larger Bench decision to the Supreme Court and Hon ble Supreme Court has dismissed the department s appeal - In these circumstances we answer the issue in favour of the assessee - held that as a recipient of the consulting engineer service from outside India the appellant was not liable to pay service tax prior to 1-1-2005

Summary

The Appellate Tribunal CESTAT Bangalore-LB citation 2009 (2) TMI 113 - CESTAT Bangalore-LB involved a case where the issue of leviability of Service Tax on the service recipient prior to 1-1-2005 was referred to the Larger Bench. The Larger Bench, constituted to hear the matter, decided in favor of the assessee, stating that the recipient of the taxable service from outside India could not be held liable for paying service tax prior to 1-1-2005. The learned Cost Accountant for the appellant argued that the issue had already been decided by the Larger Bench, and thus the question should be answered in favor of the assessee. The learned JCDR for the respondent mentioned that the department had appealed against the Larger Bench's decision to the Supreme Court, but the Supreme Court dismissed the appeal. The Tribunal, after careful consideration, answered the issue in favor of the assessee, in line with the decision in the case of Hindustan Zinc Ltd. The appeal was scheduled for final disposal before the Division Bench on 4th March 2009. The order was pronounced on 16th February 2009.