2009 (5) TMI 56 - HC - Service Tax

Architectural Services Import of Service Rule 2(1)(d)(iv) service tax on import of service was not leviable during the relevant period demand set aside.

Summary

The High Court of Delhi, consisting of Hon'ble Mr. Justice Vikramajit Sen and Hon'ble Mr. Justice Rajiv Shakdher, recently heard an appeal against a judgment passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in 2008. The appellant, a recipient of architectural services from a non-resident, was called upon to pay service tax under the Service Tax Rules. The CESTAT concluded that the appellant was liable to pay service tax only from 1.1.2005 onwards, based on a notification issued under the Finance Act, 1994. The appellant contested this decision, citing a judgment from the Bombay High Court, and questioned the CESTAT's ruling for the period 1.1.2005 to 15.6.2005. The court agreed with the appellant, referencing the Bombay High Court's judgment, and ruled in the appellant's favor, setting aside the CESTAT's judgment. The appeal was allowed with no costs awarded.