2009 (6) TMI 466 - AT - Service Tax

Services received from outside India- reverse charges- The issue relates to liability of service tax of the appellant for the period from 1-1.2005 to 17.4.2006 on the services received outside India. In the light of the judgment of Indian National Shipowners Association v. Union of India 2009 -TMI - 32747 - BOMBAY HIGH COURT held that the section of reverse charges introduced w.e.f. 18.04.2006, thus the appellant is not liable to pay tax.

Summary

The appellate tribunal CESTAT, Mumbai, consisting of Justice R.M.S. Khandeparkar and Technical Member A.K. Srivastava, heard an appeal regarding service tax liability before 18-4-2006. The limited issue was whether the appellant was liable to pay service tax for the period before 18-4-2006, when section 66A was incorporated in the Finance Act, 1994. The advocate for the appellant argued that the issue was settled by the Bombay High Court in Indian National Shipowners Association v. Union of India. The High Court had ruled that service tax liability only arose after the enactment of section 66A on 18-4-2006. Since the facts of the appellant's case were similar, the tribunal held that the appellant was not liable for service tax before 18-4-2006, and therefore set aside the impugned order. Additionally, the tribunal allowed the appeal and directed the registry to place the appeal for hearing immediately, based on the decision of the Bombay High Court in Writ Petition No. 1449 of 2006.