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2009 (9) TMI 670 - AT - Service TaxScientific and technical consultancy- Services received from outside India- . The issue involved in this case is regarding service tax payable by the appellants during the period from 16-8-2002 to 31-3-2007 for the services rendered by the respondent under the category of Scientific and Technical Consultancy Services . It is undisputed that the respondent has received the said services from a foreign firm. The Commissioner (Appeals) has come to the conclusion that for the period from 16-8-2002 to 18-4-2006, the respondent, being a recipient of the services is not liable to service tax. It is the finding, that the respondent has discharged the service tax liability from 18-4-2006.In the light of the decision of Indian National Shipowners Association v. Union of India 2009 -TMI - 32013 - HIGH COURT OF BOMBAY, held that uphold the order of Commissioner (Appeals) and reject the appeal filed by the revenue.
In the appellate judgment by the Appellate Tribunal CESTAT, Bangalore, the issue at hand was the service tax payable by the appellants for services rendered under the category of 'Scientific and Technical Consultancy Services' between August 16, 2002, and March 31, 2007. The respondent had received these services from a foreign firm. The Commissioner (Appeals) concluded that the respondent was not liable to pay service tax for the period from August 16, 2002, to April 18, 2006, as per the judgment of the Hon'ble High Court of Mumbai in the case of Indian National Shipowners Association v. Union of India. The Commissioner's decision was based on the introduction of section 66A by the Finance Act, 2006, which authorized the levy of service tax on recipients of taxable services from abroad starting from April 18, 2006. The tribunal upheld the Commissioner's decision, dismissing the appeals filed by the revenue, and rejected the stay petition. This case highlights the importance of legal authority in determining service tax liability for services rendered by foreign establishments to Indian entities.
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