2009 (5) TMI 390 - AT - Service Tax

Services received from outside India- Reverse Charges- The issue involved in this appeal is the leviability of Service Tax on the appellant who is actually the recipient of management services from a company which is situated abroad for the period from 3/2003 to 3/2004. In the light of the decision of Hindustan Zinc Ltd. v. CCE 2008 -TMI - 30059 - CESTAT-LB held that answer is in favour of assessee allow the appeal.

Summary

Issues: Leviability of Service Tax on the appellant who is the recipient of management services from a company situated abroad for the period from 3/2003 to 3/2004.

The appeal was filed against the Order-in-Appeal No. 155/2005-CE, dated 29-7-2005, passed by the Commissioner of Central Excise (Appeals), Bangalore. The matter was referred to a Larger Bench due to the issue of the leviability of Service Tax on the appellant, who received management services from a foreign company. The Larger Bench, considering a similar case of Hindustan Zinc Ltd., held that the recipient of services from a non-resident company without an office in India was not liable to pay service tax prior to 1-1-2005. The Tribunal concurred with the view expressed in previous cases and allowed the appeal in favor of the assessee, providing consequential relief. The appeal was to be listed before the Division Bench for final disposal according to the law.

This judgment clarifies the leviability of Service Tax on the appellant, who received management services from a company situated abroad. The Tribunal, following the precedent set in the Hindustan Zinc Ltd. case, held that the recipient of services from a non-resident company without an office in India was not liable to pay service tax before 1-1-2005. The Tribunal's decision was based on the interpretation of relevant notifications and rules, providing relief to the assessee in this case. The issue was thoroughly analyzed, and the decision was made in accordance with established legal principles and precedents.

In conclusion, the judgment by the Appellate Tribunal CESTAT, Bangalore, addressed the issue of the leviability of Service Tax on the appellant receiving management services from a foreign company. The Tribunal's decision, guided by the precedent set in a similar case, clarified that the recipient of services from a non-resident company without an office in India was not liable to pay service tax before 1-1-2005. The appeal was allowed in favor of the assessee, providing consequential relief and directing the case to be listed before the Division Bench for final disposal according to the law.