2010 (4) TMI 121 - AT - Service Tax

Import of services - services received by the appellants from non-resident persons during the period 1.1.2005 to 31.3.2005 Held that Import of services were not taxable during the relevant period

Summary

Issues:
1. Whether services received by the appellants from non-resident persons were liable to tax in the hands of the recipient assessee.
2. Validity of the appeal filed by the Revenue against the decision of the Commissioner (Appeals).
3. Consideration of the preliminary objection raised by the Respondents regarding the absence of applicable law for adjudication and recovery.

Analysis:
1. The Commissioner (Appeals) allowed the appeal filed by the assessee, stating that the services received from non-resident persons during a specific period were not taxable for the recipient assessee, citing the Indian National Shipowners Association case. The Revenue appealed this decision, but the Tribunal found no legal inconsistency in the Commissioner's order. As the Supreme Court had dismissed a related case filed by the department, and no material indicated a difference in the present case, the Tribunal upheld the preliminary objection raised by the Respondents and dismissed the Revenue's stay application and subsequent appeal.

2. The Tribunal noted the objection raised by the Respondents regarding the absence of a relevant law for adjudication and recovery, which was followed by the Commissioner (Appeals) in allowing the appeal of the assessee. The Revenue contested this proposition, but the Tribunal found no legal inconsistency in the Commissioner's decision and dismissed the Revenue's stay application and appeal. The Tribunal emphasized that in the absence of substance in the appeal, the appeal filed by the Revenue was also dismissed, and the miscellaneous application for early hearing was allowed.

3. The Tribunal, consisting of Hon'ble Dr. C. Satapathy and Hon'ble Mr. D.N. Panda, delivered the final order, with Member (Judicial) Mr. D.N. Panda providing the detailed analysis. The Tribunal's decision was based on the lack of legal inconsistency with the Commissioner (Appeals) order and the dismissal of a related case by the Supreme Court. The Tribunal upheld the preliminary objection raised by the Respondents and dismissed the Revenue's stay application and appeal, ultimately allowing the miscellaneous application for early hearing.