2010 (5) TMI 115 - AT - Service Tax

Reverse Charges- The demand of service tax together with interest confirmed against the appellants herein during the period March, 00 to Sept, 02 who had entered into a technical collaboration agreement with M/s.Halla Climate Control (hereinafter referred to as HCC), a South Korean company. In the light of the decision of Indian National Shipowners Association Vs Union of India 2009 -TMI - 32013 - HIGH COURT OF BOMBAY, held that- set aside the demand confirmed on the ground that service rendered by HCC to the appellants fell under the category of Consulting Engineering Services , together with interest and the penalty of equal amount, and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in Final Order No.______ that the demand of service tax of Rs.62,35,745/- along with interest against the appellants for technical collaboration with a South Korean company is not sustainable. The tribunal set aside the demand based on the decision of the Bombay High Court regarding service tax liability on services provided by foreign service providers, effective from 18.4.2006. The appeal was allowed, and the penalty was also set aside. (Citation: 2010 (5) TMI 115 - CESTAT, CHENNAI)