2010 (2) TMI 521 - AT - Service Tax

Services of foreign agents - to procure export orders for which he paid commission - liable to pay service tax under Business Auxiliary Services - recipient of services from persons residing abroad and who had no office in India Held that - before enactment of section 66A, there was no authority vested by law in the departmental authorities to levy service tax on a person who is residing in India, but who receives services from outside India

Summary

The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant engaged in manufacturing Heat Resistant Latex Rubber, who availed services of foreign agents for export orders. The appellant was held not liable to pay service tax under 'Business Auxiliary Services' for services received from abroad before the introduction of section 66A in the Finance Act, 1994. The impugned order demanding tax and penalties was vacated, following the judgments of the Hon'ble High Court of Bombay and the Apex Court.