2010 (7) TMI 241 - AT - Service Tax

Reverse Charges - Service tax demand on Intellectual Property Services received from abroad by the assessees in India has been confirmed for the period up to 31-3-2005. Held that - in the light of the various decisions, the service tax liability in their case arises only with effect from 18-4-2006. Thus the entire demand and penalty are not sustainable.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessees, stating that service tax liability for Intellectual Property Services received from abroad in India arises only from 18-4-2006. The demand and penalty imposed from 10-9-2004 to 31-3-2006 were held not sustainable. The assessees' appeal was allowed, and the revenue's appeal was dismissed. (Source: http://www.taxmanagementindia.com/visitor/detail_case_laws.asp?ID=78627)