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TMI Blog2009 (8) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... service is liable to be imposed with service tax only on the ground that service provider is a non-resident and is a person who is situated outside India. We find that this issue is no more res-integra as the issue has been settled by the Hon’ble High Court of Bombay in the case of Indian National Shipowners Association [2009 - TMI - 32013 - HIGH COURT OF BOMBAY] holding recipient as liable from 18-4-2006 - The appeal is allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellants and confirmed the duty liability, visited the appellant with penalties and interest liabilities. Hence these appeals 4. Learned counsel appearing on behalf of the appellants would draw our attention to the fact that the services were received by the appellants from the persons who are non-resident or from outside India. It is the submission that the service tax liability on the recipient of the services would come into effect only from 18-4-06 when section 66A was brought into Finance Act. Learned counsel would rely upon the decision of the Hon'ble High Court of Bombay in the case of Indian National Shipowners Association v. UOI - 2009 (13) S.T.R. 235 and Unitech Ltd v. CST Delhi [2009 (15) S.T.R. 385 (Del.)]. 3. It is hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no more res-integra as the issue has been settled by the Hon'ble High Court of Bombay in the case of Indian National Shipowners Association (supra). We may reproduce the said ratio. "16. Now, so far as the notification dated 1st March 2002 quoted above which is relied on for justifying levy of service tax from 1-3-2002 is concerned, perusal of that notification shows that by that notification service which is rendered or provided in the Continental Shelf Exclusive Economic Zone and Territorial Waters of India has been made, taxable. That notification does not have the effect of levying service tax on the recipients of the service. Therefore, levy of service tax on the members of the Petitioners-association on the basis of notification dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions in Chapter V of the Act. In other words, as the Act makes the person who is providing the service liable, the provisions in the rules cannot be made which makes the recipient of the service liable. It is, thus clear that the provisions of Rule 2 (1) (d) (iv) are clearly invalid. 18….. 19….. 20….. 21. In the result, therefore, the petition succeeds and is allowed. Respondents are restrained from levying service tax from the members of the Petitioners-association for the period from 1-3-2002 till 17-4-2006, in relation to the services received by the vessels and ships of the members of the Petitioners-association outside India, from persons who are non-residents of India and are from outside India." 7. It is also seen that in an i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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