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TMI Blog2009 (6) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... of the decision of Indian National Shipowners Association v. UOI 2009 -TMI - 32013 - HIGH COURT OF BOMBAY, held that- section 66A, was introduced from 18.4.2006, thus no liability to pay service tax before this period thus appeal is allowed. - ST/52 OF 2005 - 1016 OF 2009 - Dated:- 23-6-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER AND T.K. JAYARAMAN, TECHNICAL MEMBER M.S. Nagaraja for the Appellant. Ms. Joy Kumari Chander for the Respondent. ORDER M.V. Ravindran, Judicial Member - This appeal is directed against the OIA No. 95/2005CE, dated 29-3-2005. 2. The relevant facts that arise for consideration are :— The appellants had entered into an agreement with M/s. Jindal Vijaynagar Steel Ltd. ('JVSL') for providing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant as indicated in the article 2.1 of agreement, which would indicate that they are only recruiting the manpower in Russia and they are doing nothing more than that. It is his submission that the appellant carried out their entire activity of selection of specialists in Russia and CIS countries in terms of the contract. It is his submission that at the most of the activity of the appellant can be considered as "supply of manpower" which was not taxable till 16-6-2005. He would also submit that CBEC's Circular No. 36/4/2001, dated 8-10-2001 clearly clarifies that provisions of Service Tax apply only to the whole of India except State of Jammu and Kashmir. He would submit that after reading the circular, even the services which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or consideration :— (a) Whether the services rendered by the appellant who is situated beyond the territorial waters of India is liable to service tax? (b) Whether the services can be taxed for the period April, 1999 to March, 2000 as the services rendered were from a foreign country to a person situated in India. 6. As regards the first issue, it is undisputed that the appellant is situated in a foreign country i.e., Russia. The perusal of the contract entered by the appellant with M/s. JVSL indicate that the obligation of the appellant is as under :— "2.1.1 Selection of suitable specialists in Russian Federation/CIS countries and their deputation to India. 2.1.2 All visa and other formalities in Russia/CIS countries for the expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he whole of India except the State of Jammu and Kashmir. The expression 'India' includes the territorial waters of India. Indian territorial waters extend up to twelve nautical miles from the Indian land mass. Chapter V of the Finance Act which governs the levy of Service Tax has not extended to the levy to designated areas in the Continental Shelf and the Exclusive Economic Zone of India (as has been done in case of Central Excise vide Notification No. 166/87-CE., dated 11-6-1987 and in case of Customs by Notification Nos. 11/87-Cus., dated 14-1-1987 64/97-Cus., dated 1-12-1997). It is, therefore, clarified that the services provided beyond the territorial waters of India are not liable to service tax as provisions of service tax have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue against many assessees for taxing the services so received by them. Hon'ble High Court of Bombay in the case of Indian National Shipowners Association (supra) has settled the issue in a writ petition which was filed before them. The said ratio is as under :— "(20) It appears that a similar provision in the rules was made applicable by the Government in relation to the Clearing Agents by making customers of the Clearing Agent liable for levy of the service tax. That question has been decided by the Supreme Court by its judgment in the case of Laghu Udyog Bharati (supra) and the Supreme Court has clearly laid down that the imposition of the service tax is on the persons rendering the services and by making a provision in the Rules, levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy service tax on the members of the Petitioners-association. (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." On this ground also, the impugned order is unsustainable. 10. Accordingly, we find that on both issues as framed by us, the impugned order is unsustainable and is liable to be set aside and we do so. Impugned order is set aside and the appeal is allowed with consequent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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