9911796707
TMI Blog2011 (1) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 2. The assessee is a wholly owned 100% subsidiary of Metro Cash and Carry, Germany, and operates cash and carry distribution centres in India. MCC, Germany is the management entity for ail cash and carry activities of Metro group worldwide. MCC, Germany is the proprietor of the trademark, service mark, brand name 'Metro'. MCC India, i.e., the assesses has entered into a License Agreement dated 4-10-2001 with MCC Germany wherein MCC Germany granted rights to use the trademarks and rights to use the proprietary know-how in managing cash and carry business in India. Under the terms of the agreement, the assessee is required to pay an annual royalty equal to an amount of 1% of the assessee's net annual proceeds on sales of goods. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elying on the judgment of the Bombay High Court, which was affirmed by the Apex Court, the liability is only after 18-4-2006 and no liability could be foisted earlier to this period. Therefore, it set aside the impugned order, both the demands as well as the liability. Aggrieved by the said order of the tribunal, the revenue is in appeal. 4. The learned counsel for the revenue contended that the tribunal committed a serious error in not deciding the appeal on merits. It is an appeal preferred by an assessee. Therefore, the order impugned requires to be set aside and the matter is required to be remanded back to the tribunal for fresh consideration and for a decision on merits. It is only, thereafter, it would be appropriate to find ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued, the Central Government has specifically states that the recipient of the service is liable to pay tax. It is in this background, it is necessary to see what the parliament did. Probably after noticing this loophole, they have amended the Act by Finance Act, 2006, which came into effect from 2006 providing for the recipient of such service as the person liable to pay the service tax. 6. This provision and the notifications came up for consideration before the Bombay High Court in the case of Indian National Ship Owners Association v. Union of India reported in 2008 TIOL 633 High Court-MUM-ST = 2009 (13) S.T.R. 235 (Bom.). It was declared that notwithstanding the aforesaid notifications, the liability to pay service tax by the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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