9911796707
TMI Blog2013 (2) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... ectual Property Service” – Held that:- The continuous payment of royalty by the appellant proves that the transfer of technical know-how is not on one time affair and the up-gradation of the same is taking place for which the royalty charges are being paid during the disputed period. Assessee is liable to pay Service tax under IPR Service – Against the assessee. Further Section 66A was inserted by Finance Act,2006 w.e.f. 18-04-2006 – because of the enactment of Section 66A, a person who is resident in India or business in India becomes liable to be levied service tax when he receives services outside India from a person who is non-resident or is from outside India – Therefore assessee is liable to pay Service tax along with interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osing to demand Rs. 17,99,176/- towards Service tax, Ed. Cess and SHE cess under proviso to sub-section (1) of Section 73 of the Finance Act, 1994 along with applicable interest under Section 75 read with Rule 6 of the Service Tax Rules, 1994 besides proposal to impose penalties under Section 76 read with Rule 6 of the Service Tax Rules, 1994, under Section 77 read with Rule 7 of the Service Tax Rules, 1994, of the Finance Act, 1994 and under Section 78 of the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994 were issued to the appellant. After due process of law, the Lower Adjudicating Authority confirmed the proceeding initiated in the Show Cause Notices. 3. Aggrieved, the appellant has filed this appeal mainly on the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Authority erred in imposing penalties under Sections 76, 77 and 78 of the Finance Act, 1994 as there is no scope for penalty in terms of these proviso and in the facts and circumstances of this case; 4. A personal hearing was held on 13-6-2011 and Shri M. Kannan, Advocate appeared on behalf of the appellant and reiterated the submission already made in the appeal. The appellant submitted that their case is covered by Indian National Shipowners Association v. Union of India [2010 (17) S.T.R. J57 (S.C.)] where-in it was held service tax liability on import of service would be applicable from 18-4-2006. Further the advocate submitted a copy of decision in the case of M/s. Bharathi Hexacom Ltd. v. CCE, Jaipur reported in 2009 (15) S.T.R. 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther the appellant had contended that if at all they are liable to pay Service tax as service receiver, they are liable to pay the same w.e.f. 18-4-2006. In this connection, it is pertinent to note that the Hon ble High Court of Delhi in the latest judgment in the case of M/s. Unitech Limited v. Commissioner of S. Tax, New Delhi - 2009-TIOL-293-HC-DEL-ST = 2009 (15) S.T.R. 385 (Del.) has held as follows : 5. In the present appeal, the assessee is aggrieved only with respect of its liability for the period 1-1-2005 to 15-6-2005. 5.1 In view of the above the following substantial question of law has arisen for our consideration : Whether the Tribunal misdirected itself in law in coming to the conclusion that the assessee will be liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axed in the hands of the Indian residents. In such cases, the Indian recipient of the taxable services is deemed to be a service provider. Before enactment of Section 66A, there was no such provision in the Act and therefore, the Respondent had no authority to 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. 22. Rule made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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