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TMI Blog2014 (5) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... n territory, have provided business franchise service and, therefore, the royalty charged by the appellant from M/s. Goeteze (India) Limited (sic) would attract service tax. During the period of dispute, there was no provision for recovery of service tax from a foreign/offshore provider in case where any taxable service has been provided by a foreign/offshore service provider to a person in India. On the contrary, in terms of the provisions of Rule 2(1)(d)(iv) of Service Tax Rules, 1994 in such situation, it is the service recipient in India who is liable to pay service tax. Subsequently a Notification No. 36/2004-S.T. dated 31-12-2004 effective from 1-1-2005 was issued under Section 68(2) of the Finance Act, 1994 specifically making the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) against the Additional Commissioner s order, the Commissioner (Appeals) vide order-in-appeal dated 29-2-2008 set aside the Additional Commissioner s order on the ground that the service tax demand against the respondent has been confirmed under the provisions of Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994, while the service provider is a foreign company not having any office in India and the provisions of the Finance Act, 1994 or of the rules made thereunder cannot be extended beyond the Indian territories. Against this order of the Commissioner (Appeals), the department has come in appeal. 2. Heard both the sides. 3. Shri R.K. Gupta, ld. SDR assailed the impugned order by reiterating the grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical information for manufacture of certain product and permitting them to the use of their brand name within certain territory, have provided business franchise service and, therefore, the royalty charged by the appellant from M/s. Goeteze (India) Limited (sic) would attract service tax. 6. During the period of dispute, there was no provision for recovery of service tax from a foreign/offshore provider in case where any taxable service has been provided by a foreign/offshore service provider to a person in India. On the contrary, in terms of the provisions of Rule 2(1)(d)(iv) of Service Tax Rules, 1994 in such situation, it is the service recipient in India who is liable to pay service tax. Subsequently a Notification No. 36/2004- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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