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TMI BlogThe case of M/s. Indian National Shipowners Association Vs. Union of India & others - Regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... son who is resident in India, but who receives service outside India [2009 (13) S.T.R. 235 (Bom.)]. Section 66A was enacted on 18-4-2006. Accordingly, the Hon ble High Court quashed the levy of service tax, for the period prior to 18-4-2006, on services received outside India by the vessels and ships for the member of INSA, from persons who are non-resident. The SLP No. 18932/2009 filed by UOI against the said judgment has been dismissed by the Hon ble Supreme Court vide order dated 14-12-2009 [2009 (17) S.T.R. J57 (S.C.) ]. The order of Hon ble Supreme Court has been accepted by the Department. The implication would thus be that service tax levy on taxable services received outside India, i.e. beyond the designated areas in the Continen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issed by the Hon ble Supreme Court and these orders have been accepted by department. Therefore, in view of these judgments, levy of service tax on taxable services received in India which are provided by a non-resident, not having office/establishment in India arises on reverse charge basis w.e.f. 1-1-2005. 3. In view of the above the accepted position is that, (i) in case of taxable service provided by a non-resident, not having office/establishment in India, and received in India, the service tax liability arises w.e.f. 1-1-2005, on reverse charge basis on the recipient of service in India. Therefore, the overall facts and circumstances of each case needs to be taken into account to determine whether service is received in India or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing any office in India, arises on reverse charge basis, w.e.f. 1-1-2005 as has been upheld by the Apex Court in the cases M/s. Hindustan Zinc Ltd. and M/s. Aditya Cement Ltd., distinguishing such cases on facts from the INSA case. However, levy of service tax in respect of cases where service is received outside India would follow the ratio in the aforementioned case of M/s. INSA v. UOI. 5. Accordingly, it may be critically examined in pending disputes as to whether the service was received in India or outside India and appropriate action may please be taken for resolution of such disputes. [F. No. 275/7/2010-CX.8A] - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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