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TMI Blog2014 (10) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... e statute had provided no mechanism for recovery of payment from entities outside India. Rule 2(1)(d)(iv) was challenged before the Bombay High in the Case of Indian National Shipowners Association Vs. Union of India, [2008 (12) TMI 41 - BOMBAY HIGH COURT] and the said rule was declared ultra vires. The Hon'ble Supreme Court in the S.L.P., uphold the order of the Bombay High Court in the case of Union of India Vs. Indian National Shipowners Association, [2009 (12) TMI 850 - SUPREME COURT OF INDIA]. Thus, the said verdict has attained finality. In other words, the said rule was declared as ultra vires. Thereafter, the Department has also issued a Circular No.276/8/2009-Cx dated 26.9.2011 by stating that service received from non-resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent appeals. 4. With this background, we have heard Sri Siddharth Shukla, learned counsel for the appellant and Sri Aditya Bhattacharya along-with Sri Nishant Mishra, learned counsel for the respondent. 5. From the record, it appears that as per Section 68 of the of Finance Act, 1994, the Service Tax is liable and to be paid by the person who is providing taxable service. But the legislature has made an exception in the case of service provided by entities out side India. In such cases by virtue of Section 66A of the Act, the service recipient will have to pay service tax. Section 66A of the Act was introduced by the legislature vide Finance Act, 2006, with effect from 18.4.2006. Prior to Section 66A, the statute had provided no mech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onverted into Rule 2(1)(d)(iv) of the Service Tax Rules, 1994. The Rule 2(1)(d)(iv) speaks that:- RULE 2(1)............ (a)........................ (b)........................ (c)......................... (d). person liable for paying the service tax means,- (iv)in relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving the taxable service India. 8. The said Rule 2(1)(d)(iv) was challenged before the Bombay High in the Case of Indian National Shipowners Association Vs. Union of India, 2009 (13) STR 235 (Bom.) and the said rule was declared ultra vires. The Hon'ble Supreme Court in the S.L.P., uphold the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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