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TMI Blog2018 (2) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... everse charge mechanism. Matter remanded for verification of documents - appeal allowed by way of remand. - ST/21744/2016-SM - Final Order No. 20046 / 2018 - Dated:- 11-1-2018 - Hon'ble Shri S.S Garg, Judicial Member Shri S. Sivakumar, Advocate For the Appellant Shri Parasivamurthy, Deputy Commissioner (AR) For the Respondent ORDER Per : S. S. Garg The present appeal is directed against the impugned order dated 28.09.2016 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has dismissed the appeal of the appellant. Briefly the facts of the present case are that the appellant is a business entity with nil turnover. Due to ignorance of law, the appellant had paid service tax on Inward Legal Services rendered by the advocates for the period March 2012 to March 2013 under reverse chare mechanism. The appellant filed a refund claim on 10.07.2014 seeking refund of ₹ 8,47,972/- (Rupees Eight Lakhs Forty Seven Thousand Nine Hundred and Seventy Two only) on the grounds that during March 2012 to March 2013, they have paid service tax under reverse charge mechanism specified vide Notification No. 30/2012-ST dated 20.06.2012, by a mist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, Sub-section (1) and (2) of Section 68 casts the responsibility to pay service tax on the service provider and service recipient respectively. He further submitted that once an activity is exempted under Section 66B, there can be no tax that can be fastened on the service recipient under reverse charge mechanism under Section 68(2) of the Finance Act. He also submitted that the service tax on services rendered by advocates and received by small entities with turnover of less than ₹ 10 lakhs is exempted under Sl. No. 6 of the Mega Exemption Notification No. 25/2012 ST dated June 20, 2012. He also submitted that the appellant has already submitted a CA certificate and has also submitted their financial statement for the relevant period confirming that their turnover was nil during the relevant period and this fact is not disputed by the Department. He also submitted that the Commissioner (Appeals) has gone on the basis of Notification 33/2012 ST dated 20.06.2012 dealing with threshold limit exemption for service provider which has no relevance to the present case whereas the appellant being the recipient of advocate services is squarely covered by Sl. No. 6 of Notification 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted from the whole of the Service Tax leviable thereon under Section 66B of the Finance Act. Similarly, services provided by an individual as an advocate or a partnership firm of advocates by way of legal services to an advocate or partnership firm of advocates, to any person other than a business entity or a business entity with a turnover up to ₹ 10 lakhs in the preceding financial year and services provided by a person represented to an Arbitral Tribunal were exempted. This exemption takes care of apprehension of Mr. Thacker that services provided by individual advocates or a firm of advocates to small time traders or businessmen would be taxable. Now, the services provided by individuals as an advocate or a partnership firm of advocates by way of legal services to any person other than a business entity or a business entity with a turnover up to ₹ 10 lakhs in the preceding financial year are exempt from the whole of the Service Tax leviable thereon under Section 66B of the Finance Act. Therefore, the small businessman, petty traders and persons carrying on business in individual capacity would be able to afford the services of individual advocates or a partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Arbitration, that is a reference of any particular dispute by consent of the parties to one or more persons chosen by the parties with or without an umpire and an award enforceable by the sovereign power were generally unknown to ancient India. Hindus recognised decisions of Panchayats or bodies consisting of wealthy, influential and elderly men of the community and entrusted them with the power of management of their religious and social functions. The sanction against disobedience to their decision was excommunication, or ostracism and exclusion from the religions and social functions of the community. An agreement to abide by the decision of a Panchayat and its decision with regard to the line of boundary was held not to be conclusive, since a reference to arbitration and award properly so-called did not exist. See the observations in Mukkuduns of Kimkunwady v. Inamdar Brahmins of Soorpal, (1841-46) 3 Moo Ind App 383. See also Bachawat s Law of Arbitration at page 1. 7. When power came to the East India Company, they framed Regulations in exercise of the power vested in them by the British Government. Some of these Regulations were touching arbitration. Bachawat gives descr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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