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TMI Blog2018 (5) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... as not paying service tax on the above mentioned services being rendered to them by outside agencies, which was leviable as per Rule 2(1)(d)(iv) of the Service Tax Rules, 1994. The services fall under the category of Business Auxiliary Services as per show-cause notice under Section 65(19) of the Finance Act, 1994. A show-cause notice dated 20.11.2007 was issued demanding service tax of Rs. 9,97,388/- for the period from 1.7.2003 to 31.3.2007 on the commission paid on export sales payable and Rs. 1,07,458/- from 2004-05 to 2006-07 on the expenses incurred on sales promotion. The matter was adjudicated and the entire service tax demand of Rs. 11,04,846/- was confirmed along with interest. Since the appellant had themselves paid the demand of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Bombay High Court was affirmed by Hon'ble Supreme Court as reported in 2010 (17) STR J57 (SC). He also contended that for the period after 18.4.2006 when Section 66A was inserted by Finance Act, 2006, they had paid the service tax and interest on their own on 7.11.2007 before the issuance of show-cause notice; hence, equivalent penalty was not leviable on them as held by Hon'ble Karnataka High Court in the case of CST, Bangalore vs. C Ahead Info Technologies India Pvt. Ltd.: 2017 (47) STR 125 (Kar.). 4. Learned AR for the Revenue reiterated the submissions in the grounds of appeal filed by the Revenue and the findings of the learned Commissioner. 5. Heard both the sides and perused the records. 6. We find that the issue in both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he taxable service. Now, 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 service outside India from a person who is non-resident or is from outside India. Before enactment of Section 66A it is apparent that there was no authority vested by law in the Respondents to levy service tax on a person who is resident in India, but who receives services outside India. In that case till Section 66A was enacted a person liable was the one who rendered the services. In other words, it is only after enactment of Section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of the Indian residents. In suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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