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TMI Blog2018 (11) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... ad entered into agreement with different foreign companies having no office in India. These pertain to various contracts for setting up of the Petrochemical Refinery at Haldia, West Bengal. In terms of the these agreements, the assessee received services in connection with Project Management, Procurement, Supervision, Review, Approval, Consulting Engineering and Assistance including in Basic Engineering Design, Technical and Maintenance Service, Practical Training to the Licensee's Personnel and other related matters. The department was of the opinion that such services are classifiable under the category of 'Consulting Engineering Services' falling under Section 65(105)(g) of the Finance Act, 1994. In addition, the appellant also received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of unamortized amount of licence fee carried forward in the balance sheet. The adjudicating authority observed that such amount does not reflect any payment towards licence fee and hence dropped the demand. iv) The demand for Rs. 27.90 lakh was also dropped since this pertains to services received prior to 16.08.2002 i.e. before insertion of Rule 2(1)(d)(iv) ibid. 3. The assessee is in appeal against the amount of service tax confirmed by the adjudicating authority mainly on the following grounds: a) The liability of payment of service tax on Reverse Charge Basis can be confirmed only w.e.f. 18.04.2006, the date of enactment of Section 66A of the Finance Act, 1994. The Hon'ble Bombay High Court in the case of Indian National Shipo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002-2003 to 2006-2007 in respect of certain services received by the assessee from service providers situated abroad. Demand for service tax was raised and confirmed against the assessee under Reverse Charge Mechanism by taking recourse to the Rule 2(1)(d)(iv) of the Service Tax Rules, 1994. Subsequently, Finance Act, 1994 was amended and Section 66A was inserted w.e.f. 18.04.2006 making specific provision in the Act itself for payment of service tax on Reverse Charge Mechanism. The Hon'ble Bombay High Court and subsequently Hon'ble Supreme Court in the case of Indian National Shipowners Association vs. UOI (supra) have categorically held that service tax is liable to be paid on services received from abroad only after the date of enactment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch cenvat credit is admissible in view of the Explanation inserted in the Cenvat Credit Rules vide Notification No.2/2016-CE (NT) dated 03.02.2016. The Hon'ble Tribunal in the case of Essar Steel India Ltd. vs. CCE [2016(42) STR 869 (Tri.-Ahmd.)] has held that the Explanation inserted is clarificatory in nature and hence effective retrospectively. In view of the above Notification and the decision of the Tribunal (supra), we are of the view that the assessee will be entitled to avail the cenvat credit of Rs. 3,18,977/- as above. 10. In view of the above discussions we set aside the demand for service tax for the period prior to 18.04.2006 made on Reverse Charge basis as well as for reversal of cenvat credit. For the service tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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