9911796707
TMI Blog2008 (4) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... dha Terry Products Ltd. are against demand of service tax in the category of "Business Auxiliary Service" for the period 9-7-2004 to 31-3-2006. In the former case, the services were provided by companies situate abroad. These services were in the nature of "Management Consultancy", for which the appellants paid fee to the foreign companies. In latter case, the services in question were rendered by certain companies situate abroad, who were authorized by the appellants as their agents to market their products in foreign countries. For these services, the appellants paid commission. In either case, the demand is on the gross amount paid by the appellants to the foreign companies. The appellants are also challenging the penalties imposed on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Where any service specified in clause (105) of section 65 is, - (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be the taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply : Provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax under Rule 2(1) (d) (iv) right from 16-8-2002. This claim of the Revenue is contested by counsel by submitting that the various amendments brought to the Service Tax Rules or to the Finance Act, 1994 from time to time up to 18-4-2006 were only in relation to taxable service provided in India by a non-resident person. It is submitted that, when such a person leaves the country after rendering the service in India, the difficulty encountered by the Revenue in the matter of collecting service tax from him is sought to be addressed by such amendments. It is submitted that, in the present cases, the services were provided outside India by persons (corporate entities) stationed outside India, who have no office in India. Such persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an resident from abroad. It appears from the arguments put forth before us by both the sides that opinion is divided on this question. 3. We are further of the view that, in the present cases, it has also to be examined as to whether any taxable service provided by a person resident abroad without any office in India can be considered to have been received abroad or in India by a person resident in India. It appears that a distinction is sought to be made between the expressions "providing of service" and "rendering of service". It appears to us that a person resident in India pays for a service provided by a person resident abroad, upon receipt of such service in India. Such transaction involves receipt of service in India unless it is pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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