President grants name change to M/s DSM Sinochem Pharmaceuticals India Pvt Ltd & allows appeal challenging tax liability under reverse charge mechanism.

The President allowed the change of name application to M/s DSM Sinochem Pharmaceuticals India Private Limited and granted the early hearing of the appeal. The appeal challenged an adjudication order imposing liability under the reverse charge mechanism for commission payments to overseas agents. Citing the Supreme Court ruling, the judgment deemed the tax, interest, and penalty unsustainable due to the introduction of Section 66A in the Finance Act, 1994. Consequently, the appeal was allowed, the impugned order set aside, and no costs awarded.

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Issues: Change of name application, early hearing of appeal, liability under reverse charge mechanism, applicability of service tax, quashing of adjudication order

The judgment addresses an application seeking a change of name of the appellant to M/s DSM Sinochem Pharmaceuticals India Private Limited. The President directs the alteration of the appellant's name as requested. Additionally, the application for early hearing of the appeal is granted. The appeal challenges the appellate order of the Commissioner (Appeals) dated 12.2.2009, which upheld the adjudication order passed by the Assistant Commissioner, Central Excise Division, Phagawara, Punjab. The adjudication order imposed a liability of &8377; 3,94,020/-, along with interest and penalties under the reverse charge mechanism, based on commission payments made to overseas agents for export sales between July 9, 2004, and March 31, 2006.

The judgment refers to the Supreme Court's ruling in Indian National Shipowners Association vs. UOI, which established that a service recipient in India is liable to pay service tax for services received from abroad only from 18.4.2006, following the introduction of Section 66A in the Finance Act, 1994. In light of this legal precedent, the tax, interest, and penalty imposed by the primary authority and confirmed by the Commissioner (Appeals) are deemed unsustainable. The Revenue's legal representative does not contest this position. Consequently, the appeal is allowed, and the impugned order confirming the adjudication order is set aside. No costs are awarded in this matter.

In summary, the judgment primarily deals with a change of name application, the appeal against an adjudication order regarding liability under the reverse charge mechanism, the applicability of service tax based on legal precedence, and the subsequent quashing of the adjudication order due to the change in legal interpretation. The decision provides clarity on the tax liability for services received from abroad and ensures the appropriate application of the law in the case at hand.

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