Service tax on foreign commission agent services was not payable by the recipient before Section 66A came into force.

Service tax could not be demanded from the recipient of foreign-based commission agent services for the period before insertion of Section 66A of the Finance Act, 1994, because the relevant period preceded 18.04.2006 and the concurrent view below applied the binding law then prevailing. The departmental challenge disclosed no error in that view, so the demand was unsustainable.

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Issues: Whether service tax could be demanded from the recipient of foreign-based commission agent services for the period prior to insertion of Section 66A of the Finance Act, 1994.

Analysis: The period in dispute preceded 18.04.2006, when Section 66A was inserted. The authorities below had held, following the binding judicial view then prevailing, that the recipient was not liable to pay service tax for such period. The departmental appeal did not disclose any error in that concurrent view.

Conclusion: Service tax was not payable by the recipient for the period prior to 18.04.2006, and the demand could not be sustained.

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