Imported service tax liability begins only from 1-1-2005, so earlier foreign technical assistance was not taxable.

Service tax on technical know-how and assistance received from a foreign collaborator was held not to apply to the recipient for the period before 1-1-2005, because liability for services provided from outside India arose only from that date under Notification No. 36/2004-Service Tax. The foreign-service recipient could therefore not be fastened with tax for services received during 1-4-2002 to 31-3-2003. The operative result was that pre-1-1-2005 imported services were outside the recipient's service tax liability.

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Issues: Whether the appellant was liable to pay service tax on technical know-how and assistance received from a foreign collaborator for the period 1-4-2002 to 31-3-2003.

Analysis: The liability of a recipient in India for services provided from outside India was held to arise only from 1-1-2005 pursuant to Notification No. 36/2004-Service Tax dated 31-12-2004. Since the services in question were received before that date, the recipient could not be fastened with service tax for the earlier period.

Conclusion: The appellant was not liable to pay service tax on the services received from the foreign collaborator prior to 1-1-2005.

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