Service tax not applicable on consulting engineering services from Russia under reverse charge mechanism

CESTAT Allahabad allowed the appeal regarding service tax levy under reverse charge mechanism for services obtained from Russia categorized as Consulting Engineering Services. The tribunal set aside the impugned order, following its earlier precedent in a case involving the same assessee where it held that such services do not attract service tax under the 'Consulting Engineering Services' heading on reverse charge basis. Both parties agreed to this established position, resulting in the appeal being allowed and the original order being overturned.

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The Appellate Tribunal (CESTAT Allahabad) disposed of two appeals by a common order concerning the demand of service tax on services received from Russia under the category of 'Consulting Engineering Services' on a reverse charge basis. The Tribunal noted that in a prior decision (Final Order No.71843/2018 dated 12.07.2017) involving the same assessee, it was held that such services "do not attract service tax under the heading 'Consulting Engineering Services' on reverse charge basis." Applying this precedent, the Tribunal set aside the impugned orders and allowed both appeals, granting consequential relief to the appellant.

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