A recent decision of the Mumbai High Court in Indian National Shipowners Association Vs. Union of India (2009 -TMI - 32013 - HIGH COURT OF BOMBAY dated 12-11-2008) has resolved a dispute regarding the charge of service tax on import of services into India.

The Mumbai High Court has held that taxation of imports of services was legally permissible only after the introduction of Section 66 A of the Finance Act 1994 (the Act) with effect from April 18, 2006, and not for any period prior to that date.

For full text of judgment visit: 2009 - TMI - 32013 - HIGH COURT OF BOMBAY

Taxation of imported services: service tax applies only from commencement of the statutory charging provision, not earlier. The Mumbai High Court determined that imposition of service tax on imports of services was legally tenable only from the date the statutory charging provision came into force; imports prior to that commencement were outside the service tax net and lacked statutory basis.