2010 (3) TMI 129

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... are engaged in production of ready-to eat-meals and clearing the same export under bond. The respondents were registered as deemed service provider under Section 68(2) of the Finance Act, 1994 under the category of 'Business Auxiliary Service'. A show cause was issued demanding service tax interest and penalty on the ground that the respondents has incurred Rs.40,66,127/- in foreign exchange towards advertising, publicity and promotion expenses for evaluation of prospective customers situated outside India to M/s. Utmost Foods LCC, Dubai and M/s. LEP International Pvt. Ltd. Australia during the period 2004-05 and 2005-06. The demand was made as service receiver under Rule 2(1)(d) (iv) of Service Tax Rules, 2004 as 'Business Auxiliary Servi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....axable service provided by the non-resident or from outside India, who does not have any office in India, having been specified as taxable service w.e.f.1.1.2005 under Notification No. 36/2004, recipient of such service could not be held liable for paying service tax prior to 1.1.05. Further in the case of M/s. Anant Spinning. Mills Vs. Commissioner of Central Excise, Bhopal reported in 2009 (14) S.T.R. 184 (Tri.-Del.). The Tribunal has held that in view of insertion of Section 66A of the Finance Act, 1994, offshore services cannot be subjected to Service Tax prior o 18.4. 2006. The Tribunal considered the Board Circular on the issue and extract of the same is reproduced here as under:- 6.8 We also noticed that there has been an amendmen....