TaxTMI 
TaxTMI 
2009 (6) TMI 480
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....ng technical assistance by deputing highly qualified specialists. The said service rendered by the appellant in terms of agreement fall under the category of 'Consulting Engineer'. As the appellants had not taken the registration certificate and not paid the Service Tax liabilities on the above services provided to M/s. Jindal Vijaynagar Steel a show-cause notice was issued demanding the Service Tax of Rs. 9,75,261 with interest and with penal provisions. The adjudicating authority vide the impugned order confirmed the demand of Service Tax of Rs. 9,75,261 with interest and imposed a penalty of Rs. 500 under section 75A and Rs. 1,000 under section 77 of the Finance Act, 1994. Aggrieved by the said Order-in-original, appellant preferred an a....
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....es which are rendered by the appellant will fall beyond the scope of Service Tax. He would submit that the appellant did not have any office in India, hence, the services rendered by him can be at the most, charged at the hands of the recipient of the services i.e., JVSL in this case. It is his submission that even that cannot be done by the revenue today as the provisions of section 66A for charging recipient of the services from the persons who are situated abroad, was brought into force only from 18-4-2006 and the period involved in this appeal is April, 1999 to March, 2000. For this proposition, he would rely upon the decision of the Hon'ble High Court of Bombay in the case of Indian National Shipowners Association v. UOI [2009] 18 STT ....
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....ntries for the experts and their families. 2.1.3 Covering/meeting all expenses, duties, and taxes and other payments to be made as per Russian laws during execution of the contract in Russian Federation. 2.1.4 Solution of all other matters related to execution of the contract in the Russian Federation." 7. It can be noticed from the above reproduced article from the agreement/contract that the main obligation of the appellant was for selection of suitable specialists for deputation to India. On the perusal of the contract, it is seen that it is a tri-partite contract between the appellant, one Tyazhprom (India) Ltd. ('TPI') and JVSL. The main obligation of TPI was to interact with JVSL and other issues arising in the course of impl....
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....ovisions of service tax have not been extended to such areas so far. Trade and field formations may be advised accordingly. Receipt of this Circular may please be acknowledged. Hindi version will follow." 8. On a plain reading of the above reproduced circular, it can be seen that the services rendered beyond the territorial waters of India are not liable to Service Tax as the provisions of Service Tax have not been extended to such areas so far. This would indicate that even if it is held for argument sake that appellant, had at the most, recruited persons for JVSL for rendering services in India on deputation, but by the said Board's Circular dated 8-10-2001, even this category of services, even if it is considered as a taxable servi....
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....aking a provision in the Rules, levy of tax cannot be shifted to the recipients of the services and the Rule framed which brought about this situation has been declared by the Supreme Court to be invalid. The law laid down by the Supreme Court in its judgment in Laghu Udyog (supra) is squarely applicable to rule 2(1)(d)(iv), which is relied on in this case. It appears that it is first time when the Act was amended and section 66A was inserted by Finance Act, 2006 with effect from 18-4-2006, the Respondents got legal authority to levy service tax on the recipients of the taxable service. Now, because of the enactment of section 66A, a person who is resident in India or business in India becomes liable to be levied service tax when he receive....