TaxTMI 
TaxTMI 
2014 (1) TMI 1512
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....ch royalty per annum was being paid @ 2.5% on the annual sales turnover. The intellectual property rights service became taxable in the year 2004. Since, the appellant were not paying service tax on the royalty amount being paid by them to their foreign collaborator whose technology was being used for manufacture of PHPG under licence, two show cause notices dated 07/1/08 and 11/3/08 were issued to them for payment of service tax amounting to Rs. 14,98,776/- alongwith interest for the period from October 2004 to December 2007 and also for imposition of penalty. The above show cause notices were adjudicated by the Additional Commissioner vide order-in-original dated 26/02/09 by which she confirmed the above-mentioned service tax demand along....
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....provisions in this regard had been introduced w.e.f. 18/4/06 by introducing Section 66A and that in view of judgment of Hon'ble Bombay High court in the case of Indian National Shipowners Association vs. Union of India reported in 2009 (13) S.T.R. 235 (Bom.), during the period prior to 18/04/06, service tax could not be charged from the service recipient in India in respect of the service provided to them by off-shore service providers, that in spite of this, the appellant paid the service tax for the entire period including the period prior to 18/4/06 alongwith interest thereon, that the entire amount of service tax paid by the appellant was available to them as Cenvat credit, and, hence, there could not be any intention on their part to e....