2010 (10) TMI 968

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.... rendering the services of market research and promotion of the products in foreign countries. Revenue authorities were of the view that the recipient of the commission/amount being non-resident of India, the respondent is liable to discharge the service tax liability as the recipient of the services as per the provisions of rule 2(1)(d)(iv) of the Service Tax Rules, 1994. Coming to such conclusion, a show-cause notice was issued and after following the principles of natural justice, the adjudicating authority confirmed the demand and also imposed penalties and sought interest. Aggrieved by such an order, the respondents herein preferred an appeal before the learned Commissioner (Appeals). The learned Commissioner (Appeals), after consideri....

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....d brand positioning development, new product development research, corporate image, diagnostic market research, customer research, etc. 14. As per rule 2(1)(d)(iv), Service Tax Rules, 1994 (with effect from August 16, 2002), "person liable for paying service tax" means, "in relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India". 15. The definition of "person liable for paying service tax" is substituted under the said sub-rule with effect from June 16, 2005 with "in relation to any taxable service provided or to be provided by a person, who has established a business or has a fi....

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....t; for their products proposed to be exported and made payments in that context to foreign consultants/agents clearly evidencing that the services were provided from outside India and received in India. 20. The honourable Tribunal in the case of Commissioner of C. Ex., Dibrugarh v. Oil & Natural Gas Corpn. Ltd. [2007] 7 STR 533 (Tri.-Kolkata) held that "according to the mandate of the rule, if it is found that the service provider was from a country other than India but the service recipient was in India, the recipient was liable to discharge service tax liability." 21. As per statute, where services are provided by a service provider who is situated outside India to the recipient of such service who is based in India, such serv....

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....235 (Bom) and submit that this judgment was followed in the following cases: (a) Commissioner, Central Excise, Commissionerate, Ludhiana v. Bhandari Hosiery Exports Ltd. [2010] 32 VST 347 (P&H); [2010] 4 GSTR 305 (P&H). (b) Commissioner of Service Tax, Bangalore v. SKF India Ltd. [2010] 32 VST 447 (Karn); [2010] 4 GSTR 268 (Karn). (c) Commissioner of Service Tax, Bangalore v. Araco Corporation [2010] 32 VST 450 (Karn). He would submit that all the above cited judgments have taken a clear view that the recipient of the services from the person who is situated abroad can be taxed from April 18, 2006. We have considered the submissions made by both sides and perused the records. The undisputed facts that during the relevant period, the Re....