TaxTMI 
TaxTMI 
2015 (1) TMI 546
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....g Engineer's Services as defined under Section 65(105)(g) of the Finance Act, 1994 from the service provider, who is located outside India Service Tax was payable on such services received by the appellant as service receiver on reverse charge basis under Section 66A of the Finance Act, 1994. The appellant in its understanding that the said service is not taxable being received from outside India did not pay Service Tax, but the expenditure was shown in books of account. In the final accounts, the said expenditure was shown as incurred in foreign currency during the period 2007-08 and 2008-09. On query from the Revenue, the appellant informed that it had paid the amount being consultancy fee to one Dr. Er. Marco Ugazio of Italy for desi....
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....ppellant as the appellant had disclosed the services received in its books of account, further classified expenditure in foreign currency. Further, records of appellant were subjected to audit by the Revenue in February, 2008 and again in May, 2010 wherein no objection was made. It was further stated that the Commissioner (Appeals) has erred in holding that from the periodical returns of the appellant in Form No. ER-1 and ST-3, the Revenue cannot visualize that the appellant has paid the value of Consulting Engineer's Services to the service provider in foreign currency and hence, the charge of suppression stands fastened against the appellant particularly in view of the era of self-assessment and self-compliance of law. Further, audit ....
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....posed. It is further stated that taxation on reverse charge basis was under litigation and the law was settled only sometime in year 2008 pursuant to the decision of the Hon'ble Bombay High Court in the case of Indian National Shipowners' Association, which was subsequently confirmed by the Hon'ble Supreme Court. Thus, he further urged that the situation is revenue neutral as the appellant was entitled to take credit of the tax deposited and utilized the same for clearance of the goods manufactured by it. Reliance is also placed on the ruling of this Tribunal in the case of Essar Steel Ltd. vs. Commissioner of Central Excise, Surat-I - 2009 (13) STR 579 (Tri-Ahmd), wherein the Division Bench of this tribunal in similar facts and....