2017 (3) TMI 1456

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....lways, whose objective is to raise money from the market to part finance the plant outlay of Indian Railways. In order to finance the capital expenditure with respect to expansion, development and modernization of Indian Railways, IRFC borrows money from the market through taxable and tax free bonds, term loans from banks/ financial institutions and through offshore borrowings also. For the purpose of raising such capital, they have received the services of non-resident institutions i.e. a person who has established a business or has a fixed establishment in a country other than India. M/s. IRFC were neither registered with service tax authority nor paid any service tax on the services received by them from non-resident financial organizati....

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....s that recipient in India became liable to service tax for the service received from abroad only from 18.04.2006, after the enactment of Section 66A. The Hon'ble Bombay High Court in the case of Indian National Shipowners Association vs. UOI - 2009 (13) STR 235 (Bom.), observed as under:- "20. It appears that a similar provision in the rules was made applicable by the Government in relation to the Clearing Agents by making customers of the Clearing Agent liable for levy of the service tax. That question has been decided by the Supreme Court by its judgment in the case of Laghu Udyog Bharati (supra) and the Supreme Court has clearly laid down that the imposition of the service tax is on the persons rendering the services and by making a....