2019 (1) TMI 1114

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....h are undisputed, and of law, which have been cited with casual disregard of their application to the facts. The show cause notice itself admits the discharge of tax liability under section 66A of Finance Act, 1994 on the payments made in connection with receipt of 'know-how' under contract with their parent organisation outside India while at the same time demanding tax, without reference to this discharge, all over again merely for want of the registration as provider of 'intellectual property services' incorporated in section 65(105)(zzr) in Finance Act, 1994. 2. It is also alleged, and held, that the tax liability, in transactions between associated entities, arises upon posting in books of accounts and is not in any way concerned wi....

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....2006 in consequence of the decision of the Hon'ble High Court of Bombay in Indian National Shipowners Association v. Union of India [2009 (13) STR 235 (Bom)]. 4. The tax liability devolves on the appellant, notwithstanding being the recipient of the service, not as 'person liable to tax' in Service Tax Rules, 1994 but as deemed provider; this coalescing of the provider and the recipient in the same person fictionally obliterates the existence of the overseas provider. Accordingly, it would be incorrect to read the provisions of Explanation in section 67 of Finance Act, 1994, effective from 10th May 2008, to apply in such instances of import of services to that which is relevant only for the valuation of the service. Accordingly, the disc....