2019 (2) TMI 946

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....hat the appellant is engaged in the manufacture of industrial fans and allied products. The appellant made foreign remittances outside India for availing certain services for use in their manufacturing business. Show Cause Notice dated 04.07.2007 was issued proposing demand of service tax under reverse charge for foreign remittances under various categories viz., Intellectual Property Services, Management Consultancy Services, etc. as per the figures appearing in the audited Financial Statements for the period 01.01.2004 to 31.12.2004 and under Goods Transport Agency Services for the period 01.01.2005 to 31.12.2006 alongwith interest and penalty. 3. In the course of adjudication, the appellant submitted that the demand was raised on the ....

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....ficate, since the liability to pay service tax under reverse charge arises only when the payment is made to the service provider as was the law applicable during the relevant period. It has been further submitted on behalf of the assessee that the Ld. Commissioner has confirmed the demand for the period from 2003 to 2006 ignoring the settled law that no service tax is payable for the period prior to 18.04.2006 as held by the Hon'ble Supreme Court in UOI vs. Indian National Ship Owners Association reported in 2010 (17) STR J57 (SC). It was also submitted that no remittance has been made in 2006 for services availed in the above taxable period, except Rs. 12,43,109 towards Networking Charges on which service tax of Rs. 1,23,731/- has already ....

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.... already been paid by them during adjudication. The adjudicating authority would accordingly re-compute the final service tax liability for the aforesaid period. 8. In so far as the appeal filed by Revenue is concerned regarding the portion of demand dropped by Ld. Commissioner, the only ground taken by the Revenue is that Explanation 3 to Section 67 of the Finance Act, 1994 regarding valuation of taxable service is that the gross amount charged for taxable service shall include any amount received towards the taxable services before, during or after provision of such service. He therefore submits that even if the remittance is made after the period in dispute (2003 to 2006), the tax is payable. He did not dispute the fact that remittanc....