2019 (4) TMI 1266

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....ellant makes remittances to foreign entities for procuring various services and also for the purpose of subscription of publications for use in the business. The present dispute covers the period from October, 2001 to November, 2006. During the above period, the appellant received Management Consultancy Services, Consulting Engineering Services and Business Auxiliary Services from persons located outside India and made payment to them in foreign currencies. After investigation into the issue, the Department found that the appellant is liable to payment of service tax on reverse charge basis for the services procured from outside India. Accordingly, show-cause notice dated 24.04.2007 was issued proposing the demand of service tax in terms of....

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....ds decided that the charge of service tax on the recipient of service is payable only after introduction of Section 66A of the Finance Act, 1994 w.e.f. 18.04.2006. Accordingly, the ld. C.A. submitted that the liability of service tax ordered in the impugned order for the period upto 17.04.2006, is liable to be set aside. (ii) The ld. C.A. further submitted that out of the service tax liability arising for the period 18.04.2006 to November, 2006, the appellant has already discharged the service tax liability amounting to Rs. 2,19,13,007/- along with applicable interest even prior to issue of the show-cause notice. As such, he submitted that no penalty will be liable on this portion. (iii) Out of the balance amount of Rs. 4,74,345/-, he....

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....e tax on reverse charge basis on the services procured from abroad. In the terms of the settled law on the subject (supra), no service tax can be demanded for the period upto 17.04.2006. Consequently, we set aside the demand for service tax for services procured up to 17.04.2006. 8. Next we turn to the demand for service tax for the period 18.04.2006 to November, 2006, the appellant has admitted the liability for service tax to the extent of Rs,2,19,13,007/-, which has already been paid along with applicable interest before issue of showcause notice. We uphold the payment of service tax along with interest, but set aside the proportionate penalty under Section 80 of the Finance Act, 1994. 9. ut of the remaining service tax demand of R....