TaxTMI 
TaxTMI 
2019 (9) TMI 1519
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..... 22,30,576/- along with interest and equivalent penalty on the ground that services provided outside India after 18.04.2006 were taxable under Section 66A of Finance Act, 1994 and the assessee being the service receiver was liable to discharge the service tax liability. The Assessee has filed an appeal against that portion of the order being Appeal No. ST/322/2010. 2. The department has filed Appeal No. ST/325/2010 against the demand of Rs. 36,24,311/- dropped by the Ld. Commissioner vide the impugned order on the ground that the service received from outside India prior to 18.04.2006 was also leviable to Service Tax. 3. Shri Deepro Sen, Ld. Advocate for the assessee submitted that with regard to the department appeal, the issue has alre....
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....paying the service tax provided the service was received in India. The entire case of the Petitioners is in relation to the service received by the vessels and ships owned by the members of the Petitioner-association outside India. Therefore, it cannot be said that on the basis of Rule 2(I)(d)(iv) service tax can be levied on the members of the Petitioners-association. It is further to be seen here that Section 64 gives powers to the Central Government to make rules for carrying out the provisions of the Chapter. The chapter relates to taxing the services which are provided, the taxing on the value of the service and it is only the person who is providing the service can be regarded as an assessee. The rules therefore, cannot be so framed a....
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....rson who is a resident of India or has business in India becomes liable to pay service tax when he receives service outside India from a person who is non-resident or is from outside India. Before enactment of Section 66A, it is apparent that there was authority vested by law in the Respondents to levy service tax on a person who is receding in India, but receives services outside India. In that case till Section 66A was enacted a person liable was the one who rendered the services. In other words, it is only after enactment of Section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of the India residents. In such cases, the Indian recipient of the taxable services is deemed to be a servi....
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....ed to uphold the decision of the Tribunal setting aside the demand of penalty on service tax paid on service tax paid on reverse charge on External Commercial Borrowings after intimation from the department. 7. The Ld. D.R. reiterated the findings in the impugned order. 8. We find that the issue relating to payment of tax on reverse charge on services received from outside India for the period post 18.04.2006 was a question of interpretation of law. We also see that the duty and interest were deposited on being pointed out by the department in 2007 much prior to the issuance of the Show Cause Notice. Further we find that the Hon'ble Madras High Court in CCE, Salem Vs. JSW Steels Limited 2017 (6) GSTL 397 (Mad.) has held as under:- "15. ....