2009 (2) TMI 130

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ad received taxable "Intellectual Property Service", as defined under section 65(55b) read with section 65(55a) of the Finance Act, 1994 and taxable under section 65(105)(zzr) of the Act, from an Offshore Foreign Service Provider M/s. Alstom Holdings Treasury, Paris, France, has- (a) Confirmed the service tax demand of Rs. 49,20,480 along with interest on it at the applicable rate for the period from October, 2004 to March, 2005 against the appellant and has ordered appropriation of the amount of Rs. 49,20,480 plus Rs. 1,66,490 paid by the appellant prior to the issue of the SCN, towards the above-mentioned demand of service tax and interest; and (b) Imposed penalty of Rs. 100 per day under section 76 of the Act ibid from the date on whic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ice receiver in India who would be liable to pay the service tax, that it is not under dispute that as soon as the department pointed out, the appellant discharged entire service tax liability along with interest even before the issue of the show-cause notice, that in view of these circumstances, the provisions of sub-section (3) of section 73, which had come into effect with effect from 10-9-2004 would become applicable and in view of this no show-cause notice should have been issued and that in view of the above, no penalty should have been imposed on the appellant. 2.2 Shri A.K. Madaan, ld. DR defending the impugned order pleaded that since the service tax for the period from October, 2004 to March, 2005 was not paid by the due date, th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... point of dispute is as to whether in these circumstances the appellant were liable for penalty under sections 76, 77 and 78 of the Act. We find merit in the appellant's argument that during the period of dispute there was confusion in the industry regarding the liability for payment of service tax, when the taxable service is received by a person in India from an Offshore Service Provider not having any office or establishment in India. This matter was finally reserved only recently by a Larger Bench Judgment of the Tribunal in the case of Hindustan Zinc Ltd. (supra) wherein it was held that the service tax liability could be fastened on a service receiver in India in respect of taxable service received by him from an Offshore Service ....