2009 (8) TMI 45

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....HY, Technical Member Shri K.R. Natarajan, Adv., Shri R.J. Pillai, Consultant, for the appellant Shri V.V. Hariharan, JCDR, for the respondent [Order Per: Jyoti Balasundaram, Vice President]. - In this case service tax demand of Rs. 1,22,56,765/- together with interest has been confirmed against the assessees as a result of holding that they are liable to pay tax as recipient of Businesses....

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.... Union of India - 2008-TIOL-633-HC-MUM-ST that in the case of foreign service provider providing service outside India, liability to service tax arises w.e.f. 18.04.06. The decision of the High Court has been followed by the Hon'ble High Court of Delhi in the case of Unitech Ltd. - 2009 -TIOL-293-HC-DEL-ST. In the case of Anant Spinning Mills - 2009(14) STR 184 also it has been held that the l....

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....d in the provisions of Section 76, Section 77 or Section 78, no penalty shall be imposable on the assessees for any failure referred to in the said provisions if the assessees prove that there was reasonable cause for the said failure. According to them, they were in a bonafide belief based upon the service tax Circular No. 36/4/01 dated 08.10.01, that they were not liable to pay service tax. The ....

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....hat the services provided beyond the territorial waters of India are not liable to Service Tax as provisions of Service tax have not been extended to such areas so far. This circular led the field until 10.05.07, when it was withdrawn along with other circulars, by Circular No. 93/04/07-ST dated 10.05.07. Therefore the assessees submit that the penalties imposed under Section 76 & 78 should be ....