Cce, Indore vs M/S.Sti Sanoh India Ltd
- CitationAppeal No.ST/943/2009-CU (DB)
Ratio decidendi
The rule this decision rests on
The reverse charge mechanism for service tax was not legally operative for the period before 18.4.2006, the date on which section 66A was inserted into the Finance Act, 1994. Accordingly, a demand under the reverse charge mechanism for services received from abroad cannot be sustained for any period prior to that date, the legal position being as laid down by the Bombay High Court in Indian National Shipowners Association v. Union of India, as upheld by the Supreme Court.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Hearing/Order: 09.07.2015
(Arising out of Order-in-Appeal No.IND-I/202/2009 dt.31.8.2009 passed by the CCE (Appeals), Indore)
Honble Mr.R.K.Singh, Member (Technical)
Honble Ms.Sulekha Beevi C.S., Member (Judicial)
1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? no 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? no 3. Whether their Lordships wish to see the fair copy of the order? seen 4. Whether order is to be circulated to the Department Authorities? yes
CCE, Indore Appellant
Vs.
M/s.STI Sanoh India Ltd. Respondent
Present for the Appellant: Shri Gobind Dixit, AR
Present for the Respondent: Shri A.jaju, Advocate
Coram: Honble Mr.R.K.Singh, Member (Technical)
Honble Ms.Sulekha Beevi C.S., Member (Judicial)
FINAL ORDER NO.52458/2015
PER: R.K.SINGH
Appeal has been filed against Order-in-Appeal dated 31.8.2009 in terms of which the service tax demand under reversed charged mechanism for IPR services received from abroad was confirmed.
2. Learned Advocate for the respondent argues that the period involved in the appeal is prior to 18.4.2006 and as per judgement of Bombay High Court in the case of Indian National Shipowners Association vs. Union of India-2009 (13) STR 235 (Bom.) it has been held that reversed charge mechanism was not legally available for collecting service tax prior to 18.4.2006 and the said judgment has been upheld by the Supreme Court [2010 (17) STR J-57 (SC)]
3. Learned DR does not counter the argument against the contention of the learned advocate for the appellant.
4. We have considered the matter. As has been held in the case of Indian National Shipowners Association (supra) the reverse charge mechanism became legally operational only with the insertion of section 66A in the Finance Act, 1994 on 18.4.2006. As the period involved in the case is prior to 18.4.2006, the appeal is devoid of any merit and is therefore dismissed.
(Dictated and Pronounced in the open court)
(SULEKHA BEEVI C.S.) (R.K.SINGH)
MEMBER (JUDICIAL) MEMBER (TECHNICAL)
mk
3
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free