Cce, Ludhiana vs M/S. Sharma Exports
- Case No.Appeal No. ST/998/2009 (DB)
Ratio decidendi
The rule this decision rests on
Service tax on services imported from an overseas provider was not leviable under the reverse charge mechanism before 18.4.2006, when section 66A was introduced into the Finance Act, 1994; accordingly, a demand for such tax for the period before that date cannot be sustained. Where the question stands settled by a decision of the Supreme Court, the matter is not open for fresh determination by the Tribunal, and a demand that fails on the merits cannot found the imposition of penalty under sections 76, 77 and 78 of the Finance Act, 1994.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of OIA No.188/CE/LDH/2009 dt.16.09.09 passed by Commissioner of Central Excise (Appeals), Chandigarh)
CCE, Ludhiana Appellants
Vs.
M/s. Sharma Exports Respondent
Appearance:
Appellant: Shri Yash Pal Sharma, AR
Respondent: Shri Ravi Chopra, Advocate
HonbleMr.P.K.Das, Member (Judicial)
HonbleMr.P.S.Pruthi, Member (Technical)
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
Coram:Honble Mr.P.K.Das, Member (Judicial)
HonbleMr.P.S.Pruthi, Member(Technical)
Date of Hearing/decision: 21.01.2015
FINAL ORDER NO.50747/2015
PER: P.S.PRUTHI
The Revenue is in appeal against the impugned Order-n-Appeal in which the Commissioner (Appeals) held that the service tax is not payable on the services provided by overseas agent to the respondent prior to 18.4.2006 when the section 66A was introduced in the Finance Act.
2. Revenues appeal is on the ground that the service tax was leviale even prior to 18.4.2006 and accordingly the penalties are imposable under section 76, 77 and 78 of the Finance Act, 1994.
3. We find that the issue in this case is no more res-integra and it stands settled by the decision of the Apex Court in the case of Indian National Shipowners Association vs. Union of India holding that service tax on import of service is leviable on reverse charge mechanism only from the date of 18.4.2006 after enactment of section 66A of Finance Act, 1994. The demand being not sustainable, the question of penalty does not arise.
4. Accordingly the appeal is rejected.
(Pronounced in the court)
(P.S.PRUTHI) (P.K.DAS)
MEMBER (TECHNICAL) MEMBER(JUDICIAL)
mk
1
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