M/S.Mando India Ltd vs Commissioner Of Service Tax, Chennai
- CitationAppeal No. 4/2005
Ratio decidendi
The rule this decision rests on
Service tax under the reverse charge mechanism on the recipient of services is applicable only with effect from 18.4.2006, and a demand for the period prior to that date cannot be sustained, following the Supreme Court's decision in Union of India v. Indian National Shipowners Association.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of Order-in-Appeal No. 4/2005 (M-ST) dated 25.1.2005 passed by the Commissioner of Central Excise, (Appeals), Chennai)
M/s.Mando India Ltd. Appellant
Vs.
Commissioner of Service Tax, Chennai Respondent
Appearance
Shri S. Rahul, Chartered Accountant for the Appellant Shri R. Subramaniyan, AC (AR) for the Respondent
CORAM
Honble Shri R. Periasami, Technical Member Honble Shri P. K. Choudhary, Judicial Member
Date of Hearing / Decision: 22.06.2015
Final Order No. 40759/2015
Per P.K. Choudhary
The dispute in the present appeal relates to demand of service tax of Rs.20,50,889/- on the point whether the services rendered by overseas service provider M/s. Mando Machinery Corporation, Korea, on technical know-how and royalty to a service recipient in India is taxable or not. The period involved in the present appeal is from May 2000 to December 2002. The demand has been made under Consulting Engineering Service under reverse charge mechanism. Commissioner (Appeals) has upheld the order of the adjudicating authority.
2. After hearing both sides and on perusal of the records, we find that the issue already stands settled by the decision of the Honble Supreme Court in the case of Union of India Vs. Indian National Shipowners Association Ltd. 2010 (17) STR 357 (SC) which has also been confirmed by CBEC vide F.No.276/8/2009-CX 8A, dated 26.9.2011 wherein service tax under reverse charge on the recipient is applicable only with effect from 18.4.2006. The present demand being prior to 18.4.2006 i.e. from May 2000 to December 2002, respectfully following the decision of the Honble Supreme Court in the case of Indian National Shipowners Association (supra), we set aside the impugned order and allow the appeal.
(Operative portion of the order was pronounced in open court on 22.6.2015)
(P.K. CHOUDHARY) (R. PERIASAMI) Judicial Member Tehnical Member
Rex
2
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