Service Tax Demand Set Aside as Overseas Branch Cannot Provide Service to Itself

Steel Authority of India Limited Vs Commissioner of Service Tax (CESTAT Delhi) The appeal before the CESTAT Delhi concerned the levy of service tax on activities carried out by the overseas representative office of the appellant located in Beijing, China. The department had alleged that the representative office provided “Business Support Services” to the appellant in India and that such services, being imported, were taxable under Section 66A of the Finance Act, 1994 on a reverse charge basis. Show cause notices were issued demanding service tax along with interest and penalties, which we...