Liability to pay service tax on commission paid to Foreign Service provider arises only with effect from 18.4.2006

On hearing both sides, we find that the issue in dispute is as to whether service tax liability arises on recipient of commission who resides outside India and has no office in India, for the period prior to 18.4.2006. The Apex Court has held that such liability arises only with effect from 18.4.2006 with the introduction of Section 66A of the Finance Act, 1944. The ratio of the Apex Court’s decision in Union of India Vs. Indian National Ship Owners’ Association– ( 2009-IST-07-SC-ST) covers the issue in this case and following the ratio thereof, we uphold the impugned order and r...