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 reject the appeal of the Revenue.
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, CHENNAI
ST/EH/77/2010 and ST/76/2009
Arising out of Order-in-Appeal No.91/2008 (M-III) ST Dated: 28.10.2008
Date of Decision: 06.12.2010
CCE, CHENNAI
Vs
M/s BBK LEATHER PVT. LTD.
MISC ORDER NO. 492/2010
FINAL ORDER NO. 1232/2010
ORDER
Per: Jyoti Balasundaram:
The application for early hearing of the above appeal is allowed as the issue stands settled by the decision of the Apex Court. We take up the appeal itself for hearing now as the issue stands covered.
2. 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 covers the issue in this case and following the ratio thereof, we uphold the impugned order and reject the appeal of the Revenue.
(Dictated and pronounced in open court)
