Tax not leviable on recipient as foreign service provider had permanent establishment in India: CESTAT Ahmedabad

Kiran Gems Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad) CESTAT Ahmedabad held that when a permanent establishment of the foreign service provider exists in India the recipient of service in India cannot be made liable to pay service tax under reverse charge mechanism. Facts- The Appellants are engaged in the business of importing rough diamonds and exporting them only after cutting and polishing for which they require diamond processing machines that run on a specific type of software – HASP. All activities including marketing & promotion, being the sole point of interaction, placing ...