COMMR. OF C. EX. & S.T., LTU Vs. ABB LTD.

JUDGEMENT

(1.) The substantial question of law that arises for consideration in this appeal is, "Whether the service recipient in India is liable to pay the Service Tax when the service provider is a non-resident or is from outside India and it does not have any office in India under the provisions of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994, issued in exercise of power under Section 94 of Finance Act, 1994?" The relevant period is between 18-4-2006 to June, 2006. This question arose for consideration before this Court in C.A. No. 33/2010, decided on 27-1-2010 [: 2011 (22) S.T.R. 615 (Kar.)]. In the aforesaid judgment, it was held that from 18-4-2006, the service provided by a person who is outside the country and who has no fixed establishment or permanent address in the country, such a taxable service shall be treated as a recipient of service, had himself provided the service in India and accordingly, all the provisions of Section 66A is attracted. Therefore, it was held, prior to 18-4-2006, the Service Tax was not payable by the recipient in the event service provided is outside the country and he has no permanent address or place of business within the country.

(2.) In the instant case, the Service Tax demanded from the assessee was for the period both prior to 18-4-2006 and subsequent to 18-4-2006. In view of the aforesaid judgment, there is no liability to pay Service Tax prior to 18-4-2006. Insofar as the liability to pay Service Tax subsequent to 18-4-2006 is concerned, the liability exists, as rightly held by the Tribunal. But the said claim is made beyond the period prescribed in law and therefore, not recoverable. Therefore, we do not see any justification to entertain this appeal. Accordingly, it is dismissed.