ANANT SPINNING MILLS Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE learned Counsel for the applicant argues that services were not rendered in India during the relevant period i.e. between 09.07.2001 and 15.06.2005 and hence they were not liable to pay service tax. In this context, he relies upon a judgment by the Hon'ble the Supreme Court in Ishikawajma Harima Heavy Industries Limited v. Director of Income Tax (SC) reported in (2007) ITR 228 408 (SC) for making a proposition, clothed in his own words "services which are rendered out of India even if used in India are considered as services out of India". A closer perusal of paragraph 91 of the said judgment on which reliance was placed would however, indicate the following:

(3.) DURING the hearing we also had occasion to examine Clause 13 of the agreement dated 1.4.2004 entered into by the applicant with the foreign agent (M/s Altremi Giovanni). This clause has defined the jurisdiction of the Court for settling disputes in the following manner: