ACTIVE INTERNATIONAL Vs. COMMISSIONER OF CENTRAL EXCISE, JALANDHAR

JUDGEMENT

(1.) COMMON issue is involved in these appeals and, therefore, all are being taken up together for disposal.

(2.) THE issue involved in these appeals is as to whether service tax is payable on the amount paid by the assessee as commission to overseas agent, foreign based company, who had no office in India. The period of dispute is 8.7.04 to 31.3.05 in the case of Active International and from 9.7.2004 to 30.9.2005 in the case of M/s. Lohia Starlinger Ltd. Adjudicating authority confirmed demand of tax and imposed penalties. Commissioner (Appeals) modified the demand of tax partly in the case of Active International. So, the Revenue and the assessees both filed the appeals against the order of the Commissioner (Appeals).

(3.) LEARNED SDR reiterates the findings of the Commissioner (Appeals). He also submits that the Tribunal in the case of Unitech Ltd. v. CST, Delhi, 2008 (88) RLT 953 (CESTAT -Del) after considering the decision of the Larger Bench in the case of Hindustan Zinc Ltd. (supra) held that recipient of services provided by the foreign company would be liable to pay tax with effect from 1.1.2005. He particularly drew the attention of the Bench to para, 3.4 and 3.5 of the said decision. For the purpose of proper appreciation the relevant portion of Unitech Ltd. (supra) is reproduced below: