RUBAMIN LABORATORIES LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in the appeal is whether the appellants are liable to pay service tax on the services received from the commission agent located abroad during the period prior to 16/6/2005.

(2.) LD . Advocate Shri J.C. Patel on behalf of the appellants submitted that the Larger Bench of the Tribunal in Hindustan Zinc Ltd. has already held that liability of service recipient in respect of services provided by a non -resident or from outside India is from 1/1/2005 only. However he also cited the Hon'ble High Court of Bombay in their decision in Indian National Ship Owners Association's case as reported in, 2008 TIOL 633 HC -MUM -ST. Hon'ble Court held that in view of the fact that explanation below Section 65(105) was added by Finance Act, 2005 w.e.f. 16/6/2005, the liability of the service tax on the recipient of services cannot be held to be effective prior to that date. By this explanation services provided by a non -resident outside India to a person residing in India have been declared to be a taxable service. In view of the above two decisions, he submits that the demands raised against appellants all of which relate to the period prior to 16/6/2005, cannot be sustained. I find that the cited judgments by the ld. Advocate are applicable to the facts of the case and accordingly allow the appeal filed by the appellants with consequential relief.