Steel Authority Of India Ltd. v. Cce & St

Dr. D.M. Misra:— Heard both sides.

2. This is an appeal filed against Order-in-Original No. 105/ST/Commr/08 dated 19.06.2008 passed by the Commissioner of Central Excise & Service Tax, Ranchi.

3. Briefly stated the facts of the case are that the appellant was issued with a demand notice for recovery of Service Tax of Rs. 1,29,64,552/- alleging that the appellant had though received taxable services under the category of “consulting engineering services” namely design and drawing, supervision services from overseas services providers in relation to modernization/expansion of their plant in India for the period 01.10.1999 to 15.08.2002, but not discharged service tax.

4. The ld. C.A. for the applicant submits that the issue is no more res-integra and is covered by the decision of the Hon'ble Bombay High Court in the case of Indian National Shipowners Association v. Union Of India & Ors., 2009 (13) S.T.R. 235 (Bom.), which was later upheld by the Hon'ble Supreme Court reported as UOI v. Indian National Shipowners Assocition, 2010 (17) S.T.R. J-57 (SC).

5. The ld. AR for the Revenue does not dispute the said facts and submitted that in view of the Circular No. 276/8/2009-CX dated 26.09.2011, the Ministry had accepted the Supreme Court judgements to the effect that no Service Tax is leviable on the taxable services received in India and provided by a non-resident or a person located outside India prior to 18.04.2006.

6. We find that undisputedly the Appellant received taxable services from service providers situated outside India during the period 01.10.1999 to 15.08.2002. The chargeability of Service Tax for taxable services received in India and provided from a person located outside India prior to insertion of section 66A i.e. from 18.04.2006, has been settled by the Hon'ble High Court in the case of National Shipowners Association's case (supra) and upheld by the Hon'ble Supreme Court. The said principle later accepted by the department by issuing Circular dated 26.09.2011. In view of the above, the impugned order is set aside and the Appeal is allowed with consequential relief, if any, as per law.