Custom, Excise & Service Tax Tribunal
M/S. Ti Metal Forming vs Commissioner Of Service Tax, Chennai on 3 June, 2015
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
ST/86/2008
(Arising out of Order-in-Revision No. 22/2008 dated 17.1.2008 passed by Commissioner of Service Tax, Chennai)
M/s. TI Metal Forming Appellant
Vs.
Commissioner of Service Tax, Chennai Respondent
Appearance Shri S. Rahul Jain, Chartered Accountant for the Appellant Shri M. Rammohan Rao, DC (AR) for the Respondent CORAM Honble Shri R. Periasami, Technical Member Honble Shri P. K. Choudhary, Judicial Member Date of Hearing / Decision: 03.06.2015 Final Order No. 40609 / 2015 Per R. Periasami The short issue in this appeal relates to demand of service tax under reverse charge from the appellant on the royalty and technical knowhow paid to overseas companies M/s.Dong Won Metal Ind. Co. Ltd., Korea and Edward Rose Limited, England for the period from 28.2.1999 to 10.1.2004. Commissioner of Service Tax in his revision order No. 22/2008 dated 17.1.2008 confirmed the demand of Rs.16,35,573/- and imposed penalty of Rs.17 lakhs under section 78 of the Finance Act, 1994.
2. After hearing both sides and on perusal of the records, we find that the issue already stands settled by the decision of the Honble Supreme Court in the case of Union of India Vs. Indian National Shipowners Association Ltd. 2010 (17) STR 357 (SC) which has also been confirmed by CBEC vide F.No.276/8/2009-CX 8A, dated 26.9.2011 wherein service tax under reverse charge on the recipient is applicable only with effect from 18.4.2006. The present demand being prior to 18.4.2006 i.e. 28.2.1999 to 10.1.2004, respectfully following the decision of the Honble Supreme Court in the case of Indian National Shipowners Association (supra) we set aside the impugned order and allow the appeal.
(Dictated and pronounced in open court)
(P.K. CHOUDHARY) (R. PERIASAMI)
Judicial Member Tehnical Member
Rex
2