Custom, Excise & Service Tax Tribunal
M/S. Reynold S Pens India Pvt. Ltd vs Commissioner Of Service Tax, Chennai on 2 February, 2017
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
ST/146/2008
(Arising out of Order-in-Revision No. 3/2008 dated 27.3.2008 passed by the Commissioner of Service Tax, Chennai)
M/s. Reynolds Pens India Pvt. Ltd. Appellant
Vs.
Commissioner of Service Tax, Chennai Respondent
Appearance Smt. Radhika Chandrasekar, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Honble Shri Madhu Mohan Damodhar, Technical Member Date of Hearing / Decision: 02.02.2017 Final Order No. 40141 / 2017 Per D.N. Panda It is agreed proposition by both sides that when there was no provision in law for levy of taxes on the service recipient during the material period, the appellant shall not be liable to tax. Service tax has been imposed on royalty payment under Consulting Engineering Service with effect from 18.4.2006 on reverse charge mechanism. The Honble Supreme Court in the case of Union of India Vs. Indian National Shipowners Association as reported in 2010 (17) STR J57 (SC) having affirmed the decision of the Honble High Court of Bombay as reported in 2009 (13) STR 235 (Bom.), holding above proposition of law, there shall be no further controversy to demand service tax from the appellant.
2. Accordingly, the appeal is allowed.
(Dictated and pronounced in open court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
Technical Member Judicial Member
Rex
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ST/146/2008