Service Tax : Services provided from outside India and received in India are taxable only from 18-4-2006 after introduction of section 66A; they cannot be taxed under reverse charge for period prior thereto
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[2014] 50 taxmann.com 75 (SC)
SUPREME COURT OF INDIA
Commissioner of Service Tax, Bangalore
v.
Metro Cash & Carry Survey*
H.L. DATTU AND CHANDRAMAULI KR. PRASAD, JJ.
APPEAL (CIVIL) NOS. 34254 - 34255 OF 2011†
DECEMBER 12, 2011
Section 66A, read with section 65(47) of the Finance Act, 1994 - Charge/levy - Service Tax on services received from outside India - Period prior to 18-4-2006 - Under licence agreement with a foreign company, assessee got rights to use trademarks and proprietary know-how in managing cash and carry business in India
- Against receipt of said service, assessee paid royalty to that foreign company - Department demanded service tax under reverse charge under franchise services - High Court held that liability to pay service tax would arise only from 18-4-2006 viz. after introduction of section 66A and set aside demand - Department filed special leave petitions before Supreme Court - HELD : In view of Circular/Instruction F. No. 275/7/2010-CX8A, dated 30-6-2011, nothing remained for consideration - Hence, special leave petitions were dismissed accordingly [Paras 1 and 2] [In favour of assessee]
Circulars and Notifications : Instruction F. No. 275/7/2010-CX8A, dated 30-6-2011
■■■
[2014] 50 taxmann.com 75 (SC)
SUPREME COURT OF INDIA
Commissioner of Service Tax, Bangalore
v.
Metro Cash & Carry Survey*
H.L. DATTU AND CHANDRAMAULI KR. PRASAD, JJ.
APPEAL (CIVIL) NOS. 34254 - 34255 OF 2011†
DECEMBER 12, 2011
Section 66A, read with section 65(47) of the Finance Act, 1994 - Charge/levy - Service Tax on services received from outside India - Period prior to 18-4-2006 - Under licence agreement with a foreign company, assessee got rights to use trademarks and proprietary know-how in managing cash and carry business in India
- Against receipt of said service, assessee paid royalty to that foreign company - Department demanded service tax under reverse charge under franchise services - High Court held that liability to pay service tax would arise only from 18-4-2006 viz. after introduction of section 66A and set aside demand - Department filed special leave petitions before Supreme Court - HELD : In view of Circular/Instruction F. No. 275/7/2010-CX8A, dated 30-6-2011, nothing remained for consideration - Hence, special leave petitions were dismissed accordingly [Paras 1 and 2] [In favour of assessee]
Circulars and Notifications : Instruction F. No. 275/7/2010-CX8A, dated 30-6-2011
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