1. This appeal is by the Revenue. There is no representation for the respondents despite notice, nor any request of theirs for adjournment.
2. After a perusal of the grounds of this appeal, and hearing the ld.SDR, I note that the short question arising for consideration in this case is whether the respondents were liable to pay interest under Section 75 of the Finance Act, 1994 on the amount of service tax paid by them on the services received from abroad for the period 28.2.1999 to 16.8.2002. It was only w.e.f. 16.8.2002 that a person receiving taxable service in India from abroad (where the non-resident service-provider did not have any office in India) became liable to pay service tax on such service vide Notification No. 12/2002-ST dt.
1.8.2002, which amended Rule 2(1)(d) of the Service Tax Rules, 1994 w.e.f. 16.8.2002. Before 16.8.2002, such service-recipients like the respondents had no liability to pay service tax on any service received from a non-resident service-provider having no office in India. Where there was no tax liability, there was no interest liability either. The mere fact that the respondents might have paid service tax prior to 16.8.02 even in the absence of tax liability would not make them liable to pay interest on such tax. In this view of the matter, the impugned order is sustained and this appeal is dismissed.