Rakesh Kumar, Technical Member. - The main point of dispute in this case is as to whether during the period from 1-8-2002 to 16-6-2005, the appellants received Architect’s services from M/s. Callison Architecture Inc., U.S.A. (hereinafter referred to as ‘M/s. Callison’), who do not have any office or business establishment in India and whether the appellants, as recipient of a taxable service from an offshore service provider are liable, in term of rule 2(1)(d)(iv) of the Service Tax Rules, 1994, to pay service tax amounting to Rs. 1,83,10,592 on an amount of Rs. 22,61,54,796 paid by them to M/s. Callison. The Commissioner by the impugned order has -

(a)confirmed the service tax demand of Rs. 1,83,10,592 under section 73(1) of the Finance Act, 1994, by invoking extended period of limitation, along with interest at the applicable rate on this amount as per the provisions of section 75,

(b)imposed penalty of Rs. 1,000 under section 77 of the Act and penalty of Rs. 100 per day under section 76 of the Act for failure to pay the service tax till the payment of the entire amount of tax, and

(c)penalty of Rs. 1,83,10,592 on the appellant under section 78 of the Act.

2. Heard both the sid