Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 665 - CESTAT NEW DELHIBusiness Auxiliary Service - Commission agency service or not? - appellant is engaged as a contractor on behalf of the Government Departments to collect sales tax, royalty and toll tax - Revenue was of the view that in cases where the actual collection was more than the amount paid to the authorities, the difference is in the form of the commission received by the appellant. Considering the appellant to be a ‘Commission Agent’, Revenue was of the view that Service Tax is liable to be paid on such commission under the category of Business Auxiliary Service. Held that:- Service Tax under the category of ‘Business Auxiliary Service’ would become liable only if the service is rendered in relation to the business of the recipient - In the present case, the appellant, as a contractor, has engaged in collecting statutory levies on behalf of the Government department (CTD)/ statutory authority (NHAI) neither of whom are engaged in business - the levy of Service Tax cannot be sustained on the Commission retained by the appellant. Activity of toll collection - Held that:- It is also fairly well settled that no Service Tax can be levied on such an activity as held by the Tribunal in the case of Commissioner v/s Intertoll ICS [2011 (5) TMI 257 - CESTAT, NEW DELHI], where it was held that N/N. 13/2004 specifically exempts the service tax liability on such services of collection of duties and taxes levied by Government - demand set aside. Collection of commercial taxes for CTD - Held that:- The appellant will also be entitled to the benefit to exemption under N/N. 13/2004-ST dated 10/09/2004 which specifically exempts the services provided by any person to the Government of State in relation to collection of any duties or taxes levied by the Government from the whole of the Service Tax leviable thereon - demand set aside. Appeal allowed - decided in favor of appellant.
|