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2013 (2) TMI 509 - AT - Service TaxRent-a-cab Services - non obtaining of service tax registration up to January 2008 and without paying service tax on the amount received by them for providing taxable service - whether the appellant herein is eligible to claim the benefit of cum-tax value on the bills which has been raised by him as service provider - Held that:- As decided in Advantage Media Consultant (2008 (3) TMI 59 - CESTAT KOLKATA) also confirmed in [2008 (10) TMI 570 - SUPREME COURT] Service tax is an indirect tax. As per this system of taxation, tax borne by the consumer of goods/services is collected by the assessee (manufacturer/service provider) and remitted to the Government. When the amount is collected for the provision of services, the total compensation received should be treated as inclusive of service tax due to be paid by the ultimate customer of the services unless service tax is also paid by the customer separately. So considered, when no tax is collected separately, the gross amount has to be adopted to quantify the tax liability treating it as value of taxable service plus service tax payable also this principle has been legislated with effect from 18-4-2006 in Section 67(2) of the Finance Act, 1994 that where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as with the addition of tax payable, is equal to the gross amount charged - the appellant is eligible to cum-tax benefit of the amounts received from the service recipient and the same being differential amount, which has been confirmed by the lower authorities the impugned orders to the extent they confirm the differential service tax liability of Rs. 33,929/- along with interest are set-aside and also the consequent penalties - in favour of assessee.
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