Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 318 - AT - Service TaxExtended period of limitation - Demand of Service tax - including both fixed and variable amounts of commission in the taxable value - Clearing and Forwarding agent services - Suppression - Held that:- the Revenue has taken up an identical issue regarding valuation of the services covering an earlier period by invoking the suppression clause and claimed the extended time limit for demand of service tax. On an identical issue invoking suppression and extended time limit for one more time clearly cannot be done and hence the demand for the period beyond the normal time limit available under Section 73 of the Finance Act, 1994 fails. With reference to the Section 67 of the Finance Act, 1994 read with Service Tax (Determination of Value) Rules, 2006, the consideration has to include all amounts charged for providing service. This should include the fixed as well as variable parts of the consideration received by the appellant. This brings us to the claim of the appellant that he functioned as a pure agent of the service receiver and hence the amount reimbursed by M/s Lafarge India Limited cannot form part of value of taxable service. The first appellate authority has clearly given a finding that the appellant has not satisfied the conditions prescribed in Rule 5 of the Service Tax (Determination of Value) Rules, 2006 to satisfy the criteria for a pure agent. Therefore, no reason found to defer from that view and hence uphold the merits of the order. However, the demand will need to be reworked out for the normal time limit under Section 73. - Appeal disposed of
|