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2017 (12) TMI 967 - AT - Service TaxBusiness Auxiliary services - services provided by the appellant to various clients on behalf of other event managing parties like M/s Rural Communication Marketing Pvt. Ltd. and M/s Lintas India (P) Ltd. - case of Revenue is that Since, the appellants did not organize the events, road shows directly for the client, the services rendered were sought to be taxed as BAS - extended period of limitation - Held that: - there is no merit in the submission of the appellant that the parties to whom they raised bill and received the consideration cannot be considered as their clients or service recipient. The services were rendered to the main client on behalf o these two parties. Though, the appellant provided only part of the service which was agreed upon between these two parties and the ultimate client, the same will be squarely covered under the tax entry of BAS– “provision of service on behalf of the client” - There is a reason for a bonafide belief in such arrangement regarding non-liability of sub-contractor when the main contractor is liable to discharge full service tax. Though the said principle is not applicable against the tax liability but the question of invoking extended period is to be answered in favor of the appellant - there is no case of fraud, mis-statement etc. in the non-payment of tax on this activity by the appellant, extended period cannot be invoked. N/N. 16/2002-ST - services rendered by the appellant through M/s Lintas India (P) Ltd. for UNICEF - denial on the ground that the appellants did not provide service directly to UNICEF - Held that: - Though the bills were raised in the name of M/s Lintas India (P) Ltd., the nature of service is clearly mentioned as charges towards branding cost of three UNICEF Van, UNICEF Girl Star activities, cost of UNICEF Float Operational for 30 days, branding of Van for UNICEF. A perusal of these bills make it clear that the services are for UNICEF though the bill is raised through M/s Lintas India (P) Ltd. - denial of exemption not sustainable. Appeal allowed in part.
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