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2018 (8) TMI 175 - AT - Service TaxSupply of manpower and agency service - partial reverse charge mechanism - Non-payment of 75% of service tax applicable on invoice value - payment of 100% taxable charges on services were individually collected by the service providers and they have deposited the same in the department as an agent of appellant. - N/N. 30/2012-ST dated 20.06.2012 read with Section 68(2) of Finance Act, 1994 and Rule 6 of Service tax Rules - Held that:- In the said Notification, w.e.f. 01.07.2012 in case of supply of manpower for any purpose or service in exemption of work contract by an individual, HUF or partnership firm whether registered or not including association of persons are required to pay 25% of service tax and the service receiver is required to pay 75% of the said tax. Having regard to the fact that such payment of service tax in the proportion of 75:25 is applicable in respect of specified service providers and there is nothing available on record to justify that the taxability of the appellant has been created by availing services from those category of service providers, there is no point in placing certain manpower service provided by the service provider whose firm names are referred in the audit report in those categories without any basis - raising of bills/ invoices and mentioning of percentage of tax payable by the service provider and service recipient, by the service provider itself would form the basis of identification of service providers, if they fall under those specified categories or under threshold limit in the organised sector and such a basis is found absent in the entire proceeding initiated against the appellant. Appeal allowed - decided in favor of appellant.
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