Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1436 - AT - Service TaxLevy of service tax - deputation of employees the corporate group - amount paid by one company in the corporate group to another - whether coming within the scope of 'service' or not - no consideration - Held that:- The definition of taxable service was amended during the period in dispute to substitute 'commercial concern' with 'any person' - The rendering of service, to be taxable, is no longer restricted to such concerns as are professionally engaged in manpower recruitment and supply. The finding of the Hon'ble Supreme Court in Intercontinental Consultants and Technocrats Pvt Ltd [2018 (3) TMI 357 - SUPREME COURT OF INDIA] that the inclusion of value in section 66 imposing the tax on service restricted the scope of value to the service itself till the subsequent incorporation of Explanation in section 67 of Finance Act, 1994 would also lead to the further conclusion that levy of tax is permitted by law contingent upon there being a value inherent as consideration for the service and not a provision of service gratis to which a value could be assigned under the relevant Rules. There is no allegation in the SCN, or in the impugned order, that the appellant had retained any amount from out of the payment received from the group company, thus, discrediting the receipt of any consideration by the appellant. There is no provision in the relevant rules for computing the value in the absence of consideration even though provisions exist for monetising consideration other than in money. Absence of consideration is not the same as uncountable consideration requiring rules for conversion. In the absence of any consideration, there is no taxable service and, in the absence of taxable service, leviability of duty would not arise - appeal allowed - decided in favor of appellant.
|