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2020 (2) TMI 1013 - AT - Service TaxBusiness Auxiliary Service - surplus amount - collection of toll, royalty, on behalf of the State Government or Government Department - appellant may either collect more amount than the bid amount and thereby have some profit or surplus or they may collect less amount than the bid amount and thus incur loss - it appeared to Revenue that the surplus amount collected by the appellant, is commission earned for providing the toll/ royalty collection service to the Government. HELD THAT:- There is no defined consideration, which is an essential element or pre-condition in a contract of service. Admittedly, appellant is not entitled to retain any amount by way of commission, irrespective of the total amount of royalty collected. Admittedly, the appellant incurred loss in some financial year and have got surplus in some of the financial years. Further, it is admitted fact on record that there is no defined consideration, as required under Section 65B(44) of the Finance Act. The appellant have provided no service to the Department of Mines & Geology, Government of Rajasthan. The appellant have entered into business on principal to principal basis - impugned order not sustainable - appeal allowed - decided in favor of appellant.
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