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2010 (6) TMI 254 - AT - Service TaxSecurity Agency Service - The assessees challenge the service tax demand of ₹ 12,67,930 and penalty of ₹ 1,74,000 imposed under section 76 and ₹ 1,000 imposed under section 77 of the Act. The demand consists of two parts - (i) demand of ₹ 9,88,261 on commission paid to depot managers by the assessees who are manufacturers of cotton yarn and (ii) brokerage paid to selling agents i.e., yarn brokers. Held that - in the light of the decision of Larsen & Toubro Ltd. v. CCE 2006 (6) TMI 3 - CESTAT NEW DELHI, demand on brokerage paid to yarn brokers was to be set aside. But demand on commission paid to depot managers was being upheld, as liability in that respect was conceded by assessee, penalties imposed u/s 76 and 77 were to be upheld.
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