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2014 (2) TMI 1130 - AT - Service TaxClassification of service - GTA service or Site formation and clearance, excavation and earthmoving and demolition activity - removal of all materials in all kinds of strata with its drilling, excavation, loading, transport and dumping, spreading and dozing at specified places as per instructions of the client - Held that:- There is no evidence before us to show that transportation activity was the predominant activity, nor any attempt has been made by the appellant as to the amount received in respect of transportation activity or that transportation was predominant activity and the other activities undertaken by the appellant were ancillary to transportation. In the absence of any evidence in this regard, we are unable to accept the contention of the appellant that they are not liable to discharge service tax liability on the aforesaid activity - Penalty imposed also sustainable - Decided against assessee. Levy of penalty - non collection of service tax from the recipient of services - Held that:- Merely because the service recipient did not pay the service tax liability initially, that would not take away/obliterate the liability on the service provider to discharge the tax. If this plea is accepted, it would make the taxable event as receipt of service tax from the recipient of the service which is not the law. The law envisages payment of service tax on rendering of taxable service and it has nothing to do with the receipt of service tax from the service recipient. Therefore, this plea of the appellant that the service-recipient did not reimburse service tax and hence the appellant did not pay service tax is not acceptable or satisfactory explanation. - Levy of penalty confirmed.
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