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2016 (1) TMI 973 - CESTAT MUMBAI

2016 (1) TMI 973 - CESTAT MUMBAI - 2016 (42) S.T.R. 772 (Tri. - Mumbai) - Business Auxiliary service or not - activity of collection/dispatch of Speed Post/Export Delivery Letter etc. on behalf of the Post Office - Revenue neutral exercise - Held that:- Before going into the merit whether the services is taxable or otherwise and also on the limitation, we find that the fact is not under dispute that the services provided by the assessee is at the most considered as input services for the postal .....

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ssessee. This Tribunal, time and again held that in case of revenue neutral the demand does not exist. - In view of the various judgments, it is clear that if service tax is paid by the assessee, same shall be available as Cenvat credit to the postal department and to that extent net liability of service tax shall stand reduced while paying the service tax by the postal department. Therefore, it is an exercise of revenue neutral for this reason demand does not exist. We, therefore, drop the .....

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passed by the Commissioner of Central Excise & Service Tax (Appeals-IV), Mumbai-I, wherein Ld. Commissioner (Appeals) partly allowed the appeal of the assessee by dropping demand being time bar for the extended period and demand of normal period of one year has been upheld. 2. The issue involved in the present case is whether the assessee who is providing service of Business Auxiliary Services such as collection/dispatch of Speed Post/Export Delivery Letter etc. on behalf of the Post Office .....

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e assessee is acting as intermediary for collection of letters, affixing postal stamps for which he is getting commission from postal department on the turnover. In the adjudication, demand was confirmed holding that the assessee is independent service provider and the postal department is a service recipient and for the said services, the assessee is receiving service charges in the form of commission, therefore, their independent activity is liable for service tax. In the appeal by the assesse .....

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rvice tax on service charged by the assessee has also been paid by the postal department. If the assessee is asked to pay separate service tax, it will amount to double taxation which is not permissible in the law. He submits that it is only one service i.e postal service and assessee is acting as intermediary therefore they cannot be held liable for payment of service tax. He placed reliance on following judgments: - Popular Vehicles & Services Ltd. vs. Commissioner of C.Ex., Kochi 2010(18) .....

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son that postal department is discharging the service tax on the total postal services. He submits that in the Service Tax law every individual who provides the services is liable to pay Service Tax irrespective of the service subsequently merged with other services and service tax is discharged in the hands of the service recipient. As regards Revenue's appeal, he submits that since assessee has not disclosed their activity to the department, it amounts to suppression of facts and therefore .....

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hich obviously includes service value of the assessee. In this situation, if service tax is paid by the assessee, the assessee's services is an input service for the postal department and postal department is entitled for Cenvat credit, thus in our view the present case is of Revenue neutral as the postal department is entitled for CENVAT credit of the service tax if at all payable by the assessee. This Tribunal, time and again held that in case of revenue neutral the demand does not exist, .....

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e same outcome. Moreover, if any service tax is paid by the appellants on commission received, MIBL/MUL will be eligible for credit of such tax paid, thereby rendering the impugned demand a revenue neutral exercise. In the circumstances, there cannot be demand of any service tax under BAS for the share of commission received by MIBL/MUL and paid to the dealers. The impugned orders are therefore not sustainable. They are set aside to the extent they affirmed orders-in-original No.4/2006 and 16/20 .....

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e received by CPT liable to tax under Port Services at the hands of the appellant. Letting out the port premises for operation by IGTPL does not amount to rendering of port service. In any case, if at all any service tax is paid on this amount, the same would be available to IGTPL as cenvat credit, which can be used for paying service tax on port services rendered by it. We find this demand not sustainable. 5.2 As regards the rent collected from individuals/agencies for allowing them to construc .....

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iled by CPT. DNS CONTRACTOR Vs COMMISSIONER OF CENTRAL EXCISE, DELHI -I 2015 (37) STR 848(Tri-Del) 4. Without going into the detailed arguments, I find that as per various pronouncements of the Tribunal, if the service tax liability stand discharged on the full and complete value, the sub-contractor cannot be taxed again in respect of same services, on that part value in the services provided by them. Admittedly it would amount to double taxation in respect of same services, Tribunal in the case .....

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tax on separate activities, which service tax would be available as credit to the main contractor. Learned Jt.CDR relies on the Tribunal's decision in the case of Safe and Sure Marine Services Pvt. Ltd. vs. CST, Mumbai reported as [2012 (28) STR 30 (Tri-Mum)] laying down that it is the responsibility of the sub contractor to pay service tax. But keeping in view the other decisions referred supra, and keeping in view that when the principle contractor has paid the service tax on the entire va .....

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