Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Dinesh M. Kotian Versus Commissioner of Central Excise & Service Tax-I, Mumbai And Vica-Versa

2016 (1) TMI 973 - CESTAT 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 department. The postal department is admittedly paying the service tax on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l 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 demand on the point of revenue neutrality without addressing the issues of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

V), 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 is taxable or otherwise in terms of section 65 of Finance Act, 1994. 3. T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ostal 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 assessee, Ld. Commissioner (Appeals) dropped the part of the demand on the ground .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tal 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)ELt 493(Tri-Bang) - Cochin Port Trust vs. CCE, Cochin 2011(21)STR 400 (Tri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tal 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 Ld. Commissioner (Appeals) has erred in dropping the demand on limitation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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, some of the judgements are referred below. M/s POPULAR VEHICLES AND SERVIC .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 16/2006 and these appeals are allowed. M/s COCHIN PORT TRUST Vs COMMISSIONER OF .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pellant. 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 construct and operate jetties, we find it to be rent and not value for port servic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

15 (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 of M/s. Anand Sales Corpn and others vs CCE Kanpur Final Order No. 50337- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 value, and keeping in view that exchequer cannot be enriched on account of d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version