TMI Blog2016 (10) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... harging section is Section 66. 2000 Amendment to Section 66 changed the point of collection of tax from provider of service to “such manner as may be prescribed”. It has been found that the Service Tax Rules, 1994 provided for collection and recovery of tax from users or payers for the services and proviso to Section 68 prescribes the procedure for collection with reference to services of goods transport operators and clearing agents. In Para 39 the Hon’ble Apex Court has concluded that the proviso do not in any manner expand the subsection and in fact it gives effect to it. In the light of this later judgment delivered by the Hon’ble Apex Court, it is apparent that the communication dated 7-11-2003 is in consonance with the amended pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 9 shows a conclusion by the Hon ble Apex Court that service tax was being levied by reason of service offered and hence imposition was on the person rendering it. 4. By Section 158 of the Finance Act, 2003, a proviso has been added to Section 68 and by proviso (i), a person, who engages Clearing and Forwarding Agent, has been made responsible for collection of tax. By proviso (ii), a person who avails services of goods transport operator, has been entrusted with liability to collect tax. The provisions of Section 7A of the Service Tax Rules, 1994, as amended by Service Tax Management Rules, 2003, obliges an assessee i.e. present petitioner to collect tax, to file a return for the period from 16-7-1997 to 16-10-1998 in case of services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ody of the Section 68 did not cover the subject matter, there was no question of creating an exception in respect thereto by any proviso. The contention was thus by adding proviso (i) and (ii), the scope of original Section 68 could not have been enlarged. In Paragraph 38, the Hon ble Apex Court has held that Section 68 is a machinery section which provides for incidence of tax while charging section is Section 66. 2000 Amendment to Section 66 changed the point of collection of tax from provider of service to such manner as may be prescribed . It has been found that the Service Tax Rules, 1994 provided for collection and recovery of tax from users or payers for the services and proviso to Section 68 prescribes the procedure for collection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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