2011 (2) TMI 887 - AT - Service Tax

Appellate Tribunal remands case on liability of Service Tax when party renders service to oneself.

The Appellate Tribunal set aside the lower appellate authority's order and remanded the case for further consideration on the liability of Service Tax ... Service tax liability - Appellant submitted that in case if one renders service to oneself whether Service Tax is payable or not - In support of this contention, he relied on the decision of this Tribunal in the case of Precot Mills Ltd. v. CCE [2006 (2) TMI 25 - Appellate Tribunal, Bangalore] wherein the issue was decided in favour of the assessee - He further submitted that without commenting on this issue, the lower appellate authority has remanded the matter to the adjudicating authority to decide some other issues - Hence, the matter be remanded to the Commissioner (Appeals) to first decide the issue whether the appellants are liable to pay Service Tax in case they render the service to themselves or not - The appeal is allowed by way of remand. Issues:1. Liability of Service Tax when one renders service to oneself.Analysis:The case involved an appeal against an order concerning the liability of Service Tax when a party renders service to oneself. The appellant, an authorized service station of Maruti vehicles, was engaged in reconditioning and repairing old vehicles owned by themselves, which were later sold to customers. The dispute centered on the imposition of Service Tax on this activity. The appellant contended that if one renders service to oneself, there should be no liability for Service Tax. The appellant cited a previous Tribunal decision in Precot Mills Ltd. v. CCE [2006] to support their argument. However, the lower appellate authority did not address this specific issue and instead remanded the matter for consideration of other issues.Upon review, the Appellate Tribunal found that the lower appellate authority had not considered the crucial issue of whether Service Tax is payable when one renders service to oneself. Consequently, the Tribunal agreed with the appellant's contention that this aspect required further examination. As a result, the Tribunal set aside the order and remanded the case back to the lower appellate authority to determine whether Service Tax is leviable in a scenario where service is provided to oneself. The appeal was allowed on the grounds of remand for a detailed consideration of the specific issue raised by the appellant.In conclusion, the judgment highlighted the importance of addressing the specific issue of liability for Service Tax when services are provided to oneself. The Tribunal emphasized the need for a comprehensive examination of this aspect, as it was crucial in determining the tax liability in such circumstances. The decision to remand the case back to the lower appellate authority reflected the Tribunal's commitment to ensuring a thorough analysis of the legal question at hand before reaching a final decision on the matter.