Tribunal Rules Toll Tax Not Business Auxiliary Service The Tribunal ruled in favor of the appellants, determining that toll tax collected at the toll plaza did not constitute Business Auxiliary Services under ...
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Tribunal Rules Toll Tax Not Business Auxiliary Service
The Tribunal ruled in favor of the appellants, determining that toll tax collected at the toll plaza did not constitute Business Auxiliary Services under the Service Tax category. Citing precedents and settled issues, the Tribunal set aside the impugned order and granted consequential relief to the appellants, emphasizing that toll collection on highways did not qualify as a service provided to NHAI.
Issues involved: Whether toll tax collected by the appellants at the toll plaza under an agreement with MCD would call for payment of Service Tax under "Business Auxiliary Services" category.
Analysis:
1. The Tribunal noted that the issue in question had been previously addressed in various cases. Referring to the decision in the case of PNC Construction Co. Ltd. Vs CCE, Chandigarh, it was observed that providing Business Auxiliary Services (BAS) to entities like NHAI (National Highways Authority of India) was not applicable if the entity was not engaged in commercial activities. The Tribunal emphasized that toll tax and fee for the use of a bridge, where a percentage of the collection is retained, does not fall under the BAS category. The Tribunal also highlighted that when judicial forums interpret an issue differently, the extended period cannot be invoked.
2. Citing the case of Patel Infrastructure Pvt. Ltd. vs Commissioner of Central Excise, Rajkot, it was reiterated that toll collection on highways cannot be considered a Business Auxiliary Service provided by the assessee to NHAI. The Tribunal found that the issue had already been settled through previous decisions, leading to the conclusion that the impugned order should be set aside. By following the precedent decisions, the Tribunal allowed the appeal and granted consequential relief to the appellants.
In conclusion, the Tribunal, after considering the precedents and settled issues, decided in favor of the appellants, setting aside the impugned order and allowing the appeal with consequential relief.
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