Appellants cannot shift service tax liability to agents; Section 73A(2) Finance Act applies for non-deposit cases

The SC addressed whether appellants could shift their service tax liability to insurance agents and the applicability of Section 73A(2) of the Finance Act, 1994, regarding non-deposit of recovered service tax from 2006-07 to June 2012. The CESTAT's reliance on Rule 3(a) of the Service Tax Rules was found misplaced, as the taxable value was ascertainable. The SC directed issuance of notice and tagged the matter with related Civil Appeals Nos. 279-280 of 2020 for further consideration.

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The Supreme Court of India, through Justices Surya Kant and J.B. Pardiwala, issued an order condoning the delay and issuing notice in the matter. The Court permitted dasti service and directed the case to be tagged with Civil Appeal Nos. 279-280 of 2020.

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