https://www.taxtmi.com/caselaws?id=445265 CESTAT Hyderabad ruled in favor of appellant regarding service tax liability under reverse charge mechanism for works contract service. The tribunal held that the governmental authority could not be considered a business entity despite being a body corporate, as it lacked profit motive. Collection of processing charges or cost markup on medicines did not constitute business activity. Since the authority was not a business entity, Notification No.30/2012-ST requiring 50% service tax payment under reverse charge basis was inapplicable. The appeal was allowed, granting relief to appellant. en-us Thu, 02 Nov 2023 00:00:00 +0530 Fri, 16 Aug 2024 14:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445265 CESTAT Hyderabad ruled in favor of appellant regarding service tax liability under reverse charge mechanism for works contract service. The tribunal held that the governmental authority could not be considered a business entity despite being a body corporate, as it lacked profit motive. Collection of processing charges or cost markup on medicines did not constitute business activity. Since the authority was not a business entity, Notification No.30/2012-ST requiring 50% service tax payment under reverse charge basis was inapplicable. The appeal was allowed, granting relief to appellant. Case-Laws Service Tax Thu, 02 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445265