https://www.taxtmi.com/caselaws?id=762501 CESTAT NEW DELHI dismissed appeal regarding service tax recovery on royalty collection and hotel rent. Tribunal held that service tax under Business Auxiliary Service category applies only when service relates to recipient's business. Since appellant collected statutory levies for government department/NHAI (not engaged in business), no service tax liability arose on royalty amounts above bid price. Demand of Rs.21,87,591 was dropped. For hotel rent service tax demand, appellant received exemption benefits under relevant notifications, reducing liability to Rs.98,933 only. Appellant had already paid Rs.8,14,094, leaving balance of Rs.98,933 plus interest payable. No penalty imposed. en-us Mon, 25 Nov 2024 00:00:00 +0530 Tue, 03 Dec 2024 08:44:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762501 CESTAT NEW DELHI dismissed appeal regarding service tax recovery on royalty collection and hotel rent. Tribunal held that service tax under Business Auxiliary Service category applies only when service relates to recipient's business. Since appellant collected statutory levies for government department/NHAI (not engaged in business), no service tax liability arose on royalty amounts above bid price. Demand of Rs.21,87,591 was dropped. For hotel rent service tax demand, appellant received exemption benefits under relevant notifications, reducing liability to Rs.98,933 only. Appellant had already paid Rs.8,14,094, leaving balance of Rs.98,933 plus interest payable. No penalty imposed. Case-Laws Service Tax Mon, 25 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762501