https://www.taxtmi.com/caselaws?id=787268 Where the partial reverse charge mechanism applies, the article directs the adjudicating authority to verify whether service providers actually discharged the entire service tax (including payments made on behalf of recipients); if providers discharged 100% of the liability, demands against recipients cannot be sustained. Where payment by providers is not established or recipients reimbursed providers, demands, interest and penalties may be confirmed. The piece clarifies that revenue neutrality under reverse charge does not bar invocation of the extended period of limitation or levy of penalty where the recipient was aware of statutory obligations and failed to prove discharge by the provider. en-us Fri, 27 Feb 2026 00:00:00 +0530 Mon, 02 Mar 2026 08:34:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787268 Where the partial reverse charge mechanism applies, the article directs the adjudicating authority to verify whether service providers actually discharged the entire service tax (including payments made on behalf of recipients); if providers discharged 100% of the liability, demands against recipients cannot be sustained. Where payment by providers is not established or recipients reimbursed providers, demands, interest and penalties may be confirmed. The piece clarifies that revenue neutrality under reverse charge does not bar invocation of the extended period of limitation or levy of penalty where the recipient was aware of statutory obligations and failed to prove discharge by the provider. Case-Laws Service Tax Fri, 27 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787268