TaxTMI 
TaxTMI 
TaxTMI 
Service Tax - Reverse Charge liability paid by Service Provider, should not be demanded again from Service Recipient
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....ervice Tax - Reverse Charge liability paid by Service Provider, should not be demanded again from Service Recipient<br>By: - Bimal jain<br>Service Tax<br>Dated:- 4-2-2014<br><br>Dear Professional Colleague, Service Tax - Reverse Charge liability paid by Service Provider, should not be demanded again from Service Recipient We are sharing with you an important judgement of the Hon'ble Mumbai CEST....
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....AT, in the case of Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 (2) TMI 100 - CESTAT MUMBAI] on following issue: Issue: Whether Service Tax can be demanded again from the Service Recipient under reverse charge, where the same has been paid by the Service Provider and accepted by the Department? Facts & Background: M/s Umasons Auto Compo Pvt. Ltd. ....
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....("the Appellant" or "the assessee") was receiving Goods Transport Agency ("GTA") service from GTA service provider for which they were paying Service Tax to the provider of GTA service. The provider of GTA service deposited the amount of Service Tax to the Department, which was duly accepted by them. Subsequently, the Appellant has availed Cenvat credit of the amount of Service Tax so paid to the ....
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....provider of GTA service. The Assessing Officer raised demand for Service Tax on GTA services availed by the Appellant on the ground that in respect of GTA services, service recipient (i.e. the Appellant) is liable to pay Service Tax in terms of Section 68(2) of the Finance Act, 1994 ("the Finance Act"), and if the same has been paid by the service provider, recipient can seek refund of the same. ....
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....The assessee preferred an appeal before the Commissioner of Customs & Central Excise (Appeals), Aurangabad who has upheld the Adjudication order and confirmed the demand. Hence the Appellant preferred an appeal before the Hon'ble Mumbai CESTAT. Held: It is held by the Hon'ble CESTAT that once the amount of Service Tax is accepted by the Revenue from the provider of GTA service, it cannot be dema....
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....nded again from the recipient of the GTA service. Therefore, the Hon'ble CESTAT rejected the contention of the Department and decided the case in favour of the Appellant. Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us. Thanks & Best Regards. Bimal Jain FCA, FCS, LLB, B.Com (Hons) F-30/31/32, ....
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....Pankaj Grand Plaza 1st Floor, Mayur Vihar, Phase-I, Delhi - 110091 India Desktel: +91-11-22757595 Mobile: +91 9810604563 Email: bimaljain at the rate of hotmail.com Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any ....
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....loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon. Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document ....
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