TaxTMI 
TaxTMI 
2018 (6) TMI 665
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.... participated in the bids floated by National Highways Authorities of India (NHAI); Department of Mines and Geology (DMG); and Commercial Tax Department, Rajasthan State (CTD). For NHAI, the appellant worked as a contractor in the collection of toll tax. For DMG, likewise, they were contractors for collection of royalty on mines. In respect of Commercial Tax Department, they were the contractor to whom the task of collection of commercial tax was outsourced. The appellant successfully participated in the bid invited by the above agencies and was awarded the right to collect toll/ royalty/ commercial tax. For the grant of such right, the appellant agreed to pay the bid amount in lump sum. In exercise of the Right so acquired, the appellant c....
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....nts were collected by the appellant in their own right. Further, he submitted that for the levy of Service Tax under BAS, the alleged activities must pertain to the business of service recipient. In the instant case the activities are carried out for Government Department/ statutory authorities which cannot be said to be carrying out any business. ii. He placed reliance on a series of decisions in which toll collection has been held to be not liable to payment of Service Tax. Some of the decisions are listed below:- a. Intertoll Indi Consultants (P) Ltd v. Commissioner, 2011 (24) STR 611 (Tri-Del) b. Commissioner v. Intertoll ICS CE Conso & MP Limited, 2013 (31) STR 477 (Tri-Del) c. Sukhmani Society for Citizen Services v. Commissio....
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....on Agent'. The definition of the term 'Commission Agent' appears in Explanation (a) in Section 65 (19) of the Act and the same is reproduced below:- "Explanation- For the removal of doubts, it is hereby declared that for the purposes of this clause.- a. "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person- i. Deals with goods or services or documents of title to such goods or services; or ii. Collects payment of sale price of such goods or services; or iii. Guarantees for collection or payment for such goods or services; or iv. Undertakes any act....
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....ation to business or commerce of the service recipient. We find this argument to be very persuasive. We find that the appellant has provided facilitization services to various departments. Hence, taxability under the category would arisen only if the Govt. department is engaged in business or commerce and services provided by the appellant are auxiliary to their business." As held by the Tribunal above, Service Tax under the category of 'Business Auxiliary Service' would become liable only if the service is rendered in relation to the business of the recipient. In the present case, the appellant, as a contractor, has engaged in collecting statutory levies on behalf of the Government department (CTD)/ statutory authority (NHAI) neither of ....