TaxTMI 
TaxTMI 
2024 (9) TMI 618
X X X X Extracts X X X X
X X X X Extracts X X X X
....ider shall be liable to pay Service Tax on 25% of the taxable value charged by him. Service Tax on the remaining 75% of taxable value of the service, registered as corporate, engaged in receiving 'Man Power Supply Service' from proprietor/ Partnership Firm shall be liable to pay service tax. Accordingly, Service Tax on the 75% of the taxable value was demanded from the appellant being service recipient, despite the fact that the service provider has paid Service Tax on the 100% of the value of service received by the appellant. 2. Shri S Suriyanarayanan, Learned Counsel appearing on behalf of the Appellant at the outset submits that even though as per the legal provision the appellant was supposed to pay Service Tax on the 75% of the taxable value of 'manpower supply service' but in the fact that the service provider instead of paying service tax on 25% on the value, he has admittedly discharged the service tax on 100% value. Therefore, once the entire Service Tax was discharged no further Service Tax can be recovered from any other person. He placed reliance on the following judgments:- Hindustan Oil Exploration Co. Ltd. Vs. Commr. of S.T. Chennai- 2012 (25) 454 (Tri.-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is not in dispute. 4.3 It is observed that the facts of the payment of service tax by the appellant to the service provider is well established by the invoices which has been produced before us and were also produced before the Original Adjudicating Authority. Some sample invoices are reproduced bellow for further reference : - 4.4 On perusal of these invoices it is evident that the service provider is a registered service provider, registered with the department and has issued the invoices to the appellant indicating the amount of service tax, educations cess and higher education-cess. In the education guide issued by the revenue following has been stated : "10.1.2 What does a service provider need to indicate on the invoice when he is liable to pay only a part of the liability under the partial reverse charge mechanism? The service provider shall issue an invoice complying with Rule 4A of the Service Tax Rules 1994. Thus the invoice shall indicate the name, address and the registration number of the service provider; the name and address of the person receiving taxable service; the description and value of taxable service provided or agreed to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be changed at the end of the recipient. In case of Pacific Exports [2013 (13) STR 41 (T-Ahmd)] Ahmedabad bench has held as follows: "3.....Further, what is required to be examined is as to whether service tax was paid under the category of Port services and not under the relevant head, or not. It is a settled law that re-classification of the services cannot be done at the recipient's end......" 4.6 Reverse charge mechanism under Service Tax was introduced w.e.f 01-01-2005 vide Notification No. 36/2004-ST and with effect from 01-07-2012 a new mechanism of reverse charge (RCM) and partial reverse charge or we can call it joint charge (PRCM/JCM) was introduced vide Notification No. 30/2012-ST which was further amended by Notification No. 45/2012-ST, 10/2014-ST and 7/2015-ST. Power was drawn from Section 68(2) of Finance Act, 1994, to mainly ensure more tax compliance as it was difficult to collect service tax from various unorganized sectors. In any case this is not for charging taxes twice on the same transaction. Board has circular No 51/13/2002-ST dated 07.01.2003 clarified as follows: "2. The matter has been examined in the Board. It is hereby....
X X X X Extracts X X X X
X X X X Extracts X X X X
....C. vide Circular No. 341/18/2004 had clarified that the reverse charge mechanism should not lead to double taxation; in other words, once the tax liability is discharged regardless of the persons who discharge, the assessee cannot be asked to pay the tax again." Speed and Safe Courier Service [2010 (18) STR 550 (Ker) ] ".....In terms of Section 67, the entire amount collected from the customers for rendering courier service is subject to tax at the hands of agent/franchisee. In our view, if a service falls under two heads, there is no provision in the Finance Act, 1994 to tax the very same service charges twice under two heads. In this case, what was done is double assessment on part of the service charges collected, for rendering courier service at the hands of the appellant...." Geeta Industries P Ltd [2011 (22) STR 293 (T-Del)] "4. There is no dispute that service in question has suffered tax. The only dispute is the person who shall pay the service tax. When the treasury has not been affected by virtue of collection of service tax from the service provider as is the case of the Revenue and there is no legal infirmity in the decision of the le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther demand exist and the same cannot be recovered. 5. Accordingly, the impugned order is set aside. Appeal is allowed. ( Pronounced in the open court on 11. 09. 2024 ) ============= Document 1 SUPERWELL SERVICES 3, VINOBHA PURI, LAJPAT NAGAR-II, NEW DELHI-110024 PH : 46072337. E-mail : - UKAS IGS 250 INVOICE Ma SAMSUNG INDIA FLEC PVT. LTD. Inv No. : NO 13799 HMP PRODUCTION B-I. SECTOR-81. PHASE-II NOMDA (UP)-201305 PO No .: Inv.Date : 06-Jul-2012 Invoice for the Month of June 2012 Site At : NOIDA FOR PROVIDING MANPOWER CONSULTANCY :# RESPECT OF PROVIDING ASSEMBLING SERVICES FOR THE MONTH OF JUNE-2012 1792584.00 Togn Sub Total 12.00 Service Tax % 215110.00 4302.00 Edu. Cess % 2.00 ANEPSI350E P* * No. -- H&S Edu. Cess % 1.00 2151.00 S .. .. De Tax No. - ANEPS1350EST001 TWENTY LAC FOURTEEN THOUSAND ONE HUNDRED FORTY SEVEN ONLY Grand Total 2014147.00 E.& O.E. (i) In case no dispute is received within 15days, the invoice will be deemed to be accepted. (11) Payment to be made strictly be Account Payee's Cheque/Demand Draft. (iii) Subject to Delhi Jurisdiction. CIAELECTRO ....