TaxTMI 
TaxTMI 
2025 (6) TMI 186
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....issed the appellant's appeal. In the OIO, the Assistant Commissioner confirmed demand of service tax of Rs. 2,21,045/- and Rs. 1,75,155/- on the appellant under the proviso to section 73(1) of the Finance Act, 1994 [Finance Act] along with interest under section 75 of the Finance Act and imposed penalties under sections 77 and 78 of the Finance Act. 2. The appellant is registered with the service tax department and has been providing taxable services of insurance, transportation and weigh bridge. Its records for the period 2012-13 and 2013-14 (upto January 2014) were audited and it was found that the appellant had shown the following earnings in its audited balance sheets Year Income from insurance Income from weigh bridge Income f....
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.... The appellant obtained transit insurance for the goods from an insurance company and the premium which it paid to the insurance company was less than the amounts which it had collected towards insurance from its buyers. The difference is recorded in the books of account as 'insurance income'. 7. According to the Revenue, this amount received by the appellant falls under the category of 'Business auxiliary service' (BAS) till 30.6.2012 and will be a service not being under negative list with effect from 1.7.2012. 8. According to the appellant, the so called insurance income is the difference between what it paid to the insurance companies and what it collected from its buyers towards insurance. This is profit and is not an income on busin....
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....pugned order. 14. We agree with the learned counsel that the same activity of transportation cannot be treated as GTA service to charge service tax under reverse charge and also as BAS to charge service tax on forward charge basis. Since the appellant had paid service tax under reverse charge under GTA, no service tax on transportation can be charged treating it as BAS (upto 1.7.2012) and as service (after 1.7.2012). The demand on this count cannot be sustained. Income from weigh bridge 15. The appellant provided weigh bridge and collected amounts for it. The demand of service tax on this amount is on Business Support Service. 16. According to the appellant, providing a weigh bridge cannot be treated as Business Support Service. He plac....