TaxTMI 
TaxTMI 
2026 (8) TMI 159
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....nce with the provisions of Finance Act, 1994, by holding Service Tax Registration No. AAGCS7146CST002. During audit of their records for the period 2014-15 to 2016-17, it was observed by the department that the appellant had received 'legal services' from advocates. The department had noticed that as per Section 68(2) of the Finance Act, 1994 read with Notification No. 30/2012-S.T. dated 20.06.2012, the liability to pay service tax in respect of legal services is on the service recipient i.e., the appellant company. However, despite this clear legal position, the appellant had failed to discharge the service tax liability on such services. Accordingly, a show cause notice dated 13.11.2009 was issued and the original authority had confirmed the service tax demand along with interest and also imposed penalty on the appellant vide Order-in-Original dated 28.02.2023. In an appeal filed by the appellant, the learned Commissioner of Customs (Appeals) vide Order-in-Appeal dated 20.07.2022, which is impugned herein, had upheld the confirmation of adjudged demands and rejected the appeal filed by the appellant. Feeling aggrieved with the impugned order, the appellant had filed this appeal b....
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.... to the relevant provisions of the Finance Act, 1994 and the relevant notification dated 20.06.2012 which are extracted and given below: Notification No.30/2012-S.T. dated 20.06.2012 "In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of : (i) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2012-Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 213(E), dated the 17th March, 2012, and (ii) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2004-Service Tax, dated the 31st December, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 849(E), dated the 31st December, 2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes o....
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....e and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely :- TABLE Sl. No. Description of a service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service 1. in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business Nil 100% xx xxx xxx xxx 5. in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services Nil 100% xx xxx xxx xxx Explanation-I. - The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification. Explanation-II. - In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method ....
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....e not already been paid by the assessee at the spot, demand notices are issued by the department for their recoveries. EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of receipt and expenditure of the Government of India. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by CERA audit party to point out the deficiencies, leakage of revenue and non recoveries of dues by the Central Excise Department. Therefore, it cannot be said that only because audit party had found some credit availed as inadmissible, suppression of fact is made out. It cannot also be established that appellant had any malafide intention to suppress its duty liability from the department..." 9.6 Further, I also find that the Co-ordinate Bench of the Tribunal in the case of Indus Valley Partners (India) Limited (supra), dealing with issue revenue neutrality in respect of payment of service tax on reverse charge mechanism on the basis of notification dated 20.06.2012, has held that no service tax demand is sustainable. The re....