TaxTMI 
TaxTMI 
2026 (9) TMI 346
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....ainst the order dated 14.03.2024 passed by the Joint Commissioner and set aside the demand of service tax of Rs. 1,76,28,906/- of the total Rs. 2,03,56,222/- but upheld the demand of service tax of Rs. 27,27,316/-. There is no appeal by the Revenue against that part of the order which set aside the demand of service tax by the Revenue. Therefore, the dispute attained finality to that extent. 2. The appellant was registered with the service tax department for providing advertising agency services exigible to service tax under the Finance Act, 1994 [the Act] Gathering intelligence, the officers of the Anti Evasion Branch of the service tax Commissionerate invested the appellant and found that it had incurred various expenses for services r....
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....t and Form 26AS/Income Tax Returns. 7. In view of the above, the impugned order may be set aside and the appeal may be allowed. Submissions of the Revenue 8. Learned Authorized Representative for the Revenue vehemently supported the impugned order and asserted that as is evident from the impugned order as well as the synopsis submitted by the appellant in which the portions of the impugned order are reproduced, not only has the nature of service been determined, but it was classified and it was explained how it was chargeable to service tax under reverse charge mechanism under Notification No. 30/2012-ST. 9. The demand has been confirmed under reverse charge mechanism on the following expenses :- (a) Business promotion ....
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.... Legal Expense :- The appellant has submitted that the expenses incurred under Legal Expenses includes Advocate charges and Professional Fees, I find that the appellant has submitted copy of ledgers along with invoice /vouchers/bills in respect of professional charges which is not taxable under RCM. Only advocate fee amounting to Rs. 1,70,500/- is taxable under RCM. Hence, I hold that the appellant is liable to pay service tax of Rs. 21,074/- only under RCM on above said Legal expenses. Insurance :- The appellant has submitted that the expense incurred by them is the payment made to insurance company for insurance of office and motor vehicle. The appellant has enclosed copy of Motor insurance cover Note in support of their cl....
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.... Findings 14. I have considered the submissions advanced by both sides and perused the records. 15. The submission of the learned counsel for the appellant that the nature of services was not examined or classified by the Commissioner (Appeals) is factually wrong as is evident from the extract of the impugned order reproduced by the appellant in its own submissions. These pertain to business promotion expenses, conveyance expenses, legal expenses and freight expenses. The amount of service tax payable under each of these heads for each financial year was also computed as is evident from the impugned order, the order of the original authority, as well as the synopsis submitted by the appellant itself. The second argument of the appel....
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.... paid by it as service tax under reverse charge mechanism would have been available to the appellant as Cenvat credit. Therefore, it was a case where the appellant had to pay with one hand and could take credit with the other. The net effect of this would have been that the appellant's service tax liability under reverse charge mechanism would have increased and the appellant's liability under forward charge in cash would have reduced as part of the amount would have been paid through the Cenvat credit availed on the service tax paid under reverse charge. Therefore, the appellant could not have had an intent to evade payment of service tax. Extended period of limitation under the proviso to section 73 (1) of the Act can be invoked only if t....