04 - 8 Digit Accounting Codes

Yes. In the case of M/s Katrina R Turcotte [2012 (12) TMI 579 - CESTAT Ahmedabad], it was held that the allegation of the revenue that service has been rendered by appellant but has not discharged the service tax liability is not sustainable as per section 65(7) of the Finance Act, wherein the ‘assessee' means a person liable to pay service tax and includes his agent. In this case, appellant has appointed M/s Matrix as her agent to discharge her service tax liability on her behalf and same has been discharged by M/s Matrix.

It was held that the appellant has discharged the service tax liability through her agent on the activity in question undertaken by her, therefore, the proceedings in this matter by way of show-cause notice and adjudication were not warranted.

Agent discharge of service tax liability affirmed: agent payment treats provider's obligation as discharged, barring further adjudication. The service provider's tax obligation may be discharged by an appointed agent because section 65(7) of the Finance Act defines the assessee to include an agent; when an agent pays the service tax on the provider's behalf, the provider's liability is treated as discharged and subsequent show-cause adjudication is not warranted.