Levy of service tax on TDS portion borne by appellant not sustainable

Indian Additives Ltd. Vs Commissioner of GST (CESTAT Chennai) The appellants are engaged in the manufacture of additives. They entered into technical assistance agreements with M/s. Chevron Oronite Company LLC, USA. As per the agreement, the appellant is paying royalty to the foreign company on the basis of net sales of the products manufactured by them. Since the foreign company does not have any establishment in India, the appellant registered themselves with the Service Tax Department for payment of service tax under reverse charge mechanism. During the scrutiny of accounts, it was noted th...