Service Tax to be paid on income received under business ancillary services

Natural Petrochemicals Pvt Ltd Vs C.C.E. & S.T.-Rajkot (CESTAT Ahmedabad)

The CESTAT, Ahmedabad in the case of M/s. Natural Petrochemicals Private Limited vs. C.C.E & S.T, Rajkot [Final Order No. A/12059/2023 dated September 18, 2023] has ruled that the assessee was aware of the chargeability of service tax upon the commission received under the head of Business Ancillary Services (BAS) and had deliberately never disclosed the same in the monthly returns, thus the financial hardship faced by the assessee is no ground for non-payment of Service Tax, hence dismissed the appeal.

Facts:

M/s. Natural Petrochemicals Private Limited (Appellant) is engaged in providing services of the Goods Transport Agency (GTA) and BAS.

Upon Investigation, the Commissioner of Central Excise and Service Tax (Respondent) found that the Appellant had received a commission income from M/s Gopal Enterprise and M/s Galaxy Enterprise amounting to Rs. 78,08,192/- and Rs. 5,30,085/- respectively. Thereby, the Appellant was inquired about the chargeability of Service Tax on the said commission received under the head of BAS.

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