Revenue Neutrality: No Extended Limitation & Service Tax Penalty – CESTAT

Indure Private Limited Vs Commissioner of Service Tax (CESTAT Delhi) Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has issued a nuanced ruling in the appeal filed by M/s The Indure Private Limited. While upholding the liability for service tax on “selling commission” paid to a foreign entity under the reverse charge mechanism, the Tribunal provided significant relief by setting aside the demand for the extended period of limitation, along with interest and penalties, on grounds of revenue neutrality. The appeal contested an order from the Commissioner, S...