Prasar Bharati Cannot Retain Service Tax Collected From Customers when no tax was actually chargeable

Prasar Bharati (Broadcasting Corporation of India) Vs Commissioner of Service Tax Delhi (CESTAT Delhi) In the present case, it is true that no service tax was chargeable on the activity of the appellant, viz., carrying the advertisements in its broadcast and telecast. Therefore, the Government cannot collect service tax. It is also true that Section 73A(2) which mandated that any person who collects any amount as representing service tax to deposit it with the Government also did not exist at the relevant time. Thus, the Government had no authority to demand the amount. However, it is equally ...