Case Law Details
Harjas Associates Private Limited Vs Commissioner, Customs & Central Excise & Service Tax (CESTAT Delhi)
It is not the case of the department that the appellant though has collected the service tax but not paid the same to the government. The demand confirmed in the impugned order pertains to GTA services provided by the appellant to the proprietorship concern because according to the authorities below, since the persons to whom GTA service was provided by the appellant were proprietorship concerns, Reverse Charge Mechanism (RCM) is not applicable to them and the appellant is liable to pay service tax.
The appellant disputed the demand since according to them, such proprietorship concerns are the factories registered under the Factories Act/ Rules and therefore as per section 68(2) of the Act r/w Notification 30/2012-ST dated 20.6.2012, the total service tax was payable by the recipient of the GTA services, who made payment of freight to them. The certificates, issued by the respective State Governments, to the effect that the said proprietary concerns are registered as Factories have also been submitted by the Appellant before the authorities concerned and before me as well.
A perusal of the same will lead to inevitable conclusion that the proprietary concern to whom GTA services were provided by the appellant, were authorized dealers of Piggio Auto and were registered as factories therefore in view of Section 68(2) ibid read with Notification (supra) those they are liable to pay service tax under reverse charge mechanism.
Therefore the demand for the period April, 2016 to June, 2017 is also liable to be set aside. Although the appellant has also raised the issue of threshold exemption under notification no. 33/2012-ST dated 20.6.2012 but as I have already held that since those proprietary concerned have been registered as factories, they are liable to pay service tax under reverse charge mechanism, therefore I am not deciding the issue of threshold exemption.
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