Balaji Travels Vs Commissioner of CGST & Central Excise (CESTAT Delhi)
CESTAT Delhi held that rent-a-cab operator [service provider] is not liable to pay service tax in terms of Notification No. 30/2012. Notably, service tax is already discharged by service recipient under Reverse Charge Mechanism and hence the same cannot be again demanded from service provider.
Facts- The appellant is registered with the service tax department for providing taxable services under the category of rent-a-cab operator services. While cross verifying the gross receipt of ITR/26AS vis-à-vis ST-3 the values reflected in ST-3 returns, the department got to know that the appellant had received Rs. 26,99,488/- as income during the relevant period of financial year 2015-2016. From the further scrutiny of documents it was noticed that the order value/the invoice value is inclusive of service tax i.e. the appellant has received service tax from GAIL. Based on these observations the contentions of the appellant in their reply dated 22.6.2020 that 100% service tax payment is made by service receiver, was opined contrary to the above observations.
The department alleged that service tax amounting to Rs. 3,95,426/- is short paid by the appellant. Thus, the show cause Notice was served upon the appellant. The demand was initially confirmed vide Order-in-Original dated 28.1.2022. The appeal against the said order has been rejected vide the impugned order-in-appeal. Being aggrieved, the appellant is before this Tribunal.
