Service Tax not leviable on Taxes/Toll collected-on behalf of Government

Mateshwari Indrani Contractors Pvt Ltd Vs C.C.E. & S.T. (CESTAT Delhi)

Service Tax under the category of ‘Business Auxiliary Service’ would become liable only if the service is rendered in relation to the business of the recipient. In the present case, the appellant, as a contractor, has engaged in collecting statutory levies on behalf of the Government department (CTD)/ statutory authority (NHAI) neither of whom are engaged in business. Secondly, we are of the view that the levy of Service Tax cannot be sustained on the Commission retained by the appellant.

In respe

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