Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Law/2016-17/3356

Can service tax on GTA services be paid through the transporter?

Case:- GANESH FOUNDRY (RAJ.) Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR-II

Citation:- 2016 (43) S.T.R. 308 (Tri. - Del.)

Brief Facts:-Appeal was filed against order-in-appeal dated 24-6-2009 which upheld the order-in-original dated 23-6-2009 in terms of which the appellants refund of Rs. 80,426 (Rs. 68,639/- service tax and Rs. 11,787/- interest) was rejected on the ground that the appellant was required to pay the said amount of service tax which it paid.

Appellant’s Contention:- The appellant contended that for the period 1-1-2005 to 31-10-2007 it paid service tax to the transporters which in turn would have paid it to the Government. Revenue during audit pointed out that in terms of Rule 2(1) (d) (v) of Service Tax Rules, 1994 the appellant was required to pay service tax on GTA service on the transport charges paid to the transporters and accordingly it paid the service tax of which the refund was sought on the ground that it was amounting to double payment.

Respondent’s Contention:- the respondent reiterated the submissions.

Reasoning of Judgment:-  They considered the contentions of the appellant. It was not in dispute that in terms of Rule 2(1)(d)(v) of Service Tax Rules, 1994 appellant was required to pay the impugned amount of service tax which it paid. It was called principle of law that tax is to be remitted by the person who is legally required to pay the same. The claim of the appellant that it paid the said amount of service tax to the transporter, even if true, is of no avail because the liability of the appellant would be discharged only if it paid service tax to the Government account. Thus the plea of the appellant that it had paid service tax to the transporters and therefore should not have been required to pay the same to the Government and therefore the amount it paid to the Government should be refunded is legally untenable. Accordingly, they did not find any infirmity in the impugned order.

Decision:-Appeal disallowed.

Comment – The gist of the case is that the service tax on Goods Transport Agency Services has to be paid by assessee to Government only under reverse charge mechanism and not through the transporter. Paying through the transporter shall not reduce assessee’s liability to pay under Reverse charge Mechanism and therefore his contention that he has paid tax twice was not justified. It is well settled principle that tax has to be paid in accordance with the legal provisions and to the person who is legally permitted which is clearly Government under Rule 2(1)(d)(v) of Service Tax Rules, 1994. Hence refund applied by him was held to be inadmissible.

Prepared by- Alakh Bhandari

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com