The Supreme Court of India upheld the order of the Customs and Excise Service Tax Appellate Tribunal (CESTAT) as no service tax demandable on additional service of mounting of printed material or boards already paid.
The Central Excise Department challenged the judgment and order dated passed by the Customs, Excise and Service Tax Appellate Tribunal in Order in Service Tax Appeal No.10185 of 2019 which was in favour of respondent M/S Shah Publicity.
The Tribunal’s end conclusion does not suffer from any infirmity. However, while recording the finding, it was observed by the court that the Tribunal just omitted to mention a couple of lines regarding the admitted case that the respondent had been paying service tax on any additional service provided regarding the mounting of printed material or boards on which they had paid service tax, no further consideration would have been required.
Taxable services are specified in Section 65(105) of the Finance Act,1994. Generally, the liability to pay service tax has been placed on the ‘service provider’. However, in respect of the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as may be prescribed at the rate specified in Sec.66 of the Act and all the provisions of Chapter-V shall apply to such person as if he is the person liable for paying the service tax. There is no provision to demand service tax additionally once the assessee already paid it.
A two-judge bench comprising Justice Vikram Nath and Justice Ahsanuddin Amanullah didn’t find any infirmity in the final order of the Tribunal and dismissed the appeal.
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