2011 (7) TMI 471 - AT - Service Tax

Demand, interest and penalty - However, it is their contention that commission received even prior to 10.9.2004 has been included in the demand - It is their further contention that they are not liable to pay service tax on an amount of Rs.1,92,316/- paid towards road tax, insurance etc. under instructions of customers and reimbursed to them - Thus, the authorities below has considered this submission that even amounts of commission received prior to 10.9.2004 having been included in the demand - herefore, set aside the impugned order and remit the case for fresh decision to the adjudicating authority before whom all issues are left open for fresh decisin.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants in a service tax case. The demand of Rs.2,04,000/- along with interest and penalty was challenged. The tribunal found that commission received before 10.9.2004 was wrongly included in the demand. The case was remitted back for a fresh decision, allowing the appellants a reasonable opportunity to be heard. The appeal was allowed by way of remand.