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2016 (2) TMI 611 - AT - Service TaxBusiness Auxiliary Service - Activity of maintaining complete Toll Operation, supply of Man Power and maintenance of Toll Collection System including Plaza maintenance etc. - in the case of Swarna Tollway (Pvt.) Ltd Vs CCE Guntur 2011 (5) TMI 192 - CESTAT, BANGALORE , the Tribunal allowed the appeal of the Assessee, on the identical issue, where the toll collection is related to the National Highway Authority of India. The Tribunal consistently viewed that the National Highway Authority of India cannot be treated as the customers of the Appellant. It is also observed that the NHAI is not running any business. Hence, we do not find any force in the submissions of the learned Authorised Representative for the Revenue. It is seen that the facts of the present case are squarely covered by the decisions of the Tribunal in the case of Intertoll India Consultants (P) Ltd 2011 (5) TMI 257 - CESTAT, NEW DELHI and Intertoll ICS CE CONS O & MP Ltd 2013 (12) TMI 731 - CESTAT NEW DELHI . - Demand set aside - Decided in favor of assessee.
Issues:
- Demand of Service Tax under Business Auxiliary Service for a specific period. - Applicability of case laws on mode of payment. - Interpretation of Business Auxiliary Service definition. - Consideration of toll fee payers as customers. - Tax liability on collection of toll on behalf of another entity. Analysis: 1. Demand of Service Tax under Business Auxiliary Service: The case involved an agreement between the Appellant and the National Highway Authority of India (NHAI) for various services, leading to the demand of Service Tax, interest, and penalty for a specific period. The Adjudicating authority and the Commissioner (Appeals) upheld the demand, which was challenged in the present appeal. 2. Applicability of Case Laws on Mode of Payment: The Appellant cited various case laws related to Business Auxiliary Service to support their argument. The Revenue, however, contended that the mode of payment in those cases differed from the present case, highlighting discrepancies in the payment structure. The Revenue also emphasized the availability of alternative routes for commuters in contrast to the cases cited by the Appellant. 3. Interpretation of Business Auxiliary Service Definition: The Tribunal analyzed the definition of Business Auxiliary Service, particularly focusing on customer care services provided on behalf of the client. The Tribunal examined the nature of services rendered by the Appellant and whether they fell within the scope of Business Auxiliary Service, both pre and post a specific date. 4. Consideration of Toll Fee Payers as Customers: A crucial aspect of the judgment involved determining whether the individuals paying toll fees could be considered customers of the Appellant or the NHAI. The Tribunal referenced legal definitions of a customer and concluded that toll fee payers did not qualify as customers based on the absence of repeated dealings or business relationships. 5. Tax Liability on Collection of Toll on Behalf of Another Entity: The judgment addressed the collection of toll by the Appellant on behalf of another entity and examined the tax implications of such collections. It referenced specific notifications exempting service tax liability on certain duties and taxes collected by government bodies, providing clarity on the tax treatment in such scenarios. 6. Judicial Precedents and Tribunal Decisions: The Tribunal referred to previous judgments, such as Commissioner of Service Tax Delhi Vs Intertoll ICS SE CONS O & MP Ltd, and Swarna Tollway (Pvt.) Ltd Vs CCE Guntur, to support its decision. These precedents highlighted the non-commercial nature of NHAI and the inapplicability of Business Auxiliary Service in certain contexts, influencing the outcome of the present case. In conclusion, the Tribunal set aside the impugned order, allowing the appeal filed by the Appellant based on the detailed analysis of the issues related to Service Tax demand, interpretation of relevant laws, and the nature of services provided in the context of Business Auxiliary Service.
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