2020 (12) TMI 1248 - HC - Service Tax

Levy of service tax - commission paid to the Petitioner as foreman of chit fund business - period from April 2014 to March 2015 - HELD THAT - The Hon'ble Supreme Court of India in UNION OF INDIA AND ORS. VERSUS M/S. MARGADARSHI CHIT FUNDS (P) LTD. ETC 2017 (7) TMI 224 - SUPREME COURT has held that service tax cannot be levied on the foreman of chit fund business for the period from 15.06.2007 to 14.06.2015. The Respondent shall not be entitled to recover the service tax demanded from the Petitioner in the impugned order - Petition disposed off.

Summary

Issues:
Challenge to Order-in-Original levying service tax on commission paid to foreman of chit fund business for a specific period.

Analysis:
The Writ Petition contested the Order-in-Original levying service tax on the commission paid to the Petitioner as a foreman of a chit fund business for the period from April 2014 to March 2015. The Petitioner's Counsel highlighted a Supreme Court decision stating that service tax cannot be imposed on foremen of chit fund businesses for a specific period. The Court referred to the Supreme Court's ruling, which clarified the historical background of service tax applicability to chit fund businesses during different time frames. It was emphasized that service tax was not payable for the period in question. Consequently, the Court set aside the impugned order, ruling in favor of the Petitioner based on the Supreme Court's authoritative pronouncement. The Respondent was barred from recovering the service tax demanded from the Petitioner. The Writ Petition was allowed on these grounds, and the connected Miscellaneous Petition was closed without costs.