2018 (5) TMI 403 - AT - Service Tax

Classification of services - respondent being Octroi Agents engaged in compliance of Octori duty payment on behalf of the various parties - whether taxable under the category of Business Auxiliary Service or otherwise? - Held that - this Tribunal in various decisions consistently held that the said service provided by the octroi agents is not liable to service tax under business auxiliary service - appeal dismissed - decided against Revenue.

Summary

Issues Involved:
Whether Octroi Agents providing compliance of Octroi duty payment on behalf of clients are covered under Business Auxiliary Service and liable to pay service tax.

Analysis:
The issue in this case revolves around determining whether Octroi Agents, engaged in compliance of Octroi duty payment on behalf of various clients, fall under the purview of Business Auxiliary Service and are thus subject to service tax liability. The Revenue contended that the service provided by the respondents, for which they receive a service charge, falls within the ambit of Business Auxiliary Service and is therefore taxable. On the other hand, the respondents argued that their activity does not align with any of the specified clauses of Business Auxiliary Service, hence they should not be liable for service tax. The respondents relied on previous tribunal judgments to support their position, emphasizing that the issue has been settled in their favor in previous cases.

Upon careful consideration of the arguments presented by both parties and a thorough review of the records, the Tribunal examined whether the service provided by Octroi Agents in ensuring compliance with Octroi duty payment to the Government exchequer on behalf of clients falls within the definition of Business Auxiliary Service and attracts service tax liability. The Tribunal noted that previous judgments consistently held that the service provided by Octroi Agents does not attract service tax under Business Auxiliary Service. Citing the precedent set by previous decisions, the Tribunal upheld the impugned order and dismissed the appeals, ruling in favor of the respondents. This decision underscores the consistent interpretation of the law regarding the tax liability of Octroi Agents providing services related to Octroi duty payment.