2009 (4) TMI 380 - AT - Service Tax

Valuation of taxable services- the appellants are letting out their facilities not only to the people for marriages but also let out to several N.G.Os at a nominal price. He also states, that they have not recovered service tax separately for the impugned services. Held that- since they have not recovered service tax separately from their customers, value received by them should be taken as cum-tax value and tax should be re-determined. Accordingly, impugned order is set aside. Matter is remanded back to the original authority for re-calculation of the demand. Appeal is allowed by way of remand.

Summary

The Appellate Tribunal CESTAT, New Delhi found the appellants liable to pay service tax for letting out facilities. However, since they did not recover service tax separately, the tax should be calculated based on the cum-tax value. The impugned order was set aside, and the matter was remanded for re-calculation of the demand. Interest and penalty issues were left for the original authority to determine. The appeal was allowed by way of remand.