2010 (4) TMI 202 - AT - Service Tax

Liability of service tax- prior to incorporation of company- The appellants challenge the order of the Commissioner (Appeals) holding that they as a private limited company are liable to pay service tax for services rendered by the partnership firm M/s. S.S. International prior to it being incorporated as a private limited company and the demand of interest and imposition of penalty. Held that- accept the contention of the assessees that they are not liable to pay any service tax leviable against M/s. S.S. International and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants, a private limited company, stating they are not liable to pay service tax for services rendered by a partnership firm prior to its incorporation as a private limited company. The tribunal accepted the evidence provided by the appellants regarding the change of name and incorporation, and allowed the appeal.