2010 (8) TMI 135 - HC - Service Tax

Service Tax Liability- Department treated the assessee as a service provider and imposed service tax. Assessee s stand was that it was a joint venture and not a service provider. Tribunal and court directed the department to consider the material on this aspect and examine the relationship.

Summary

Issues:
Appeal under Section 35-G of Central Excise Act against Tribunal's order on service tax liability and joint venture partnership.

Analysis:
The appeal was filed by the revenue under Section 35-G of the Central Excise Act against the order of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. The substantial questions of law proposed in the appeal included whether a joint venture partnership existed between the respondent and IB&W, and if the respondent could avoid tax liability due to different services provided. The department had demanded service tax from the respondent, rejecting their claim of being joint venture entities with the service provider. The Tribunal remanded the matter to reexamine the relationship between the respondent and the service provider, AK & I Advertisement Pvt. Ltd.

The High Court, comprising Hon'ble Mr. Justice Adarsh Kumar Goel and Hon'ble Mr. Justice Ajay Kumar Mittal, heard the arguments presented by the appellant's counsel. The Court noted that the matter had been remanded solely to investigate the relationship between the respondent and the service provider, AK & I Advertisement Pvt. Ltd. Consequently, the Court concluded that no substantial question of law arose from this issue. As a result, the appeal was dismissed by the High Court.

In summary, the High Court's judgment upheld the decision of the Tribunal to remand the case for further examination of the relationship between the respondent and the service provider. The Court found no substantial legal question arising from this specific aspect, leading to the dismissal of the appeal filed by the revenue under Section 35-G of the Central Excise Act.