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TMI Blog2013 (2) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... and remitted to the Government. When the amount is collected for the provision of services, the total compensation received should be treated as inclusive of service tax due to be paid by the ultimate customer of the services unless service tax is also paid by the customer separately. So considered, when no tax is collected separately, the gross amount has to be adopted to quantify the tax liability treating it as value of taxable service plus service tax payable also this principle has been legislated with effect from 18-4-2006 in Section 67(2) of the Finance Act, 1994 that where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h M/s. Torrent Power Limited who submitted copies of contract made with the appellant and bill wise amount charged by the appellant for providing vehicles to M/s. Torrent Power Limited. On the basis of the documents received, it was revealed that the appellant provided vehicles such as Maruti Van, Tata Sumo, Ambulance and loading vehicles such as Mini Trucks etc. to M/s. Torrent Power Limited, since April 2006. Statement of Shri Hetal Govindbhai Haribhai Patel, the proprietor of the appellant s firm, was recorded wherein he stated that he owns five vehicles and rest of the vehicles were taken from relatives and was collecting the payment, as per the contract, for them from M/s. Torrent Power Limited. He accepted the fact that this income wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities have issued the show cause notice on the figures which have been worked out by them but not considered the cum duty benefit that may arise to the appellant in the entire demand. He would draw my attention to the findings recorded by the first appellate authority, wherein the first appellate authority has accepted that the appellant has not shown the service tax in their bills, which according to him, would tantamount to receipt of lump-sum amount inclusive of service tax. It is his submission that the amounts confirmed by the adjudicating authority as service tax liability is Rs. 33,929/- which is the differential amount calculated by them after arriving at the service tax liability, considering the amounts received by M/s. Torrent Po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as done so after being pointed out on the services rendered by him as Rent-a-cab Services . It is also on record that the agreement entered by the appellant with M/s. Torrent Power Limited does not indicate whether the amount which has been paid by the service recipient to the appellant is inclusive or exclusive of service tax liability. I find that the issue now stands settled by the Division Bench in the case of Advantage Media Consultant (supra) wherein the Bench has recorded as under:- 3. Service tax is an indirect tax. As per this system of taxation, tax borne by the consumer of goods/services is collected by the assessee (manufacturer/service provider) and remitted to the Government. When the amount is collected for the provision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the service recipient and the same being differential amount, which has been confirmed by the lower authorities, I hold that the impugned orders are liable to be set-aside and I do so. 9. Impugned orders to the extent they confirm the differential service tax liability of Rs. 33,929/- along with interest are set-aside. As I have already set aside the service tax demand of Rs. 33,929/-, the consequent penalties imposed by the lower authorities also set aside, as when there is no demand of service tax, the question of penalty does not arise. Accordingly, the penalties imposed under Section 76 and 78 are set-aside. Appeal is allowed and impugned order is set-aside to the extent as indicated hereinabove. (Dictated and pronounced i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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