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TMI Blog2018 (6) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... vice’ would become liable only if the service is rendered in relation to the business of the recipient - In the present case, the appellant, as a contractor, has engaged in collecting statutory levies on behalf of the Government department (CTD)/ statutory authority (NHAI) neither of whom are engaged in business - the levy of Service Tax cannot be sustained on the Commission retained by the appellant. Activity of toll collection - Held that:- It is also fairly well settled that no Service Tax can be levied on such an activity as held by the Tribunal in the case of Commissioner v/s Intertoll ICS [2011 (5) TMI 257 - CESTAT, NEW DELHI], where it was held that N/N. 13/2004 specifically exempts the service tax liability on such services of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contractor to whom the task of collection of commercial tax was outsourced. The appellant successfully participated in the bid invited by the above agencies and was awarded the right to collect toll/ royalty/ commercial tax. For the grant of such right, the appellant agreed to pay the bid amount in lump sum. In exercise of the Right so acquired, the appellant collected the toll/royalty/ commercial taxes from the users of highway/ quarry license holders/ assessee who is liable to pay VAT. The amount payable to NHAI/DMG/CTD for grant of such right was firm and any loss/ profit arising out of such collection was to the account of the appellant. Revenue was of the view that in cases where the actual collection was more than the amount paid to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a series of decisions in which toll collection has been held to be not liable to payment of Service Tax. Some of the decisions are listed below:- a. Intertoll Indi Consultants (P) Ltd v. Commissioner, 2011 (24) STR 611 (Tri-Del) b. Commissioner v. Intertoll ICS CE Conso MP Limited, 2013 (31) STR 477 (Tri-Del) c. Sukhmani Society for Citizen Services v. Commissioner, 2017 (47) STR 172 (Tri-Chan) d. Commissioner v. Ideal Road Builders Private Ltd, 2017-TIOL-3923-CESTAT-MUM iii. The Ld. Advocate also submitted that the appellant will be entitled to the exemption under Notification No. 13/2004-ST dated 10/09/2004 which has exempted services provided by any person to the Government of a State in relation to collection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person- i. Deals with goods or services or documents of title to such goods or services; or ii. Collects payment of sale price of such goods or services; or iii. Guarantees for collection or payment for such goods or services; or iv. Undertakes any activities relating to such sale or purchase of such goods or services; The Commissioner has taken the view that the appellant will be covered within the above definition since they are providing the service of collection of tax even if it may not be a taxable service. He is of the view that such services have been provided to the Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant are auxiliary to their business. As held by the Tribunal above, Service Tax under the category of Business Auxiliary Service would become liable only if the service is rendered in relation to the business of the recipient. In the present case, the appellant, as a contractor, has engaged in collecting statutory levies on behalf of the Government department (CTD)/ statutory authority (NHAI) neither of whom are engaged in business. Secondly, we are of the view that the levy of Service Tax cannot be sustained on the Commission retained by the appellant. 7. In respect of the activity of toll collection, it is also fairly well settled that no Service Tax can be levied on such an activity as held by the Tribunal in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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