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TMI Blog2024 (9) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... 25% of the taxable value charged by him. Service Tax on the remaining 75% of taxable value of the service, registered as corporate, engaged in receiving 'Man Power Supply Service' from proprietor/ Partnership Firm shall be liable to pay service tax. Accordingly, Service Tax on the 75% of the taxable value was demanded from the appellant being service recipient, despite the fact that the service provider has paid Service Tax on the 100% of the value of service received by the appellant. 2. Shri S Suriyanarayanan, Learned Counsel appearing on behalf of the Appellant at the outset submits that even though as per the legal provision the appellant was supposed to pay Service Tax on the 75% of the taxable value of 'manpower supply service' but in the fact that the service provider instead of paying service tax on 25% on the value, he has admittedly discharged the service tax on 100% value. Therefore, once the entire Service Tax was discharged no further Service Tax can be recovered from any other person. He placed reliance on the following judgments:- Hindustan Oil Exploration Co. Ltd. Vs. Commr. of S.T. Chennai- 2012 (25) 454 (Tri.-Chennai) Kakinada Seaports Ltd. Vs. CCE, ST & CUs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant to the service provider is well established by the invoices which has been produced before us and were also produced before the Original Adjudicating Authority. Some sample invoices are reproduced bellow for further reference : - 4.4 On perusal of these invoices it is evident that the service provider is a registered service provider, registered with the department and has issued the invoices to the appellant indicating the amount of service tax, educations cess and higher education-cess. In the education guide issued by the revenue following has been stated : "10.1.2 What does a service provider need to indicate on the invoice when he is liable to pay only a part of the liability under the partial reverse charge mechanism? The service provider shall issue an invoice complying with Rule 4A of the Service Tax Rules 1994. Thus the invoice shall indicate the name, address and the registration number of the service provider; the name and address of the person receiving taxable service; the description and value of taxable service provided or agreed to be provided; and the service tax payable thereon. As per clause (iv) of sub-rule (1) of the said rule 4A „the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows: "3.....Further, what is required to be examined is as to whether service tax was paid under the category of Port services and not under the relevant head, or not. It is a settled law that re-classification of the services cannot be done at the recipient's end......" 4.6 Reverse charge mechanism under Service Tax was introduced w.e.f 01-01-2005 vide Notification No. 36/2004-ST and with effect from 01-07-2012 a new mechanism of reverse charge (RCM) and partial reverse charge or we can call it joint charge (PRCM/JCM) was introduced vide Notification No. 30/2012-ST which was further amended by Notification No. 45/2012-ST, 10/2014-ST and 7/2015-ST. Power was drawn from Section 68(2) of Finance Act, 1994, to mainly ensure more tax compliance as it was difficult to collect service tax from various unorganized sectors. In any case this is not for charging taxes twice on the same transaction. Board has circular No 51/13/2002-ST dated 07.01.2003 clarified as follows: "2. The matter has been examined in the Board. It is hereby clarified that any service (transaction) can be taxed only once, even if it appears to fall under two or more categories. Therefore, before levying servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he persons who discharge, the assessee cannot be asked to pay the tax again." Speed and Safe Courier Service [2010 (18) STR 550 (Ker) ] ".....In terms of Section 67, the entire amount collected from the customers for rendering courier service is subject to tax at the hands of agent/franchisee. In our view, if a service falls under two heads, there is no provision in the Finance Act, 1994 to tax the very same service charges twice under two heads. In this case, what was done is double assessment on part of the service charges collected, for rendering courier service at the hands of the appellant...." Geeta Industries P Ltd [2011 (22) STR 293 (T-Del)] "4. There is no dispute that service in question has suffered tax. The only dispute is the person who shall pay the service tax. When the treasury has not been affected by virtue of collection of service tax from the service provider as is the case of the Revenue and there is no legal infirmity in the decision of the learned Commissioner (Appeals) there cannot be double taxation of same service. But it is fact that realization of the service tax has been made from the service provider while the recipient of service of GTA ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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