Service Tax
TRT-2025-
Cestat Chandigarh
Date:-31-10-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 31 October 2023
Parties: M/s Channel Management and Marketing, Chandigarh Vs The Commissioner of Central Excise, Chandigarh-I
Facts –
- The Appellant, M/s Channel Management and Marketing, engaged in the business of collection of all the fees/ dues payable to the T.V Channels by the cable operators as per contract, with their principals M/s Set Discovery Pvt. Ltd. (M/s SETD), on their sole cost and expense besides promoting and marketing on behalf of T.V Channels.
- It was alleged that the principals have discharged duty whereas the appellants were under obligation to discharge the same.
Issue –
- Whether the appellant is liable to discharge service tax where the principals have already discharged duty?
Order –
- The Tribunal observed that it is clear that the applicable service tax stands paid in the instant case, i.e. M/s SETD have discharged the service tax payable by the Agent. Thus payment of service tax into the Revenue Exchequer is not in dispute. Once service tax is paid, there is no loss to the revenue of the Government, the question as to who has paid the same, remains a procedural issue and thereto, an empty one.
- Further, the appellants have kept the Department informed of the fact that applicable service tax is being paid or has been paid by their principals i.e., M/s SETD. Therefore, there are cogent reasons for the appellant to believe that they are not obliged to pay service tax again; therefore, the ambiguity in the minds of the appellant is a bona fide one. Therefore, extended period cannot be invoked.
- Therefore, the appeal succeeds both on merits and limitation.
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