Service Tax
TRT-2025-
Cestat New Delhi
Date:-19-03-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 19 March 2024
Parties: Rajasthan State Road Transport Corporation Vs Commissioner of Central Excise and Service Tax, Alwar
Facts –
- The Appellant, Rajasthan State Road Transport Corporation, was found to be receiving buses and taxies on hire from various parties and thereby were availing the rent-a-cab service, also receiving services provided by individual advocates or firm of advocates by the department.
- A show cause notice was issued on the ground that service tax for the period from 01.07.2012 to 31.03.2015 with respect to the both the above services was not paid by the appellant.
Issue –
- Whether the appellant is liable to discharge service tax for receiving buses and taxis on hire and legal consultancy services?
Order –
- The Tribunal observed that though in the present case the appellant is alleged to be the recipient of rent-a- cab service and is held liable under reverse charge mechanism (RCM) Notification No. 25/2012 dated 20.6.2012 exempts State Transport Undertaking from any tax liability. Hence it was held that appellant is not liable to service tax for receiving buses and taxis on hire.
- Since the appellant is the creature of statute and is discharging a public function without any profit motive and in view of Notification No. 25/2012, there arises no tax liability while rendering any service to Government authorities, the Tribunal held that the appellant cannot be made liable to tax not even under RCM for receiving legal consultancy services.
- There is no evidence found on record proving such intent / mensrea with the appellant to evade payment of service tax. The appellant have already been held not liable to pay the amount confirmed. Resultantly held that the department has wrongly invoked the extended period of limitation while issuing Show Cause Notice.
- Consequent thereto the appeal is allowed.
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