2018 (6) TMI 330 – CESTAT MUMBAI – TMI – Reverse charge mechanism – manpower supply agency services – liability of service tax – Held that:- The service providers have discharged the entire service tax due for the services provided is not controverted by Revenue in the grounds of appeal in any form – In the absence of any evidence to controvert the factual finding that the amount of service tax due to the Government is discharged by the service providers, there is no hesitation to hold that the impugned order is correct and legal, and does not require any interference – appeal dismissed. – ST/87990/2017 – A/86110/2018 – Dated:- 20-3-2018 – Shri M V Ravindran, Member (Judicial) Shri D. Shinde, Assistant Commissioner (AR) for appellant None
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. 30/2012-ST dated 20/06/2012 it is the duty cast upon the recipient for discharge of service tax liability under reverse charge mechanism for the services received for 'manpower supply agency services' and the tax liability has to be on the 75% of the value of the services rendered. It is his submission that the respondent has not discharged the same and the tax liability needs to be fastened on them along with interest and penalty. 5. On careful consideration of the submissions made, I find that the first appellate authority in the impugned order has in paragraph 28 and 30 categorically recorded the finding which is reproduced. "28. Whereas, the appellant has submitted that the Man Power Supply Agencies had paid service tax o
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dy paid by the service providers and hence demanding the same from the appellant again would tantamount to double taxation which is not permissible in view of the law settled by the Hon'ble Apex Court as mentioned above. I also observe that the Reverse charge mechanism was just introduced from 01.07.2012 and it did take some time for the appellants as well as their vendors to take note of the same and understand this new form of levy. Therefore the instant demand of Service tax as per Annexure-A of the instant SCN appears to be not sustainable. Since the basic demand does not sustain there shall be no question of interest and penalty under Section 78 ibid. However, it is observed that in the entire chain of events, there is a definite v
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