Service provider failed to take service tax registration under bona-fide belief that he was not liable for it and raised bill to service recipient. However, the service recipient charged service tax to his service recipient for the same service and same amount without adding any profit margin. e.g. A charged Rs.100/- to B without service tax for xyz service. In turn B charged Rs.100/- + service tax to C. B collected the service tax and paid to government with/without claiming cenvat. My query is, under such circumstances can service tax department recover service tax from A? WHAT REMEDY IS AVAILABLE TO 'A' UNDER THE CIRCUMSTANCES IN SERVICE TAX ASSESSMENT? Because there is neither extra service provided by B nor any revenue loss to the government in this case.
Thanks in advance
CAclubindia
