Demand of service tax cannot be raised when the tax liability has already been discharged under RCM

Last updated: 04 December 2024
Quick Summary
The CESTAT Ahmedabad has ruled that a service tax demand cannot be raised if the tax liability has already been discharged under the Reverse Charge Mechanism (RCM). In this case, the appellant, Utility Labour Suppliers, faced a demand for service tax due to discrepancies in declared service values. However, the tribunal found that the recipient of the manpower supply service had already paid the full tax liability under RCM. Therefore, raising a demand against the supplier would constitute double taxation, and the original order was set aside.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in the case of Utility Labour Suppliers v. Commissioner of C.E.-Ahmedabad-II [Service Tax Appeal No. 10780 of 2022-DB dated November 26, 2024] held that demand of service tax cannot be raised when the tax liability has already been discharged under RCM.

Citation :
Service Tax Appeal No. 10780 of 2022-DB dated November 26, 2024

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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Bimal Jain
Published in GST
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