2026-VIL-399-CESTAT-HYD-ST
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SERVICE TAX CESTAT Cases

Service Tax - Payment of Service Tax under Reverse Charge Mechanism (RCM) - Appellant received security services from providers other than body corporates, and was liable to pay 75% of the service tax under RCM - Appellant claimed that the service providers had paid the entire service tax, which was reimbursed by the Appellant, and thus the Appellant is not liable to pay the tax again – Whether the appellants are liable to pay service tax on security services received by them to the extent of 75% of tax payable under RCM - HELD - If tax was liable to be paid under RCM but already paid by the service provider, it was not upon to the Department to confirm the same against the appellant - As per the provisions both service provider and recipient are required to discharge service tax liability in the case of said service in a particular proportion i.e. 25% & 75% respectively. However, if the service provider has himself has discharged the entire liability either on his own or as per the understanding between the service provider and service recipient, any further demand would lead to double taxation on the same set of services - However, the Appellant was unable to conclusively prove that the entire service tax was paid by the service provider. The matter is remanded to the Original Adjudicating Authority to examine the evidence and determine the extent to which the service tax was paid by the service provider, and the demand against the Appellant shall be limited to the remaining amount. The invocation of extended period and imposition of penalty are upheld, as the Appellant was aware of the statutory provisions for payment under RCM and failed to provide conclusive evidence - The matter is remanded to the Original Adjudicating Authority who shall satisfy himself regarding payment of service tax by the service provider themselves to the extent of 100% and to that extent the demand against the appellant would not sustain on merit. In respect of remaining amount, the demand will sustain – The appeal is disposed of
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