75th Founding Day Lecture Meeting on “India@2030” Know More

July 2023

Service Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang
Chartered Accountants
Reading Time 6 mins
TRIBUNAL

6. Commissioner of Central Excise & Service Tax, Goa vs. Goa Golf Club Pvt Ltd
Date of order: 9th February, 2023

Share of Profit received by co-venturer under a joint venture agreement was not liable to service tax.

FACTS

Respondent M/s Goa Golf Club Pvt Ltd (GGCPL) had entered into a joint venture agreement with M/s Britto Amusement Pvt Ltd (BAPL) to run and operate a casino at the premise of M/s BAPL, on a mutually agreed profit-sharing ratio. SCN was issued demanding service tax on the distribution of share of profit. The respondent submitted the response and the adjudicating authority dropped the demand of service tax. Aggrieved by the same, an appeal was filed by the department contesting the dropping of service tax demand.

HELD

Tribunal after relying upon Circular No. 109/03/2009 dated 23rd February, 2023 held that there was no relationship of the service provider and service receiver with the parties to joint venture agreement. Also, no consideration was received by GGCPL for rendering any service. Consequently, the appeal was decided in the favor of respondent.

7. M/s Lakshmi Electrical Driver Ltd. vs. CCE & ST (Appeals)
2023-TIOL-462-CESTAT-MAD

Whether RCM is applicable under section 66A when the foreign service provider has a 100 per cent subsidiary in India.

FACTS
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