𝗖𝗲𝘀𝘁𝗮𝘁 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗢𝗿𝗱𝗲𝗿: 𝗧𝗼𝗹𝗹 𝗖𝗵𝗮𝗿𝗴𝗲 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗡𝗛𝗔𝗜 𝗡𝗼𝘁 𝗟𝗶𝗮𝗯𝗹𝗲 𝘁𝗼 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Toll collection on behalf of NHAI is not chargeable to Service Tax. Appeal allowed."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Sangam India Limited 𝗜𝘀𝘀𝘂𝗲: Toll/user fee collection by private entities for NHAI under contract is not subject to Service Tax, as the contractor bears operational risks and is not a "commission agent."

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled toll collection by the appellant was independent, with operational risks borne by them, not as a commission agent. It relied on precedent invalidating Circular No. 152/3/2012-ST and clarified Section 66D exempts such services without provider-based restrictions. Hence, no Service Tax liability arose.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Sangam India Limited Vs Commissioner of Central Excise 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 21 February 2023 📜 Toll collection under NHAI contracts is not taxable, as contractors independently operate and bear associated risks, not acting as agents..