𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗪𝗼𝗿𝗸𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗮𝗻𝗱 𝗧𝗮𝘅 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 📢 The Tribunal held: "The activity involves both goods (wooden crates) and services (packing), qualifying as Works Contract Service, eligible for abatement under Notification No. 30/2012. Charging service tax on both parties would result in double taxation."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Sipani Enterprises 𝗜𝘀𝘀𝘂𝗲: Whether the appellant’s payment of 50% tax, with the remainder paid by the service recipient, resulted in short payment of service tax?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provided packaging services to M/s HEG, supplying wooden crates and performing packing activities. The appellant paid 50% of the tax under Notification No. 30/2012-ST, with the remaining 50% paid by the recipient. 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: A show-cause notice alleged incorrect filing and inadmissible abatement, demanding service tax, interest, and penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that the appellant's service, involving both goods and services, qualified as a Works Contract under Section 65B (54) of the Finance Act, 1994. With both the appellant and recipient paying 50% of the tax under the reverse charge mechanism, double taxation was avoided. The appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Sipani Enterprises vs. Principal Commissioner of Customs, Central Excise & Service Tax 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 51289 OF 2017 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 18 December 2023

📜 This ruling confirms that services involving both goods and services can qualify as Works Contract Service, preventing double taxation when tax is discharged under the reverse charge mechanism.