Tax Collected Without Authority Of Law Must To Be Returned To The Customers – CESTAT Delhi

The Hon’ble CESTAT Delhi vide its order dated 09.03.2022 in the matter of Prasar Bharati Vs. Commissioner of Service Tax, Delhi in Service Tax Appeal no. – 52864 of 2016 held that tax collected from the customers without authority of law under the grab of its liability to pay service tax, when actually it was not liable to pay, must be returned to the customers from whom it was collected.


  • The appellant is engaged in providing the service of broadcasting through Doordarshan Kendra, Trivandrum and only carrying the advertisement of the advertisers and broadcasting the same however no advertisement was made by the appellant.
  • That the services provided by the advertising agency was a taxable service, however a circular no. 341/43/96-TRU dated 31.10.1996 was issued by CBEC clarifying that ‘the amount paid excluding the commission by the advertising agency for space and time in getting the advertisement published in the printing media or the electronic media would not be includable’ in value of taxable service for the purpose of levy of service tax.
  • It was observed by the officers of the department that the services provided by Doordarshan Kendra, Trivandrum are taxable, neither any registration has been taken by it nor any tax has been paid or any return filed.
  • On the basis of above three show cause notices were issued to the appellant dated 01.01.2002 (for 1198 -2001), dated 09.05.2003 (for 2001-2002) and dated 06.10.2003 (for 2002 – 2003), however the appellant later on took the registration on 06.08.2003,
  • The Ld. Commissioner while adjudicating the aforesaid show cause notices dropped the demand for first two show cause notices, at the same time confirmed the demand of Rs. 36,92,874/- for the third show cause notice dated 06.10.2003. Hence the present appeal has been filed.To read more subscribe today:



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