In the case of Katrina
Kaif vs. Commissioner of Service Tax Mumbai - I, the Hon’ble CESTAT (Mumbai
Bench) vide order no. A/670/2012/CSTB/C-I, Appeal No. ST/387/2011, dated
09.10.2012 {2012(12) TMI 579- CESTAT- MUMBAI} has held that merely by paying service tax
liability under wrong head does not mean that service tax liability has not
been discharged and has to be deposited again in correct category. Further, the
Hon’ble CESTAT has also clarified that the assessee means a person who is
liable to pay service tax and includes his agent.
In this case, Katrina Kaif appointed M/s
Matrix India Entertainment Consultants (P) Limited as her agent to receive
amount of consideration for promotion of the product and to discharge the
service tax liability on her behalf.
Matrix has discharged the service tax
liability under the category of “Advertisement
Agency Service” under which the agent was registered with the service
tax department. Whereas, the department alleged that the category in which the
assessee, Katrina Kaif, was liable to pay was “Business Auxiliary Services”. The Adjudicating authority further
alleged that the assessee has to discharge again the service tax liability
under Business Auxiliary Service.
In this regard the Hon’ble CESTAT has
clarified that depositing service tax under wrong category does not mean that Matrix
has not duly paid the service tax on behalf of the appellant, Ms. Katrina Kaif.
Hence, even if service tax
has been deposited in wrong category, the adjudicating authority in no case can
demand service tax again under the correct category.
