Service-tax can't be levied on receipt of share in common expenses
The Supreme Court of India held that Where two
assessees, namely, 'GSFC' and 'GACL' received
acid through common pipeline from Reliance
Industries and said acid came first to premises
of 'GSFC', where handling facilities were
installed, and from there it was shared between
'GSFC' and 'GACL' in ratio of 60:40 respectively
and further by an agreement handling facilities
expenditure was shared equally by both parties,
payment of handling expenditure which was
made by 'GACL' to 'GSFC' was share of 'GACL'
and it could not be treated as common service
provided by 'GFSC' to 'GACL' in order to levy
service tax upon 'GSFC'.