Bollywood diva Katrina Kaif has got relief in the Rs 2.79-crore service tax case with tribunal of the view that this liability has been discharged by Katrina agent for the the modelling assignments she has done.

“In this case, appellant (Katrina) has appointed Matrix as her agent to discharge her service tax liability on her behalf and the same has been discharged by Matrix,” said a ruling by the Mumbai bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

The ruling follows an appeal by Katrina R Turcotte (Katrina Kaif) against Service Tax Commissioner order asking Katrina to clear service tax liability of Rs 2.79 crore under the head ‘Business Auxiliary Service’. The amount included an interest in addition to the penalty of Rs 33.68 lakh.

Point to be noted here is that the service tax department had slapped the duty on Katrina Kaif  for providing services to number of companies for promoting products through modelling assignments, advertisement films, TV commercials and still photography.

Katrina’s lawyers were of the opinion that she had discharged the service tax liability through her agent Matrix India Entertainment Consultants.

However, the revenue department contended that the tax liability was discharged under ‘Advertisement Agency Service’ head rather than under ‘Business Auxiliary Service’ category. And because of this actress was liable to pay the service tax.