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2011 (8) TMI 558 - KERALA HIGH COURTAppellant Life Insurance Company (Service Provider) - Respondent Service Receiver - Whether amount of premium paid includes Service Tax or Not - Held That:- It depends upon the terms of the contract in pursuance to which Ext.P1 policy was issued. The premium paid during 2006, 2007 and 2008 is accepted by appellant and service tax during those three years was paid out of the collected amount. When Ext.P1 policy was issued the service tax was in force and the premium was determined by the appellant on its own taking into account of the nature of the business, viability and profit, if not huge profit. The fact that the appellant didn't claim service tax till the 4th instalment persuades us to arrive at a conclusion in favour of the 2nd respondent. Suppression of the prevailing taxes and levies would amount to material misleading concerning the price. Such misleading in turn would come within the above definition of unfair trade practice which we cannot allow, but to deprecate and condemn such greedy devices of the multinational companies in attempt to make pigmy profit exploiting the public including illiterate rural mass. Therefore, we rule that a service provider who doesn't disclose the prevailing statutory duties and levies at the time of transaction is not entitled to claim such taxes and levies from the consumer at a later stage during the course of continuing service. - Appeal Dismissed.
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