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2019 (6) TMI 1148 - BOMBAY HIGH COURTInterpretation of clauses of agreement - reimbursement of service tax - who is liable to bear the service tax - Section 83 of the Finance Act 2007 - HELD THAT:- As a legislation by reference sub-Section (2) of Section 64A of the Sales of Goods Act making applicable sub-Section (1) of Section 64A to any duty of Customs or Excise on goods and as a legislation by incorporation Section 83 of the Finance Act making applicable Section 12B of the Central Excise Act to Service Act, Section 64A(1) is applicable to Service Tax - From the provisions as noted and the decisions of the larger benches it is evident that a service tax is a VAT which in turn is a destination based consumption tax and is to be borne by the consumer of goods. Further, unless contracted to the contrary, the consumer of service is liable to refund the said tax to the service provider who in turn is liable to pay to the government. In the instant case, the clause in question does not fix liability on the contractor to pay service tax that apart from, the clause required interpretation and in view of the aforenoted Judgments regarding the interpretation of the contract, view taken by the learned Arbitrator cannot be faulted. Appeal dismissed.
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