TMI Blog2014 (11) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... tax assessment orders to prove that transfer of property in the retreading activity is leviable to sales tax. - Following decision of G.D. Builders Vs UOI [2013 (11) TMI 1004 - DELHI HIGH COURT] - Matter remanded back - Decided in favour of assessee. - Appeal No.ST/S/40951/2014 & ST/40714/2014 - FINAL ORDER No.40505/2014 - Dated:- 24-6-2014 - Shri P.K. Das and Shri R. Periasami, JJ. For the Appellant : Shri M.N. Bharathi, Advocate For the Respondent : Shri K.P. Muralidharan, Supdt. (AR) JUDGEMENT Per P.K. Das; 1. After hearing these applications at length, we find that appeal may be decided at the stage of stay petition hearing. Accordingly, after disposing the stay application, we take up the appeal for heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said judgement is reproduced herein below :- 17. It was accepted and stated on instructions by the respondents that the notifications in question (or rather partly in question) are optional and an assessee need not take benefit of the said notifications, if he so desires, but the Service Tax is to be levied and is payable on the service component of a composite contract, which can be computed. The notifications also specifically stipulate, when they apply and the preconditions which must be satisfied before they can be applied. 36. The aforesaid judgments and discussion highlight the following facets/principles : (1) After 46th Amendment to the Constitution, composite contracts can be bifurcated to compute valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entirety. (6) Notification has to be read as a whole keeping in mind its objective and purpose. Notification may provide a convenient, hassle free and adopt a non-discretionary formula for computing value of the service element in a composite contract. This curtails litigation, ambiguity, ensures clarity and consistency. A notification cannot be declared as invalid or ultra vires for this reason, provided it is optional. (7) Authorities cannot compel and force an assessee to accept the notifications in question and pay tax accordingly, as seeking coverage under the notification is voluntary. An assessee can state that the service component of a composite contract should be computed in a fair and reasonable manner and accordingly tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
