TMI Blog2008 (9) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... that liability to pay income-tax arising out of income from the services rendered is on the assessee - TDS amount deducted was payable only on behalf of the assessee to the Income-tax Dept. – so it is not justified to exclude the said amount from the gross amount for the purpose determining the service tax - ST/334 OF 2006 - ST/270 OF 2008 - Dated:- 25-9-2008 - JUSTICE S.N. JHA, PRESIDENT and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Government agencies came forward and paid the service tax on the portion of amount of service charges retained by them under TDS. (c) Subsequently, on the basis of show-cause notice issued, the original authority confirmed the demand of differential service tax along with interest on the TDS portion of the service charges and adjusted the amount paid by the Rajasthan Government agencies toward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of withheld TDS as cum-duty tax for the purpose of service tax does not arise. Therefore, reduction of service tax demand and consequent reduction in interest on the service tax ordered by the Commissioner (Appeals) was incorrect. He also submits that setting aside the penalty was not justified. 5. Learned Company Secretary appearing for the respondent submits that the withheld amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant to the Income-tax Department. We do not find any justification to exclude the said amount from the gross amount for the purpose determining the service tax and we allow the appeal of the department in this regard. We hold the service tax and interest shall be as determined by the original authority. 7. In respect of penalty, we accept the views expressed by the respondent that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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