Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2011 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 1267 - HC - VAT and Sales TaxWhether in the case of a catering contract, in particular outdoor catering, when the assessee has claimed in the invoices specifically the value of goods as well as the value of the services rendered and paid service tax on the service component, is it open to the sales tax authorities to levy sales tax on both the components, namely, the value of the goods and the value of services rendered? Held that:- The appeals are allowed. The impugned order passed by the learned single judge as well as the assessing authority, are hereby set aside, It is declared that a contract for out-door catering is a composite contract which falls under sub-clause (f) of clause (29A) of article 366 of the Constitution of India and service tax is payable on service aspect and sales tax is payable on deemed sales aspect and it is not an indivisible contract. The assessee had deposited by virtue of the interim order of the learned single judge, a sum of ₹ 25 lakhs. Now that the assessment order are set aside declaring that the sales tax is not liable to be paid on service aspect, the Revenue shall refund the said amount of ₹ 25 lakhs within four months from the date of the receipt of this order with interest at six per cent per annum, failing which the interest payable will be 12 per cent per annum.
|