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2014 (7) TMI 744 - AT - Service TaxCommercial or Industrial Construction Service - Works contract service for Delhi Jal Board - Tax imposed on the basis of agreement which states that "if payable is extra, it must be inferred that the appellant had collected the amount of service tax" - Held that:- The conditions precedent for ordering any person to remit (an amount collected as service tax, which is not required to be so collected), is a finding of fact that the person had in fact collected an amount towards service tax even though no service tax liability arises under the transaction qua which such collection is made. This finding of fact must be recorded by the Revenue. The liability to remit service tax under Section 73 A(2) does not arise on the basis of a mere permission in an agreement that the liability to compensate/reimburse to service tax liability of the service provider, is on the service recipient. Sub-section (3) of Section 73(A) requires a notice to be issued to show cause why the amount, as specified in the notice, in respect of a liability arising under Section 1 and 2, should not be paid by the Noticee to the credit the Central Government. - The show cause notice in this case failed to allege that the appellant had collected service tax of ₹ 41,18,665/- from the Delhi Jal Board - Impugned order unsustainable - Decided in favour of assessee.
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