Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2019 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 245 - HC - Service TaxScope of the terms of contract - reimbursement of additional liability of service tax - supply and washing of bedrolls to the passengers travelling in the trains - Held that:- The issue raised in these present writ petitions is a matter of contract between the two parties and the same cannot be pronounced by this court at this stage prematurely. Neither the said issue for bearing additional tax liability has been adjudicated by any competent authority of the respondent-railway or the Service Tax Department nor the parties have raised this dispute before the agreed alternative forum of arbitration. There has been no novation of contract between the parties after July 1, 2012 with regard to variation of rates for the services rendered by the petitioner-contractor nor apparently the respondent-railway has agreed to bear the additional tax liability in the form of service tax after its imposition by the amendment of law with effect from July 1, 2012. This court respectfully cannot adopt the said view of the Delhi High Court in the case of GOVT OF NCT OF DELHI VERSUS MBL INFRASTRUCTURE LTD. [2012 (3) TMI 437 - DELHI HIGH COURT], in the present case as the terms of the contract are different and rates quoted are inclusive of all taxes and moreover the parties to the contract should have allowed the said issue to be either mutually agreed between the parties either by way of novation of the contract terms or by getting the matter adjudicated in the forum of arbitration. Unless the said additional service tax liability is ex-facie admitted in the contract, this court cannot either vary the terms of the contract nor direct the respondent-railway to reimburse the service tax liability to the petitioner-contractor. Petition dismissed.
|