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2019 (8) TMI 9 - HC - Service TaxLiability of service tax - agreement of lease - existing and future charges, assessments and outgoings payable in respect of the leased premises - case of respondent is that though the Panchayat is the assessee to service tax, it has to be recovered from those who utilise the services - delay of five or six years in making the demand - HELD THAT:- In the petitioners' case, the agreement is of a lease. The petitioners were aware of the terms and conditions of the lease agreement, including Clause 2(2) indicated earlier, at least at the time of executing it. The petitioners have signed the Lease Deeds knowing the terms, with open eyes. The petitioners, therefore, cannot wriggle out of their liability. The argument of the counsel for the petitioners that since the Panchayat is the assessee to service tax, the service tax arrears cannot be recovered from the tenants, cannot stand the scrutiny of law - In RASHTRIYA ISPAT NIGAM LTD. VERSUS DEWAN CHAND RAM SARAN [2012 (4) TMI 457 - SUPREME COURT], the Apex Court held that the provisions concerning service tax are relevant only between the assessee under the statute and the tax authorities. The statutory provisions cannot be of relevance to determine the rights and liabilities of the parties who have entered into a contract between them. The Apex Court held that in the same manner a seller who is a sales tax assessee can recover the tax from buyer, a service tax assessee can recover the service tax from recipient of service, by agreement. In this case, the petitioners-lessees have signed an agreement making themselves liable to pay future charges, assessments, outgoings, etc. of the leased premises. The petitioners are bound by it - demand upheld. Petition dismissed - decided against petitioner.
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