Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2019 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 263 - HC - Service TaxScope of the contract - collection of service tax from the parties by enforcing bank guarantee - power of Power Distribution Company to initiate recovery proceedings - mere audit objection raised by the Accountant General as regarding liability admissible under the Service Tax Law - HELD THAT:- We are in no confusion to hold that in absence of adjudication by the respondent Department on the issue, we are not required to express ourselves as to whether the contract executed by the petitioner was exigible to service tax and if the answer was ‘Yes’, then the extent of liability to be suffered by each of the party. We would leave such determination at the wisdom of the Department to come to a just conclusion on the issue obviously, in a duly constituted proceeding and on hearing the parties. Whether the act of the Power Distribution Company to mechanically proceed on the audit objection of the Accountant General to make realization of the service tax from the bills of the petitioner by enforcement of the Bank Guarantee is justified? - HELD THAT:- It is not a case that while making payment of the bill of the petitioner, any amount was deducted by the Power Distribution Company rather having made payment for execution of the contract in question that when audit objection came they have chosen to enforce the Bank Guarantee to realize that amount of service tax which as per their own statement, was actually payable by them in terms of the notification bearing no. 30 of 2012 dated 20.06.2012 - Since this is purely a contractual dispute and requires interpretation of the terms of the contract, we leave it open for the parties to resolve the issue of payability before the appropriate forum. The respondents no. 2 to 4 are directed to remit the amount recovered within a period of eight weeks from today - petition allowed.
|