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2020 (10) TMI 1107 - HC - Service TaxLiability of Service Tax - business of providing washing and cleaning bedrolls and linen - non-receipt of payment of the amount of tax from the recipient of the services - non-compliance with the statutory provisions or not - maintainability of appeal under Section 85 of the Act, challenging the order(s) of the appropriate authority constituted under the Act - HELD THAT:- Language of the statute is simple, clear and unambiguous. The service provider, so defined, is mandatorily required to register and make payment of component of tax with receipt to the services so rendered. The Act does not stipulate payment only on receipt thereof - petitioner has not registered itself under the statute; nor paid any tax. The order passed was after affording an opportunity of filing response; all contentions allowed to be raised, considered and dealt with; fair opportunity of hearing afforded; reasons for assessing the liability stands assigned; statutory provisions correctly appreciated and applied to the attending facts and circumstances. There is no violation of principles of natural justice. There is no misconstruction or misappreciation of fact or misapplication of the law - Petitioner has been providing service to the Government authority. The service does not fall within the specified services contained in the negative list. The amount received from the Railway Authorities is not in dispute, and the incidence of taxation stands correctly determined. The defence taken by the petitioner of persuading the service recipient to pay the amount or having initiated proceedings seeking appointment of an Arbitrator for settlement of disputes rightly stands rejected by the Assessing Authority, for compliance of the statutory provisions are not subject to or dependent upon the contractual terms governing the parties - Arbitral proceedings would only determine obligations inter se the parties to the agreement and not the liability or factum of compliance of statutory provisions. The statute mandates timely payment of component of tax. There is no provision for deferment, either till the time of its receipt or payment only subject to that. Hence, the contentions raised by the learned counsel at the time of the hearing, being untenable stands rejected. The liability to pay the tax in terms of Chapter V and VA of the Finance Act, 1994 rests solely upon the petitioner, being the service provider - Such liability cannot be deferred. It is not subject to receipt of any amount, be it a tax or otherwise, from the service recipient - Failure on the part of the service recipient to pay the amount under the service provider agreement cannot be a reason sufficient enough for non-compliance of the statutory provisions by the service provider. Equally, it also cannot be set up as a defence in the adjudicatory proceedings - The Act provides for a complete mechanism for adjudication of all issues of fact or law before different forums.
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