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2024 (5) TMI 927 - PUNJAB AND HARYANA HIGH COURTRevision of assessment order - levy of VAT on the service tax component which the petitioner has separately paid being in catering business - HELD THAT:- On conjoint reading of ‘sale price’ and ‘gross turnover’ the authorities reached at the conclusion that VAT charged would not form part of the sale price. Since, the liability to pay service charge is of the applicant and the applicant has received service tax from the purchaser as consideration for sale, therefore, the service tax would be the part of sale price and VAT would be applicable on the basic price plus service tax. The interpretation taken by the Principal Secretary to the Government of Haryana, is wholly erroneous for implementing and imposing of VAT. The authority would have to examine each case whether the work done is a sale separately from the service in cases relating to catering, where there is an element of sale relating to food etc., the VAT would be applicable. However, for the purpose of service tax where the catering provides the service for serving foot etc., the VAT on the said element cannot be charged and as service tax @ 60% element is only required to be paid, the same cannot be included in the original sale for the purpose of claiming VAT. The issue is no more res integra and the view already expressed by the Hon’ble Division Bench of this Court in M/S SODEXO INDIA SERVICES PRIVATE LTD. VERSUS STATE OF HARYANA AND OTHERS [2010 (9) TMI 985 - PUNJAB AND HARYANA HIGH COURT] followed where it was held that the action of the respondents in issuing show cause notice for revision of assessment is unjustified and based on wrongful interpretation of sale in relation to catering business. Application disposed off.
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