Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2013 (2) TMI HC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2013 (2) TMI 487 - HC - Service Tax


Issues:
1. Whether the Tribunal was justified in directing the appellant to pre-deposit a sum of Rs. 1.50 crore for hearing the appeal on merits?

Analysis:
The appellant, engaged in turnkey works contracts, registered for service tax under the Finance Act, 1994. A demand notice was issued for Rs. 3.74 crores, alleging ineligibility for a tax benefit and invoking the extended limitation period. The Commissioner confirmed the demand and penalty, stating lack of evidence for sale of goods. The appellant appealed, seeking waiver of pre-deposit. The Tribunal ordered a pre-deposit of Rs. 1.50 crore, citing lack of evidence for the tax benefit. However, the High Court noted evidence presented before the Commissioner, emphasizing that the value of goods supplied was on record. The Court highlighted the need to consider the supply value of goods in the context of the work contract to determine if it included the sale of goods. The Court also addressed issues of limitation and incorrect duty computation, remanding the matter to the Tribunal for fresh consideration of the stay application.

This judgment emphasizes the importance of considering all evidence presented in tax disputes and understanding the context of work contracts in determining tax liability. It highlights the need for a comprehensive assessment of the supply value of goods in relation to the services provided. Additionally, the judgment underscores the significance of addressing issues of limitation and correct duty computation in tax matters. The Court's decision to remand the case for further consideration ensures a fair review of the appellant's arguments and contentions, maintaining the principle of natural justice in tax dispute resolution.

 

 

 

 

Quick Updates:Latest Updates