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2017 (3) TMI 729 - HC - Service TaxWorks contract - petitioner is an an A-Grade Electrical Contractor engaged in electrical works - time limitation - petitioner case is that the initiation of proceedings by the authority is beyond the period of limitation as prescribed under Section 73(1) of the FA, 1994 and there was no reason to invoke the proviso to Section 73(1) of the Act to enlarge the period of limitation by five years - another case of petitioner is that the petitioner had undertaken the contract for five builders who had already collected the service tax component from the petitioner's bill and they, having accounted for the same, there was no obligation on the part of the petitioner to pay any amount as service tax. Held that: - merely for the reason that a person did not pay service tax or did not file return does not amount to wilful suppression of facts to evade payment. That apart, the petitioner has a case that service tax amount had already been collected by his principals and they have accounted the same in their books of accounts. In the said circumstances, I am of the view that neither show cause notice nor Ext.P2 order contain any material to arrive at a finding that the Department was entitled to invoke proviso to Section 73(1) of the Act. Hence it requires a fresh consideration of the matter - matter on remand. Regarding another issue that contractors have already collected the service tax component from the petitioner's bill and they, having accounted for the same, there was no obligation on the part of the petitioner to pay any amount as service tax, apparently the said objection of the petitioner also requires to be considered in accordance with law especially when a contention is raised that the principals of the petitioner have collected service tax from the petitioner. Petition allowed by way of remand.
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