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2021 (2) TMI 84 - HC - Service TaxInterpretation of statute - whether determination of service tax by the Central Excise Officer, is necessary before making a demand under Section 73A(3) of the Finance Act, 1994? - HELD THAT:- From perusal of Section 73A(5) of the Act, it is evident that the amount paid to the credit of the Central Government under sub-section (1) or sub-section (2) or sub-section (4) shall be adjusted against the service tax payable by the person on finalization of assessment or any other proceedings for determination of service tax relating to the taxable service deferred to in sub-section (1). Thus, from perusal of Section 73A(5) of the Act, it is evident that the assessment must precede the demand. After taking note of the provisions of Section 73 of the Act, the learned Single Judge of this Court has held that the power to create a demand under Section 87 of the Act can be exercised only after adjudication namely on assessment of the amount - The aforesaid view has been upheld by the Division bench of this Court in the case of 'UNION OF INDIA VERSUS MRS. PRASHANTHI [2016 (7) TMI 131 - KARNATAKA HIGH COURT]. The substantial question of law framed by this Court is answered in favour of the assessee and against the revenue - Appeal dismissed.
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