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IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M.SINGH, SHAIL JAIN
Commissioner Of Central Tax, CGST Delhi South – Appellant
Versus
Indure (P) Limited – Respondent
JUDGMENT :
Prathiba M. Singh, J.
1. This hearing has been done through hybrid mode.
2. This is an appeal challenging the impugned order dated 30th July, 2024 by which the appeal of the Department has been dismissed by Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi (hereinafter, 'CESTAT').
3. On the last date of hearing, notice was issued to the Respondent and they were directed to file the relevant documents which are relied upon in support of the CA certificate, along with the reply to the appeal.
4. Today, Mr. Bhatia has appeared for the Respondent. Mr. Tyagi and Mr. Bhatia have been heard.
5. The short question that arises in this matter is whether the Respondent was liable to pay any service tax on the differential amount which was reflected in the returns filed under the Value Added Tax Act, 2005 (hereinafter, ‘the VAT Act’) and under the Service Tax Act, 1994 (hereinafter, ‘the 1994 Act’). The said issue has been considered by the Adjudicating Authority which has framed the following questions:
“Whether there is short payment of Service Tax under Works Contract Service arising out of Reconciliation?”
6. In respect of this question, the Adjudicating Au
Service tax demands cannot be based on mere discrepancies without proper evidence; best judgment assessments must derive from substantiated materials.
The principle that payment of service tax on gross receipts exempts a contractor from simultaneous VAT liability was established, requiring proper verification by the assessing authority.
Service Tax Demand – Once, assessee at relevant time cannot be said to be consulting engineer and/or rendering services as a consulting engineering, assessee is not liable to pay service tax on ‘work....
Assessee is not entitled to take total contract value which includes both goods and services and remit service tax on value as works contract service and, in the process, also entitled to avail CENVA....
Service tax demands remanded for verifying work order exemptions, appropriating payments, and examining limitation; extended period inapplicable without proven suppression amid audits; sub-contractor....
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