Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Bonafide Service Tax Payment on Composite Contract under CCS instead of WCS: CESTAT sets aside Demand of Extended Period
Excise, VAT & Custom
The CESTAT Chennai bench set aside a service tax demand for an extended period on M/s. R.R. Constructions, which had paid service tax on composite contracts under Construction of Complex Service (CCS) instead of Works Contracts Service (WCS).
The appellant claimed 67% abatement under Notification No.1/2006-ST but the department reclassified the services under WCS and issued a demand for differential tax. The tribunal noted that the appellant had not suppressed facts and had paid taxes in good faith, following contemporaneous departmental views.
The tribunal, comprising Ms. Sulekha Beevi C S and Mr. Vasa Seshagiri Rao, observed that the classification issue was interpretational, not suppression, and thus the extended period demand was invalid. Only the April-June 2012 demand was upheld.
