Ignorantia Juris Non Excusat: CESTAT Says Plea Of Confusion No Defence, Upholds Service-Tax On Work Contract

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that ignorance of law is not a valid defense, rejecting a works-contract provider’s plea of “confusion” about service-tax liability. The Tribunal upheld a demand raised under the Finance Act, 1994, including invocation of the extended period of limitation. The ruling clarifies that even if taxpayers claim they were unclear on the taxability of certain contracts, that does not absolve them of liability — reinforcing legal certainty and discouraging opportunistic litigation based on lack of knowledge. (Taxscan)