2013 (7) TMI 1073 - HC - Service Tax

Summary

Issues involved: Dispute over payment of development charges and service tax liability.

Summary:

Issue 1: Payment of Development Charges
The original respondent, G.I.D.C., sought modification of a previous judgment regarding the payment of development charges. The appellant had deposited the development charges as demanded, leading to a direction for G.I.D.C. to issue a No Objection Certificate. However, G.I.D.C. later claimed that the appellant was also liable to pay service tax at 12.36% on the development charges. The court noted that the service tax demand was made after the initial order on development charges, indicating that it could not be levied retrospectively. Despite G.I.D.C.'s arguments, the court found no merit in the claim for service tax, ultimately dismissing the application.

Conclusion:
The application for additional service tax on development charges was dismissed by the court, as the demand was raised after the initial payment and could not be applied retrospectively.