2020 (3) TMI 19 - HC - Service Tax

Demand of service tax from the partnership firm - appropriation of service tax by the proprietorship firm - a partnership firm was constituted and the proprietorship business was taken over by the partnership firm with all the assets and liabilities - HELD THAT - The service tax for some period was being paid in the name of the sole proprietorship business, and not in the name of partnership firm. Subsequently the partnership firm claimed that the tax for the relevant period be treated as the tax paid by partnership firm - It is pointed out by learned counsel for the petitioner that a representation given for the same on 22.7.2019, as contained in Annexure-13 to the writ application, is still pending before the Commissioner of CGST, Central Excise Service Tax, Ranchi, which has not yet been disposed of. Application disposed off with the direction to respondent No.1, the Commissioner of CGST, Central Excise Service Tax, Ranchi, to dispose of the representation of the petitioner firm, by a speaking order within a period of four weeks from the date of receipt of such representation.

Summary

The High Court of Jharkhand directed the Commissioner of CGST to dispose of a representation by a petitioner firm regarding payment of service tax within four weeks. The petitioner firm, previously a sole proprietorship, had transitioned to a partnership firm, leading to confusion in tax payments. The court's decision was based on pending representation and the need for a resolution.