2022 (5) TMI 202 - HC - Service Tax

Levy of service tax - If service tax was not leviable by the respondent during the relevant period, should not the money be returned to the flat buyers, if they are identifiable? - HELD THAT - This aspect of the matter has not been examined by the Tribunal. Issue notice - List the matter on 23.05.2022.

Summary

Issues involved:
1. Applicability of CENVAT credit for payment of service tax.
2. Invocation of extended period of limitation.
3. Leviability of service tax on services rendered by the builder.
4. Interpretation of Section 73A of the Finance Act, 1994.
5. Examination of returning money to flat buyers if service tax was not leviable.

Analysis:
1. The appellant contested the utilization of CENVAT credit by the respondent for payment of service tax amounting to Rs. 5,30,67,272/- collected from flat buyers. The objection raised was regarding the payment of tax through CENVAT credit, which was the crux of the appeal.

2. The appellant invoked the extended period of limitation, alleging misrepresentation of facts by the respondent. However, the Tribunal ruled against the appellant on this ground, indicating a crucial aspect of the case where the Tribunal's decision differed from the appellant's contentions.

3. An argument was presented that no tax was leviable on the services provided by the respondent to flat buyers during the relevant period. The appellant contended that the entire tax amount should have been deposited in cash, emphasizing the issue of the leviability of service tax on the services rendered by the builder.

4. Reference was made to Section 73A of the Finance Act, 1994, regarding the demand confirmation under this provision. The Tribunal did not confirm the demand under Section 73A but under the proviso to Section 73(1) of the Act, highlighting the interpretation and application of relevant legal provisions.

5. A significant question raised was whether, if service tax was not applicable during the relevant period, the money collected should be returned to the flat buyers if identifiable. This crucial aspect was not examined by the Tribunal, indicating a potential direction for further consideration and analysis in the case.

This detailed analysis of the judgment provides insights into the various legal issues involved, the arguments presented by the parties, and the Tribunal's rulings on each aspect, setting the stage for further proceedings and examination of the case.