Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2024 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 8 - HC - Service TaxExemption from service tax - Providing computer training services on behalf of Municipal corporation - sub-clause (a) of Section 66D of Finance Act, 1994 - payment made by the Corporation to the petitioners would amount to services - HELD THAT - Sub-Section (a) of Section 66D of Finance Act, 1994 has been reproduced hereinabove which indicates that the services by Government or local authority excluding the services under sub-clause (i) to sub-clause (iv) thereof would be in the negative list and in terms thereof no service tax would be payable on such services - In the present case, the Corporation has entered into an agreement with the petitioners to render computer training to persons identified by the Corporation as regards which those persons did not make payment of money, but the payment was made by the Corporation to the petitioners. The present transaction would not come within the purview of sub-section (a) of Section 66D of Finance Act, 1994. The matter would have been different if the concerned candidate paid the money to the Corporation, then the Corporation would not be required to make payment of any service tax on that amount. However, so long as the payment is made by the concerned candidate to the petitioners or by the Corporation to the petitioners, the service provider being the petitioners, there is an obligation on part of the petitioners to collect the service tax from the payee and be remitted to the concerned department - the stand taken by the Corporation that it is exempted from making payment under Section 66D of Finance Act is of no avail. The Corporation availing the services of the petitioners to render computer education to persons belonging to economically weaker section as regards which the Corporation has made the payment of monies to the petitioners would be amenable to service tax, that is to say, it is not exempted from service tax - Petition allowed.
Issues Involved:
The judgment involves issues related to writ petitions seeking various reliefs, including quashing of orders, mandamus for payment of specific amounts, consideration of representations, and other directions. W.P. No. 44252/2015 and W.P. No. 48640/2015: The petitioners sought a writ of certiorari to quash an order and mandamus for consideration of representations. The Corporation engaged the petitioners to provide computer education services to economically weaker sections, making payments on behalf of the students. The Court held that the Corporation, as the service availer, is liable to pay service tax on such transactions. The legal opinion cited by the Corporation was deemed irrelevant. The Court allowed the petitions, quashed the order, and directed the Corporation to calculate and release the service tax due to the petitioners. W.P. No. 48639/2015: In this petition, the petitioner sought a mandamus for the consideration of representations. The Court's decision in this matter was aligned with the judgments in W.P. No. 44252/2015 and W.P. No. 48640/2015, emphasizing the Corporation's liability to pay service tax for the services provided by the petitioners. The Court directed the Corporation to calculate and release the service tax amounts due to the petitioner within a specified timeframe.
|