9911796707
TMI Blog2014 (9) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... aking a view that the appellant should have paid service tax on the hire charges collected by them on the water meters, proceedings were initiated against the appellant which is culminated in the impugned order wherein it has been held that appellant is liable to pay service tax of Rs. 2,76,48,398/- with interest for the period from May 2008 to February 2010. Service Tax has been demanded by treating the service as 'Supply of Tangible Goods' service. 2. Learned advocate submits that the appellant is performing statutory function and within the meaning of statute, appellant has to be treated as State. What is collected by them is a statutory levy and he submits the charges collected by them are prescribed by the statute and therefore i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note that the service itself became liable to tax w.e.f. May 2008 only and therefore reliance of the circular itself can be questioned. In any case one of the main grounds taken by the Board while issuing circular is that the amount should be collected in terms of a statute and should be deposited into Government treasury. Further it was also submitted by the learned counsel that in the case of electricity meters also there was a Board circular saying that such charges collected are not liable to tax. However it was pointed out by the learned AR that Board circular was issued with regard to applicability of an exemption notification and the view taken was that exemption notification would be applicable. Therefore this submission would not h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tributable to the normal period of limitation. 4. The learned counsel submits that he does not have any data to submit the actual amount attributable to the normal period. Further we also find that a copy of the show-cause notice is also not placed along with the appeal papers. In the absence of details of actual amount on a periodical basis and since we need a total amount demanded, the only option would be to calculate the amount on a pro rata basis, which comes to about Rs. 60 lakhs for the normal period. Under these circumstances we consider that if the appellant deposits an amount of Rs. 50 lakhs (Rupees Fifty lakhs only) within 6 weeks from today and reports compliance, that would be sufficient for the purpose of hearing the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
