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TMI Blog2023 (1) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted for the service rendered to the Government for public utility by notification No.25 of 2012 by the Central Government - HELD THAT:- The Honourable Division Bench, in M/S. RAJU CONSTRUCTION, [ 2022 (12) TMI 1336 - MADRAS HIGH COURT] , dismissed the said batch of writ petitions with certain observations - it was held that Services provided by these petitioners were declared services . Thus, the services provided by these petitioners would have been liable tax at 12% on the taxable value and later at 14% vide Notification No.14/2015-ST, dated 19.05.2015 with effect from 01.06.2015 but for the exemption vide Entry 12(a), (c) (f) to Mega Exemption Notification No.25/2012-ST, dated 20.06.2012 - services provided by these petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent, the service tax, interest and penalty if any thereon that may be demanded by the respondents 1 and 2 in respect of the works contract service other than commercial nature to the Government of Tamilnadu, with effect from 01.04.2014 to 30.06.2017. 2.The petitioner in W.P.(MD)No.24535 of 2022 is registered first class contractor, PWD Department, doing regular public works contract for the respondents 6 to 8 by entering into agreement with the respondents and their subordinate officials. The 2nd respondent passed an assessment order for the period from 01.10.2014 to 30.06.2017 for the service rendered under the category of 'works contract service' to the Government of Tamil Nadu. In the Assessment proceedings, service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rojects, etc. The works contractors service tax for the construction of other public places like hospitals and schools is highly discriminatory and violative of Article 14. The withdrawal of such exemption will lead to collection of Service Tax from the Government, again, the same is to be paid back to the Government, which will serve no purpose at all. The conditions laid down in the contract executed between the petitioner and the Government does not mandate the contractors to include the service tax. Hence, the respondent Government is liable to pay the Service Tax and not the contractors. 5. The Government of Tamil Nadu being the respondent is liable to pay Service Tax and the same shall not be vested on the contractors. Hence, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying the principle contained in Section 64-A of the Sale of Goods Act, 1930. 120. Therefore, it cannot be said that the petitioners are remediless. They can certainly file a suit to recover the amount from the person who engaged their services by invoking principles in Section 64A of the Sale of Goods Act, 1930. 121. In the light of the above, the challenge to the impugned Notification No.6/2015-Service Tax, dated 01.03.2015 fails. Consequently, the challenge to the impugned Show Cause Notices / Summons / Demand Notice, Orders-in-Original, Letters / Communication and etc. also fails. 122. As far as the prayer for Writ of Mandamus in Table No.7 to direct the authorities acting under the Finance Act, 1994 to collect tax pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lies to the same and participate in the adjudicatory mechanism provided under the Finance Act, 1994. Such of those petitioners shall file their replies within a period of sixty (60) days from the date of receipt of a copy of this order. The respondents shall thereafter pass appropriate orders on merits within a period of ninety (90) days, after giving the respective petitioners adequate opportunity of being heard. 126. Wherever investigations are pending and wherever / Summons / Summons / Letters or Communications have been issued to the such of those petitioners, they shall be completed within a period of six (6) months and thereafter, Show Cause Notices shall be issued to the respective petitioners. They shall file their reply to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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