Reimbursement of service tax - works contract - It is clear that ...

Court Rules Contractual Silence Leaves Service Tax Liability with Petitioner; No Reimbursement Right.

March 1, 2022

Case Laws     Service Tax     HC

Reimbursement of service tax - works contract - It is clear that irrespective of the fact who has to pay the service tax under statute, the parties by contract can fix the liability on any one between them. It goes without saying that if the contract is silent as in the instant case, one has to necessarily fall back on the statute to fix the liability. As rightly contended by the learned Standing Counsel for respondents, the agreement dated 20.07.2015 is silent on the liability of service tax being born by whom. Therefore, primarily the petitioner is responsible to pay the service tax - the petitioner cannot, as a matter of right, claim that the respondents should reimburse the service tax paid by him. - HC

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