Levy of service tax - various public amenities provided by the ...

Case Laws     Service Tax

April 12, 2024

Levy of service tax - various public amenities provided by the Municipal Corporation such as market space, bus stands, vehicle stands, slaughter houses etc. - After considering the submissions and evidence, the Appellate Tribunal ruled in favor of the appellant regarding the taxability of civic amenities, stating that they were sovereign functions exempt from tax. However, they upheld the tax demand for telecom services, as part of the amounts received were deemed payments for services rendered. The Tribunal also accepted the Commissioner's methodology for tax calculation but set aside the demand for the extended period due to lack of evidence of intent to evade payment. The matter was remanded for redetermination of taxes considering factual errors and duplication of taxes. All penalties were set aside.

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