V. V. Sesha Reddy, v. The Union Of India

THE HON'BLE SRI JUSTICE V. RAMASUBRAMANIAN AND THE HON'BLE MS. JUSTICE J. UMA DEVI WRIT PETITION No. 7581 of 2017 ORDER: (Per VRS,J) As against an order in original confirming a demand of service tax to the tune of Rs.21,48,446/-, a person, who undertook the contract of annual maintenance of pipelines, extension of TTD Kalyana Mandapams, supply of labour etc., has come up with the present writ petition.

2.

Heard Mr. K.S. Murthy, learned counsel for the petitioner, and Mr. B. Narayana Reddy, learned Assistant Solicitor General, appearing for the respondents.

3.

It is clear from the impugned order that despite opportunities given to the petitioner, he did not file any response. 4.

The main ground of attack to the impugned order is that service tax is demanded on the gross amount. The gross amount included materials, such as paints, etc., sold. Therefore, assuming that there was a service rendered, the service part of the contract was not independently assessed.

5.

It is clear from the Paragraphs 4.2.3, 4.3.4 and 4.4.4 of the order in original that the gross amount has been taken into account. Since

VRS,J & JUD,,J WP No. 7581 of 2017 the petitioner could not produce the break-up, the respondents appear to have proceeded to tax the gross amount. Therefore, we are of the considered view that the matter could be remitted back to find out the portion that is attributable to service and the portion that is attributable to the sale of materials.

6.

In view of the above, the Writ Petition is allowed, the impugned order is set aside, and the matter remitted back to the 3rd respondent. The petitioner shall file his objections to the show-cause-notice on or before 26.04.2017. Thereafter, the 3rd respondent shall fix a date for personal hearing. On that date, the petitioner shall produce the records to show the quantum as well as the value of materials sold and delivered, together with proof of having paid any value added tax, if leviable on those items. Thereafter, the 3rd respondent shall pass orders afresh.

Consequently, miscellaneous petitions if any pending in the writ petition shall stand dismissed. No order as to costs. __________________________ V. RAMASUBRAMANIAN, J ______________ J. UMA DEVI, J.

27th March, 2017 cbs

VRS,J & JUD,,J WP No. 7581 of 2017 THE HON'BLE SRI JUSTICE V. RAMASUBRAMANIAN  AND THE HON'BLE MS. JUSTICE J. UMA DEVI Writ Petition No. 7581 of 2017 (Allowed) 27th March, 2017 cbs