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April 2024

Service Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang, Chartered Accountants
Reading Time 2 mins

SUPREME COURT

29 Commissioner of Central Tax vs. IJM (India) Infrastructure Ltd.

2024 (15) Centax 309 (SC)

Date of Order: 2nd February, 2024

Service tax cannot be demanded for previous period outstanding receivables from associate enterprises where the law was amended prospectively.

FACTS

The respondent was engaged in providing different categories of taxable services. Pursuant to amendment in section 67 of Finance Act, 1994 and Rule 6 of Service Tax Rules, 1994, a SCN was issued demanding service tax amounting to ₹8,98,61,292 against receivables shown in books of accounts as outstanding from its associate enterprise under section 73(1) along with interest under section 75 and penalties under sections 76 and 78 of Finance Act, 1994. Also, a reply filed by the respondent was not considered and an Order-in-Original confirming tax demand along with interest and penalties was issued. Aggrieved, an appeal was filed by the respondent before the Tribunal and the same was allowed in favour of the respondent and an order demanding tax, interest and penalty were set aside. Being aggrieved by the Tribunal’s order, Revenue

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