ERA INFRA ENGINEERING LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) ALLOWED , subject to all just exceptions. CM stands disposed of. WP (C) No. 3048/2008 Rule D.B. CM No. 5864/2008(Stay) The challenge in the writ petition is to the Explanationn to Seriall No. 7 in the Notification being General Exemption No. 10 dated 1st March, 2006.

(2.) ACCORDING to the Petitioner, for the purposes of levying Service tax the Respondents can only include the service element provided for in the contract that the Petitioner enters into with other parties, in this case the other contracting party being NTPC. It is the case of the Petitioner that materials that are supplied free of cost by NTPC to the Petitioner for the purposes of completing the contract cannot be included in the gross amount charged by the Petitioner for the purposes of determining the Service tax payable.

(3.) ACCORDING to the Petitioner, the 'gross amount charged' has been defined in Section 67(3) of the Finance Act, 1994 as follows: gross amount charged' includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment.