BOBAN JOHN Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, who is a contractor, and who had undertaken works for the Kerala State Electricity Board [hereinafter referred to as the 'KSEB'], is aggrieved by Ext.P1 communication issued to him by the 3rd respondent, directing him to pay an amount of Rs.9,77,678/- towards alleged service tax, cess and interest dues pursuant to the liability declared by the petitioner in the returns submitted for the period from October, 2015 to March, 2017. It is the case of the petitioner in the writ petition that, the liability to service tax in respect of the works done for the KSEB had to be discharged by both the service provider and the service receiver, and, in that sense, the petitioner was liable to pay 50% of any liability to service tax, and the service receiver, namely, KSEB, was obliged to discharge the balance liability to the Central Excise Department. It is the case of the petitioner that, although he had filed the returns for the period from October, 2015 to March, 2017, indicating a liability of Rs.9,23,725/-, he did not pay the said amount of tax along with the return. An amount of Rs.1,00,000/-, however, was subsequently paid to the Department, and it was thereafter that the petitioner realised that even this amount did not have to be paid, since, according to the petitioner, the works done for the KSEB would qualify for exemption under the Mega Exemption Notification No.25/2012 dated 20.6.2012.

(2.) It is the further case of the petitioner that, the Board also erred in effecting the payment of their share of 50% of the tax liability, since, the service rendered by the petitioner to the KSEB was covered by the Mega Exemption Notification referred above. It is submitted that, by Ext.P12 application submitted before the 4th respondent, the petitioner has also claimed refund of the amount of Rs.1,00,000/- paid, within the period of limitation prescribed in the Statute for preferring the refund application.

(3.) I have heard the learned counsel for the petitioner, the learned Standing counsel for respondent Board and also the Standing counsel for respondents 3 and 4.