INDUCTOTHERM (INDIA) P. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners have challenged two show-cause notices dated October 15, 2004 and November 9, 2004 annexed at annexure-H collectively to the petition in the following factual background :

(2.) Counsel pointed out that the apex court in the case of Laghu Udyog Bharti v. Union of India, 1999 115 STC 616, in the context of goods transport agents held that in the absence of any charging section, liability of collection of service tax on such service cannot be shifted on the service recipient.

(3.) Counsel relied on the decision of the Division Bench of this court in the case of CST v. Quintiles Data Processing Centre (I) P. Ltd.,2012 54 VST 398, wherein relying on the decision of the apex court in the case of Laghu Udyog Bharti v. Union of India, 1999 115 STC 616and other decisions of the Bombay and Delhi High Courts, this High Court took a view that in the absence of any charging section in the parent Act, on the basis of rule 2(1)(d)(iv), service tax cannot be collected from the service recipient.