Service Tax - Huge Win for Revenue before CESTAT
IN a path breaking judgement, a Division Bench of the CESTAT upheld every plea of the Revenue and dismissed the assessee's appeal on all counts including penalty under both the sections – 76 and 78.
The Tribunal held, Services covered under works contract service taxable even prior to 1.6.2007 – Section 65(105) (ZZZZa) is more like heading 98.01 of India Customs Tariff - Penalty under both section 76 and 78 imposable.
The Tribunal even relied on a decision of the Tribunal which was set aside by the High Court and held that another order of the High Court is not a binding precedent as the High Court had not explained as to how prior to 1.6.07, the type of contracts mentioned in Explanation to Section 65(105) (ZZZZa) were not taxable under Section 65 (105) (ZZd), 65 (105) (ZZq) or 65 (105) (ZZZh).