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II. Service Tax Caselaw:
1. M/S
Bhagwati Security Services (Regd.) Vs. UOI & Others, Writ Tax No. -
870 of 2007, Order Dated 16.01.2013, High Court Allahabad
Whether Service provider can claim reimbursement of service tax paid by him on the services provided to the service receiver.
There is an
agreement between the petitioner and the respondent i.e. B.S.N.L. under
which the petitioner was required to provide security services to the
respondent. Subsequently service tax was demanded from the petitioner
which has been deposited. The petitioner applied before the respondent
for reimbursement of the service tax but the request has been denied by
contending that reimbursement of the service tax was not contemplated in
the service agreement.
In view of the
agreement and the provisions of the relevant statute, Hon’ble High
Court of Allahabad held that service tax is a statutory liability. It is
a tax which is required to be collected by the service provider from
the person to whom service is provided, and thereafter to be deposited
with government treasury within the prescribed time. Thus, essentially
the statute is being imposing the tax upon the person to whom service
is being provided, and the service provider is merely a collecting
agency. The writ petition is allowed and the respondent is directed
to make reimbursement of service tax to the petitioner without further
delay.
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