Petitioner challenged the show cause notice which seeks to levy Service Tax on the consideration received for sale of goods (electricity) in the form of capacity charges and late payment surcharge.
Service Tax —– The Petitioner challenged Notification No. 22/2014-ST dated 16th September, 2014 as violative of Article 14 of the Constitution of India and Rule 3 of the Service Tax Rules, 1994. The Petitioner challenged the proceedings as contrary to the Circular No. 1053/03/2017-CX dated 10th March, 2017 and Rule 10 of the Place of Provision of Service [POPS] Rules, 2012. The petitioner submitted that the impugned SCN sought to levy Service Tax on the consideration received for sale of goods (electricity) in the form of capacity charges and late payment surcharge. Electricity has been categorized as goods by the Supreme Court and so service tax cannot be demanded on the charges related to sale of goods (electricity).
Held that:- The Hon’ble High Court issued notice. Directed that the matter be listed on 30th September, 2021.
Petitioner challenged the show cause notice which seeks to levy Service Tax on the consideration received for sale of goods (electricity) in the form of capacity charges and late payment surcharge.
Service Tax —– The Petitioner challenged Notification No. 22/2014-ST dated 16th September, 2014 as violative of Article 14 of the Constitution of India and Rule 3 of the Service Tax Rules, 1994. The Petitioner challenged the proceedings as contrary to the Circular No. 1053/03/2017-CX dated 10th March, 2017 and Rule 10 of the Place of Provision of Service [POPS] Rules, 2012. The petitioner submitted that the impugned SCN sought to levy Service Tax on the consideration received for sale of goods (electricity) in the form of capacity charges and late payment surcharge. Electricity has been categorized as goods by the Supreme Court and so service tax cannot be demanded on the charges related to sale of goods (electricity).
Held that:- The Hon’ble High Court issued notice. Directed that the matter be listed on 30th September, 2021.