Court No. – 33
Case :- WRIT TAX No. - 870 of 2007
Petitioner :- M/S Bhagwati Security Services (Regd.)
Hon'ble Sushil Harkauli,J.
Hon'ble Naheed Ara Moonis,J.
Heard learned counsel for the petitioner and the learned counsel appearing on behalf of
Only reason given for denying the reimbursement of the service tax is that the same was not contemplated in the service agreement. Having gone through the agreement and the provisions of the relevant statute, we find that service tax is 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. In that view of the matter, the writ petition is allowed. The respondent no.2 is directed to make reimbursement of service tax to the petitioner without further delay.
Order Date :- 16.1.2013