Case Law Details
Rama Colour Prints Vs Commissioner of Service Tax (CESTAT Mumbai)
The case of Rama Colour Prints vs. Commissioner of Service Tax, as heard by the CESTAT Mumbai, revolves around a critical issue of disclosure in tax returns and the applicability of the extended period of limitation. The case involves the payment of service tax by Rama Colour Prints, a provider of photography services, under the Finance Act, 1994. The appellant paid service tax based on their interpretation of the law, but the tax department raised objections, resulting in a legal dispute.
The Case Details:
Rama Colour Prints, engaged in providing photography services as per Section 65(79) of the Finance Act, 1994, filed ST-3 returns and paid service tax during the period from October 1, 2008, to March 31, 2013. They declared their gross turnover and paid service tax on 30% of this gross amount, while VAT was applied to the remaining part of the total bill.
However, a subsequent investigation by the revenue department revealed a discrepancy. The total tax components shown on invoices did not match the value declared in the ST-3 returns. The department claimed that Rama Colour Prints was required to pay service tax on the entire value of the service.
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