Commissioner Of Central Tax Vs JMD Ltd. (Delhi High Court)
Delhi High Court held that in view of Section 35L of the Central Excise Tax as the question of law involved is regarding the taxability of the service, the appeal would lie to the Supreme Court and before High Court. Thus, the present appeal is rejected.
Facts- The case of the Respondent-Assessee was that it had developed projects at Ludhiana and Gurugram. Show Cause Notice dated 14th October, 2014 was issued by the Director General of Central Excise Intelligence raising a demand of service tax on the premise that the services provided by the Respondent-Assessee would constitute ‘commercial or industrial construction service’ as defined u/s. 65 (25b) of the Finance Act, 1994 which is made taxable u/s.65 (105) of the said Finance Act.
This was disputed by the Respondent on the ground that the collaboration agreement was not for commercial or industrial construction service and these were composite work contracts involving transfer of goods and services. Thus, the services would qualify as ‘works contract’. CESTAT accepted the said contention of respondent.
Conclusion- Held that since the issue is one of taxability, the decision of CESTAT would have to be assailed before the Supreme Court in view of Section 35L of the Central Excise Tax as the question of law involved is regarding the taxability of the said service.
