Commissioner of Central Tax Vs Indure (P) Limited (Delhi High Court)
Delhi High Court held that VAT Act and the Finance Act are disparate in character as far as levy and collection of tax is concerned. Thus, demand based on comparison of returns filed under VAT Act and Finance Act is erroneous. Accordingly, appeal of department dismissed.
Facts- This is an appeal challenging the impugned order dated 30th July,2024 by which the appeal of the Department has been dismissed by Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi.
The short question that arises in this matter is whether the Respondent was liable to pay any service tax on the differential amount which was reflected in the returns filed under the Value Added Tax Act, 2005 and under the Service Tax Act, 1994.
Conclusion- It becomes unequivocally clear that VAT Act and the Finance Act are disparate in character as far as levy and collection of tax is concerned. Consequently, comparison of return filed under both the Acts is erroneous. Accordingly, raising of demand till 30.06.2011 on the basis of difference in value between the WCT Returns and ST-3 returns is totally off base and unsustainable.
Held that the only question is whether any additional liability is to be fastened on the Respondent or not. Both the original adjudicating authority and the CESTAT has held clearly that the difference in the amount has been satisfactorily explained. In view thereof, this Court is of the opinion that the impugned order does not warrant any interference as no substantial question of law arises for consideration of this Court. The appeal is accordingly dismissed on said terms.
