Service Tax Non-Payment Due to Uncertainty Not Fraud or Willful Misstatement: Delhi HC

Commissioner of Central Tax Vs Simplex Infrastructure Limited (Delhi High Court) The Delhi High Court dismissed an appeal filed by the Commissioner of Central Tax, CGST Delhi East, challenging an order by the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The core issue was whether the department could invoke the extended period of limitation under Section 73(1) of the Finance Act, 1994, to demand service tax from Simplex Infrastructure Limited, a sub-contractor. The department argued that the sub-contractor’s non-payment of service tax, despite a 2007 circular clarifying th...