- Is it a fact that the manufacture of goods is entitled for the credit of amount equivalent to the amount of service tax paid by him on total amount of payment to the individual labour contractor appointed by him for selling his duty paid goods.
- Whether such Govt. is manufacture ring units of goods or its labour contractors shall have some objective/idea/reason to evade the amount of service tax specially in the event when the audit team of the department also had identified the total payment to labour contractor from its books during the annual audit of the unit on 4-9-2007 or in the year 2008.
- Whether non issue of notice within a period of 18 months from the date of audit shall debar the department to issue show cause notice and shall amount the same as time bar.
- Whether there are some judgments by Tribunal/honorable High Court/Supreme Court of India on the above issues.
Manufacturer's Service Tax Credit on Labor Contractors, Notice Time Limits, and Tribunal Judgments Discussed A discussion forum addresses service tax issues related to a manufacturing unit and its labor contractors. The main queries involve whether the manufacturer can claim credit for service tax paid to labor contractors, the implications of not issuing a notice within 18 months post-audit, and whether judgments exist on these matters. Responses clarify that notices issued after 18 months are time-barred unless fraud is involved, in which case they can be issued within five years. The discussion also touches on the responsibilities of the Indian Oil Corporation (IOCL) regarding service tax and the applicability of tribunal judgments. (AI Summary)
Service Tax
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