Service Tax

[Asked by Guest]

1. 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.

2. 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.

3. 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.

4. Whether there are some judgments by Tribunal/honorable High Court/Supreme Court of India on the above issues.

AI Summary

Statutory time bar on service tax notices may preclude late show-cause issuance absent allegations of fraud or collusion.
Whether payments by a principal to an independent contractor permit service tax credit and whether delayed departmental show-cause notices are barred by a time bar absent allegations of fraud; factual determination of payment character (service remuneration versus pure agent reimbursement), need for full particulars from the principal, deductibility of contractor expenses against receipts, and applicability of tribunal and high-court precedents to adjudicating authorities.