Submission of Service Tax paid challans / Copies of returns to claim Service Tax charged in Invoices

[KOHINOOR MITRA]

A Service vendor is Registered with Service Tax authrorities for provision of services like Works contract , Repairs & Maintenance and the like. A ciustomer awards a servcie job on the contractor. When the contractor claims over and above the service charges  against Service rendered to the customer to the extent of Service Tax , the customer insists on submission of Service Tax paid challns and a CA Certificate towards confirmation of Service Tax paid on the invoice raised. Over and above the last filed ST Return is also demanded .

My query is whether the above demand by the customer legally tenable ? Is there any decided cases or law in favour or against the contention of the customer ?

Kohinoor  Mitra.

Mobile No: 98303 09211

AI Summary

Cenvat Credit verification: recipients may seek proof that service tax was paid before claiming input credit, as a compliance safeguard.
No statutory provision generally obliges a registered service provider to furnish paid service tax challans or returns to customers, though under the CENVAT Credit regime the recipient bears responsibility to verify that tax for which input credit is claimed has been paid; this justifies recipients seeking documentary assurances as a compliance measure, while suppliers may raise confidentiality and commercial objections and retain only statutorily required records.