TaxTMI 
TaxTMI 
2001 (10) TMI 2
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.... 4th September, 1997 petitioner received service tax from its clients in July and August, 1997. In September, 1997 the petitioner received Rs. 3,95,573/- by way of service tax from some of its clients which the petitioner deposited on 3rd October, 1997. The petitioner No. 1 also filed first quarterly service tax return on 14th October, 1997 pertaining to the period July to September, 1997. Subsequent thereto, petitioner from time to time collected service tax with the department and also filed quarterly returns. 3. According to the petitioner, although some of the clients of the petitioner paid service tax, many of them have refused to pay service tax to the petitioner No. 1. Accordingly, the petitioner No. 1 has filed returns in respect o....
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....e said amount so deposited by the petitioner. 7. Dr. Pal appearing on behalf of the petitioner contended that in the definitions of various types of service providers appearing in Section 65 the term "firm" has been used only with respect to the consulting engineer in Section 65(13). In all the other cases either the term person or commercial concern has been used. The term "person" like the term "firm" has neither been defined in the Service Tax Laws nor in the Central Excise Act. The term "person" has been defined in Section 2(42) of the General Clauses Act, 1897 to include any company or association or body of individuals whether incorporated or not. In other words, in the case of all service providers other than the consulting engineer....
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.... one on the part of the legislature and no effort or attempt can be made to do any violence to the same so as to include the term "company". He further placed reliance on a decision reported in 1961 41 ITR 425 (C.A. Ibrahim v. I.T.O.) and contended that in interpreting a fiscal statute the court cannot proceed to make good deficiencies if there be any, the court must interpret the statute as it stands in the case of doubt in a manner favourable to the tax payer. 9. He further contended that the explanation to Section 81 provides that for the purpose of the said section company means, any body corporate and includes a firm and other associations of individual. Therefore, without explanation a firm cannot include a company nor a company can ....
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....ition clause cannot apply to limited company but only to partnership firm cannot be correct interpretation for the following reasons :- (a) The dictionary meaning of the word "Firm" does not confine it only to partnership. (b) Black's dictionary (5th edition) defines "Firm" as follows : - Firm - "Business entity or enterprise". Shorter Oxford English Dictionary Vol. I defines "Firm" - Firm the style or name under which a commercial house transact business; In view of the various provisions of the Act and its purpose and object the word "Firm" cannot be given a narrow and restricted meaning. The tax is on the service rendered and any person rendering service of advice, consultancy or technical assistance in any manner in one or....
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....e unit under the Act. 15. After considering the facts and circumstances of this case I do not have any hesitation to accept the contention of Mr. Roy Chowdhury and express the same view as has been expressed by their Lordships in "V. Shanmughavel (Dr.) v. Commissioner of C. Ex., Chennai-II" reported in 2001 (131) E.L.T. 14 (Mad.) and 2001 (130) E.L.T. 726 (Kar.) (Tata Consultancy Services v. Union of India) and I do not have any hesitation to accept the opinion expressed by their Lordships in the said judgment and held that "every person provides this service which expression includes natural persons as well as juristic persons and further held that the Court made no distinction between different categories of service providers, be they in....