2019 (8) TMI 9

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....said impugned orders. 2. The petitioners are tenants of shop rooms constructed by the 1st respondent-Panchayat. They have executed Lease Deeds with the Panchayat and have renewed the same from time to time, as evidenced by Exts. P1 to P5. The 1st respondent has now issued notices to the petitioners requiring them to pay service tax for the period from 01.06.2007 to 31.03.2012. The said demand is illegal and unsustainable, contend the petitioners. 3. Respondents 1 and 2 filed counter affidavit. According to respondents 1 and 2, the petitioners are liable to pay service tax along with monthly rent. The Government ordered to collect service tax from the petitioners. The Panchayat received the order only in December, 2011. Therefore, s....

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....ce Co. Ltd. v. Insurance Ombudsman and others [2011 (4) KLT 397] = 2012 (28) S.T.R. 453 [ker.] and in Rashtriya Ispat Nigam Limited v. M/s. Dewan Chand Ram Saran [(2012) 5 SCC 306]. 6. The counsel for the respondents, on the other hand, argued that though the Panchayat is the assessee to service tax, it has to be recovered from those who utilise the services. Otherwise, the burden of service tax will fall on common citizens, since the Panchayat is a Local Self Government Institution. The direction of the Deputy Director of Local Fund Audit, is therefore legal and justifiable. 7. I have perused the pleadings and heard the counsel appearing on behalf of the petitioners and the respondents. 8. As per Clause 2(2) of Exts.P1 to P5 agree....

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....sclose the prevailing statutory duties and levies at the time of transaction, is not entitled to claim such taxes and levies from the consumer at a later stage during the course of continuing service. The Division Bench held that multinational companies offering services to public including rural mass have a duty to disclose the real price at which the service is provided. I do not think, the said Division Bench judgment can be of any use to the petitioners in this case. Because, generally a contract of insurance is a contract of adhesion, where the terms and conditions of the contract are set by one of the parties and the other party has little or no ability to negotiate. The Division Bench judgment dealt with such a form of contract. 1....