AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2020 (3) TMI 351
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Hindustan Paper Corporation Limited, a Government of India Enterprise. The winding up proceedings of the 3rd respondent company has been initiated and the 4th respondent herein was appointed as the Liquidator. The petitioner had entered in to an agreement with the 3rd respondent in the year 2015 for up-keeping of various plants. As per the terms of agreement, the petitioner has remitted tax for 42 items for the various services mentioned therein. Similarly, the petitioner had also entered in to an agreement with the 3rd respondent for 20 items of services. As per the terms of the contract, the petitioner is not remitting tax for 20 items. The said agreements were subsequently extended from time to time. In the year 2017, when Goods a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Exhibit P2 work contract. The petitioner was under the bonafide belief that the respondents 3 and 4 have strictly complied the terms and conditions of the work contracts and are paid GST in respect of 20 items stated in Exhibit P2 work contract without any fail. However, now the 5th respondent has issued Exhibits-P3 and P4 notices under Section 122 of the State Goods and Services Act demanding penalty for the year 2017-2018 and 2018-2019. Exhibits P3 and P4 have been issued by the 5th respondent overlooking the liability of the respondents 3 and 4 to remit the GST for the said periods in terms of work contract. However, the 5th respondent is of the opinion that unless it is clarified by a court of law, they are unable to exempt th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and 4 has been shifted as per Exhibit-P1 contract. However, in the absence of such clause in Exhibit-P2 contract, it cannot be said that the burden of the respondents 3 and 4 has been shifted to the petitioner. (c) That Section 51 (2) of the Central Goods and Services Tax Act, 2017 "the amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed." Therefore, being the deductor (service recipient) the 3rd respondent is bound to pay GST to the Government. Hence the issuance of Exhibits-P3 and P4 issued to the petitioner (service provider) ignoring the terms of work contracts are illega....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Heard Sri.M.P.Prajeesh, learned counsel appearing for the petitioner, Smt.M.M.Jasmine, learned Government Pleader appearing for the respondents 1 and 5, Sri.V. Krishna Menon, learned counsel appearing for R3 and Sri.P.Vijayakumar, learned Assistant Solicitor General appearing for R2, Union of India. In the nature of the orders proposed to pass in this petition, notice to R4 will stand dispensed with. 5. The respondent No.5, who has issued impugned Exts. P3 and P4, was directed to furnish instructions. Today, when the matter has been taken up for consideration, Smt.M.M.Jasmine, learned Government Pleader appearing for respondents 1 and 5 would submit on the basis of instructions of the 5th respondent that Exts. P3 and P4 are only notices....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2, the 3rd respondent being the service recipient is legally obliged to remit GST in respect of the said 20 services in compliance with the terms and conditions of Ext.P2 works contract. 8. In that regard, Sri.M.P.Prajeesh, learned counsel appearing for the petitioner would place strong reliance on the judgments of the Apex Court in Rashtriya Ispat Nigam Ltd v. M/s.Dewan Chand Ram Saran [2012 (5) SCC 306] that nothing in law prevents the statutory assessee from entering into agreement with another party that burden of any indirect tax arising out of obligations of the promisor under the contract would be borne by promisor and the contractor is liable to bear service tax in discharge of his obligations under contract and that therein it h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he 5th respondent will have to issue notices to the petitioner as well as to R3 (M/s. Hindustan Newsprint Ltd.) and R4 (who is stated to be the liquidator of R3 Company) and the 5th respondent in its notice may direct the 4th respondent to give a report regarding the factual aspects raised by the petitioner on the basis of Ext. P2 and also the constitutional contentions raised by the petitioner thereon as aforementioned. In that regard, it is also ordered that for the purpose of convenience and easy reference, the counsel for R3 will ensure that a copy of the memorandum of this W.P.(C.) along with the copy of this judgment is forwarded to R4, without any further delay, so that R4 can give written submissions in the matter to R5, without any....