TaxTMI 
TaxTMI 
2026 (3) TMI 414
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.... works carried out by the petitioner as a sub-contractor of the Ms. CPWD related to the construction of structures etc, in the Acharya Nagarjuna University, Central University of Tamil Nadu and Indian Maritime University, Chennai. The Assistant Commissioner had thereupon taken note of exemption notification No. 25/2012-ST, dated 20.06.2012 and had held that the main contract work executed by M/s. CPWD would be exempted from sales tax by virtue of entry No. 12 in this notification. Thereafter, the Assistant Commissioner had given a finding that even services by a sub contractor, provided to another contractor whose services are exempt, would also have to be exempted by virtue of entry No. 29(h) in the notification, dated 20.06.2012. On this basis, the Assistant Commissioner dropped all further proceedings, by way of an Order dated 30.03.2019. Aggrieved by this order, the department had moved an appeal bearing No. 01/2019(VSP)ST(D), before the Commissioner (Appeals), Guntur, central tax & customs. The Commissioner (Appeals) dismissed the appeal, filed by the department, by an Order dated 23.01.2020. In this order, the Commissioner took the view that entry No. 29(h) read with entry No....
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....dated 23.01.2020 and relied upon the Judgment of the Hon'ble Supreme Court of India, in the case of Union of India & Ors Vs. Kamlakshi Finance Corporation Limited 1992 Supp (1) SCC 443. II. Learned Senior Counsel would also contend that the Assistant Commissioner, in the impugned order, had given a specific finding that the works executed by the petitioner were works executed as sub-contractor to M/s. CPWD. In such circumstances, the Assistant Commissioner could not have arrived at any finding, that the non-filing of the documents by the petitioner was sufficient to hold that the petitioner had not demonstrated that these transactions are exempted transactions. 6. Sri Josyula Bhaskar Rao, learned Standing Counsel for CBIC, appearing for the respondents, would on the other hand contend that the findings for the earlier assessment period are not binding and would not amount to res judicata, for subsequent years, under the taxation law. He would further submit that the Assistant Commissioner had distinguished the turnovers, under the impugned assessment proceedings, from the turnovers relating to the earlier period. He would submit that this differentiation is based on the....
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.... d) [***]; e) [***]; f) selling agent or a distributor of SIM cards or recharge coupon vouchers, g) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;) (ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause(g). (gb) business facilitator or a business correspondent to an insurance company in a rural area; or] h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;" 9. The findings of the Assistant Commissioner, in the impugned Order is that the turnover, considered in the impugned order arise out of the services provided by the petitioner to M/s. CPWD. 10. The works carried out by M/s. CPWD, as set out in the order itself in paragraph Nos. 8.1 & 8.2, would show that these works related to Kendriya Vidyalaya, Nagakudi, Tamil Nadu, as well as certain works executed for the Andhra Pradesh Endowment Department in relation to certain temples. Entry No. 12, in the notification, dated 20.06.2012, states t....
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.... who function under the jurisdiction of the Tribunal. The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the appellate authority is not "acceptable" to the department-in itself an objectionable phrase and is the subject matter of an appeal can furnish no ground for not following it unless its operation has been suspended by a competent court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. 7. The impression or anxiety of the Assistant Collector that, if he accepted the assessee's contention, the department would lose revenue and would also have no remedy to have the matter rectified is also incorrect. Section 35-E confers adequate powers on the department in this regard. Under sub-section (1), where the Central Board of Direct Taxes come across any order passed by the Collector of Central Excise with the legality or propriety of which it is not satisfied, it can direct the Collector to apply to the Appellate Tribunal for the determination of suc....