Services to Govt: Karnataka HC remands Service Tax matter for Submission of Documents [Read Order]

The Karnataka High Court has remanded a Service Tax matter, involving services provided to the government, for the submission of additional documents.

The contention of the assessee that insofar as the Assessment Year 2015-16, the order includes Sale of Goods which is outside the purview of Service Tax and insofar as Assessment Year 2016-2017, services is rendered to the Government and is exempt.

It was submitted that during the course of proceedings before the assessing authority, the petitioner had sought for extension of time to submit an explanation for the apparent difference between the revenue declared in the Income Tax Return and the ST-3 returns. It is averred that due to illness of the petitioner, the said explanation and documents proposed to be filed before the authority in support of the case of the assessee could not be filed.

The bench noticed that in the assessment order, the authority has proceeded taking note of absence of explanation. However, in the light of the nature of contention raised as noticed above for the year 2015-2016 wherein counsel for the  assessee would submitted that sale of goods is included and as regards assessment year 2016-2017, services made to the Government is also brought within the Service Tax net, which assessee  claims to be exempt and requires consideration, it would meet ends of justice to relegate the matter to the authority after setting aside the order at Annexure-A with further liberty to the petitioner to participate in the proceedings and furnish additional explanation and documents as requested in their letter dated 18.12.2023. Accordingly, the bench consisting of Justice Sunil Dutt Yadav held that the order at Annexure-A was set aside, and the matter is disposed of, relegating it to the respondent to continue proceedings after affording an opportunity, taking note of the assessee’s request as observed.

To Read the full text of the Order CLICK HERE

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