𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗮𝗻𝗱𝗶𝗴𝗮𝗿𝗵 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝗼𝗳 𝗧𝗗𝗦 𝗳𝗿𝗼𝗺 𝗚𝗿𝗼𝘀𝘀 𝗩𝗮𝗹𝘂𝗲 𝗳𝗼𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗶𝗼𝗻 📢 The Tribunal ruled: "The amount of TDS paid is not includable in the gross value for the purpose of payment of service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s ITD ITD Cem Joint Venture 𝗜𝘀𝘀𝘂𝗲: Whether TDS paid by the appellants should be included in the gross amount for the purpose of calculating service tax?

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: A show-cause cum demand notice was issued on 02.09.2011, demanding service tax for the period 2008-09 to 2010-11. It was alleged that the appellants had not included the TDS amount in the gross value for discharging service tax under the Reverse Charge Mechanism. The demand was confirmed, and penalties were imposed.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that TDS paid is not includable in the gross value for service tax, citing similar decisions in the TVS Motor Company and Indian Additives Ltd. cases. No evidence of tax evasion was found, and the extended period was not invoked. The appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s ITD ITD Cem Joint Venture vs. The Commissioner of Central Excise, Rohtak 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼.55935 Of 2013 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 30 January 2024

📜 This ruling clarifies that TDS payments made to foreign service providers should not be included in the gross value for service tax calculations.