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Joint Development Agreement
Service Tax – joint development agreement – land owner-petitioner seeking to declare CBEC circular No.151/2/2012 and TRU recommendations as unconstitutional and ultra vires – claim of service tax & VAT by land developer from land owner on the basis of the provisions of the Finance Act, 1994, the scope of the circulars – maintainability of writ petition – locus standi of service recipient to challenge levy of service tax
HELD - the writ petition is not maintainable, in as much as the law makes the service provider liable to pay service tax. It is always open to the service providers either to pass on the burden to the recipient of the services or not to pass it on - The contention that the person, to whom the burden of tax is ultimately passed on, is entitled to challenge a levy, if accepted, would lead to disastrous consequences.