Service Tax is an enigma. It has shown to the authorities that you could tax the largest economy without having a codified regulation. It has led to the tax administrators that it’s far higher to tax without a regulation as regulation reduces your discretion. The only victim is the tax assessee; however, they may be there to suffer in any case, law or no restriction.
The administration of Service Tax display advert-holism at its zenith. In this ad, holism, the method of accumulating Service Tax on Goods Transport Operator, is an excessive factor in enforcing uncertainty- I even have heard uncertainty of regulation is the most extraordinary cruelty. The service tax administrator has forgotten this cliche.
Article 265 of the Constitution said that no tax should be levied or amassed shop using the authority of law. No person can argue that provider tax is being accumulated without the rule of law- after all, there are numerous clauses of the Finance Act of multiple years authorizing levy and collection of provider tax. So what if these clauses are not clean-Article 265 did not check with clear law. So what if those clauses aren’t specific- Article 265 did no longer discuss certain rules. Thus I am sure that the administration of carrier tax isn’t violating any word of Article 265 of the Constitution. And the spirit of any regulation is or turned into in no way essential to the tax directors.
And then, I observed an article written through a found out tax administrator in this esteemed journal (GTA-Liability to pay Service Tax and Credit thereon, 2006 (2) STR J147]. The found out creator argued that liability to pay carrier tax is not the most straightforward criterion to avail credit. I can not agree more. But I differ from him on numerous counts. This paper is an attempt to study the prison provision (howsoever uncertain they are) with appreciate to Cenvat Credit on provider tax paid on outward freight provider- that is freight on transportation of goods after clearance from manufacturing facility gate, after the area of removal, after the Central Excise responsibility has been paid.