AdvertisementITD ITD Cem Joint Venture Vs Commissioner of Central Excise (CESTAT Chandigarh)The CESTAT Chandigarh allowed the appeal filed by M/s ITD ITD Cem Joint Venture against the demand of service tax on TDS amounts paid to the Income Tax Department under Section 195A of the Income Tax Act, 1961. During audit, the Department found that the appellants had initially discharged service tax under Reverse Charge Mechanism on services received from foreign suppliers, including amounts paid towards TDS, but subsequently stopped including TDS while calculating service tax. A show-cause notice dated 02.09.2011 demanded service tax of Rs.1,15,23,010/- for 2008-09 to 2010-11. The Tribunal considered whether TDS paid under Section 195A should be included in the gross amount for calculating service tax under Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 read with Section 66A of the Finance Act, 1994. On limitation, the Tribunal found that the show-cause notice and impugned order did not establish suppression, misstatement or similar ingredients with intent to evade service tax.