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Journalism of Courage
The Delhi High Court on Thursday refused to issue a stay on proposed levy of 14 per cent service tax on alcohol produced for human consumption by manufacturers on a job contract basis.
The Centre had earlier this year passed Finance Act amendment which removed protection given to alcoholic liquor from service tax on manufacture.
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Appearing before the court of Justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva, additional solicitor general Sanjay Jain argued that the Centre had taken the decision to impose tax because the manufacture of alcohol using the ingredients, label or the licence of the primary licence holder was a “service.”
“If primary manufacturer is selling the liquor directly there is no service tax,” said the ASG.
