The Vikarabad Roads and Buildings Department contests tax authorities’ directives

In a lawsuit filed in the Telangana High Court, the executive engineer of the Vikarabad district’s department of roads and buildings contested the decisions made by the assistant commissioner of central tax, central excise and service tax, Sangareddy division, Medchal GSTC Commissionerate.

The demand for service tax of Rs 26,07,568 from August 2013 to March 2016 and penalties is the central point of contention in this issue. The petitioner claimed that the orders to freeze the department’s bank accounts at the main branch of State Bank of India in Vikarabad and the Axis Bank branch in Vikarabad were arbitrary, unfair, and without authority. According to the R&B department, it qualified for a service tax exemption between July 1, 2012, and June 30, 2017.

A division bench is set to hear the writ petition on Thursday.