Sales tax payment is not substitute for service tax liability

ž  It also cannot be disputed that even if sales tax is wrongly remitted and paid that would not absolve them from the responsibility of payment of service tax, if otherwise there is a liability to pay the same.

ž  If the article is not susceptible to tax under the Sales Tax Act, the amount of tax paid by the assessee could be refunded as the case may be or, the assessee has to follow the law as may be applicable. But we cannot accept a position in law that even if tax is wrongly remitted that would absolve the parties from paying the service tax if the same is otherwise found payable and a liability accrues on the assessee.

ž  [Para 18 of Supreme Court Judgment in  Idea Mobile Communication Ltd [2011] 12 taxmann.com 307 (SC) AUGUST  4, 2011]