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Service Tax - Case Laws
Showing 61 to 80 of 127 Records
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2013 (6) TMI 466
Cenvat Credit - input services - Advertising Services, Food Pass Services, Security Services etc - Held that:- In respect of most of the input services except in the case of food pass, the services are necessary for acquiring and utilizing their business assets namely people and computers - credit allowed.
Food pass services - Held that:- as the manner in which these food passes are utilized is not a matter which can be clearly established - Without such information it is not possible to come to a conclusion that there was a nexus between the food passes and the business process of the respondent. Moreover this is essentially in the nature of a payment of a perk to the employee rather than as an input service for business - credit denied.
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2013 (6) TMI 465
Appeal by Revenue before CESTAT - maintainability - Held that:- an identical issue was before the Hon'ble High Court of Gujarat in the case of Stovec Industries Limited [2013 (1) TMI 72 - GUJARAT HIGH COURT], wherein the Hon'ble High Court vide judgment dated 10.7.2012 applied the Circular dated 17.08.2011 for the issue which was decided by the Tribunal [2011 (3) TMI 1099 - CESTAT, AHEMDABAD] and against which the Revenue had filed appeal before issuance of Circular.
In the present case the amount involved in this appeal is only Rs. 2,52,146/- - Appeal filed by revenue dismissed.
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2013 (6) TMI 447
Sponsorship of cricket match - T-20 matches under the IPL banner - sports event - Held that:- In our considered view the reasons recorded by the adjudicating authority are misconceived and unsustainable. Under the agreement with GMR the appellant had sponsored (for the relevant period) the Delhi Daredevils team which was owned by GMR (under a franchise agreement with BCCI/IPL Delhi Daredevils team was sponsored in the context of the participation of this team in the T-20 league matches. The several rights accruing to the appellant under the sponsorship agreement (adverted to above) clearly indicate that sponsorship was neither of BCCI - IPL; nor GMR, the sponsorship was clearly of the GMR owned Delhi Daredevils team in relation to participation of such team in the IPL T-20 cricket tournament. The enumerated bouquet of benefits accruing to the appellant under the agreement such as printing; player's appearances; motorcycle display; merchandise; motorcycle for promotion; and participative rights in prize presentation; championship tournaments; celebrity events; website/blog entitlement; and marketing plans by GMR, clearly establish that the sponsorship is of the GMR owned Delhi Daredevils team in relation to its participation in the T-20 tournament.
The sponsorship agreement is in our considered view a clear commercial transaction, the underlying purpose being the assumption that since BCCI-IPL-T-20 matches generate huge public viewership, either directly at the venues or through audio visual and print media as well, the appellant's association with the T-20 sports event through Delhi Daredevils team would show case the appellant's presence in its core business as a manufacturer of two wheeler motorbikes.
The conclusion recorded by the adjudicating authority, is in our considered view based on a fundamental misconception of the purpose of the sponsorship agreement. The conclusion that under the agreement appellant sponsored GMR, by predicating this inference on the singular circumstance that GMR was other party to the agreement, overlooking the terms and conditions of the agreement, constitutes a fatal infirmity of analysis, which invalidates the adjudication order.
The appellant is immune to levy and collection of service tax under Section 65(105)(zzzn) of the Finance Act, 1994. - Decided in favor of assessee.
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2013 (6) TMI 446
Commercial training or coaching service - ICFAI - vocational training - whether the assessees can claim exemption from service tax liability under Section 65(105)(zzc) read with the definition of commercial training or coaching under Section 65(26) and the definition of commercial training or coaching centre under Section 65(27) of the Finance Act, 1994 (as this provision stood during the period of dispute) in respect of the fees/charges collected by them from the students who underwent various courses offered by the assessees during the period of dispute. - Explanation added by the Finance Act, 2010 to Section 65(105)(zzc) of the Finance Act, 1994 with retrospective effect from 01/07/2003.
Held that:- the assessees were providing to their students training or coaching for a consideration and would ipso facto fall within the ambit of commercial training or coaching centre envisaged in the explanation to Section 65(105)(zzc) of the Finance Act, 1994. As this explanation has retrospective effect from 01/07/2003, the activities undertaken by all the assessees during the periods of dispute would get covered within the meaning of the phrase training or coaching imparted for consideration occurring in the text of the explanation. In other words, the explanation to Section 65(105)(zzc) of the Act has very wide scope to encompass the activities of the assessees and render them exigible to service tax under Section 65(105)(zzc) of the Act. In the result, the assessees have no case on merits.
Regarding vocational training - benefit of Notification No.9/2003-ST dt. 20/06/2003 - held that:- This plea was, admittedly, not raised at any stage before, even though the case of the assessees travelled upto the apex court. It is interesting to note that the learned counsel who sought to narrow down the scope of the apex court’s remand orders, nevertheless, wanted us to consider the above plea also. The dichotomy of arguments notwithstanding, we are of the view that the alternative plea can be considered in these proceedings in terms of the remand orders. As it is a virgin plea which has got to be substantiated by the parties concerned, the same will have to be examined by the adjudicating authorities concerned.
Regarding extended period of limitation - Held that:- Therefore, we hold that the proviso to Section 73(1) of the Finance Act, 1994 was rightly invoked in these cases. In any case, a major part of the demand on ISB is within the normal period and, in the case of other assessees also, a considerable part of the demand is within the normal period.
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2013 (6) TMI 445
Tour operator service - appellants have claimed that they have operated the vehicles from point to point and that such activities cannot come under the category of tour and that, they cannot be considered as Tour Operators. - Held that:- the claim of the assessee cannot be accepted in the light of the decision of the Tribunal vide in the cases of Ideal Travels & Others [2012 (7) TMI 707 - CESTAT, BANGALORE] - the activity is taxable.
Regarding exemption - Held that:- the appellants that the appellants are eligible for the exemption under Notification No. 20/2009. Therefore demand of service tax on this activity is also liable to be set aside.
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2013 (6) TMI 444
Mining services / activities - composite contract - effective date of levy - stay - Held that:- The contract is mostly in relation to mining activities and transportation of goods within the mines or within a factory though it appears that there is some activity relating to loading of coal in railway wagons and unloading of coal from railway wagons at which stage the goods may be considered as “cargo”. But we have not been able to find any separate amounts charged for such loading of cargo in railway wagons unlike the facts in the case of Gajanand Agarwal (2008 (6) TMI 163 - CESTAT KOLKATA).
Prima facie it appears to us that the activities were related to mining and transportation of goods within a mine or a factory. - it appears that for transportation activities service tax is also being discharged by the recipient of the service as per legal provisions in this regard.
In the case of activities sought to be classified under site formation service our prima facie view is that this activity is classifiable as mining activity and liable to service tax only from 1-6-2007 and such tax is being paid. - Prima facie case in favor of assessee - Stay granted.
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2013 (6) TMI 416
Stay - business auxiliary service - extended period of limitation - Held that:- As the appellant never took any steps for getting themselves registered with the department or to file service tax returns or to pay service tax, while rendering the taxable service to SWDL without disclosing this fact to the department, the extended period of limitation was rightly invoked against them. - Prima facie case is against the appellants - pre deposit ordered partly.
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2013 (6) TMI 415
Power of revisionary authority to levy penalty - revision u/s 84 - Held that:- question arising for consideration in this appeal is squarely covered against the appellant by a judgement of the Hon’ble High Court of Karnataka viz. Commissioner of Service Tax vs. Motor World [2012 (6) TMI 69 - KARNATAKA HIGH COURT] wherein one of the questions of law considered by the Hon’ble High Court was Whether the revisionary authority has jurisdiction to impose penalty for the first time when it has not been imposed by the adjudicating or assessing authority by invoking Section 80 - When the assessing authority, in its discretion has held that no penalty is leviable, by virtue of Section 80 of the Act, the revisionary authority cannot invoke its jurisdiction and impose penalty for the first time. - the same effect was given in the case of Sneha Minerals vs. Commissioner of Central Excise, Belgaum [2010 (7) TMI 387 - CESTAT, BANGALORE].
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2013 (6) TMI 414
Cenvat Credit - input services - canteen service - used in or in relation to manufacture - Hon'ble High Court of Gujarat in the case of Ferromatic Milacron India Ltd. [2010 (4) TMI 649 - GUJARAT HIGH COURT], has confirmed the view that credit of Service Tax paid on outdoor catering service provided in factory canteen is admissible since it is mandatory for the employer to provide canteen services to staff under Factory Act, 1948. It was held that the provision of catering service is a statutory requirement and is indispensable for the manufacturer to run the factory and such service can be said to have been indirectly used in relation to manufacture of final product and therefore covered under the definition of input service. - Decided in favor of assessee.
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2013 (6) TMI 389
Cenvat Credit - Input services - prior to date of registration - export of services - The second ground taken for rejection of the refund claim is that refund under Rule 5 of Cenvat Credit Rules, 2004 is permissible only if the dutiable goods are exported under bond or LUT. - Held that:- refund allowed.
Decision in the cases of J.R. Herbal Care India Limited v. CCE, Noida - [2010 (3) TMI 391 - CESTAT, NEW DELHI], CCE v. Drish Shoes Limited - [2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT] and Repro India Limited v. UOI [2007 (12) TMI 209 - BOMBAY HIGH COURT] followed.
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2013 (6) TMI 388
Cenvat Credit - Input services - commission agent services - Rule 2(l) of CCR - Held that:- the appellant has been taking the services of the Commission Agent for sale of the final products which is an activity relating to business. - Credit allowed.
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2013 (6) TMI 387
Condonation of delay - appeal by DIRECTORATE OF MARKETING AND INSPECTION (DMI) - Held that:- There is no explanation for such long gaps in between various actions of the applicant. The appreciation of the entire consequence of events, as reflected in the above application reflects upon the casual approach of the applicant and lapses on their part to take the matter seriously and to file the appeal within the limitation period. In spite of the fact that a draft appeal was vetted in or around July 2008, the actual filing of the same occurred on 17.8.2011 - no justifiable reasons, to condone such a huge delay in filing the present appeal. - Decided against the assessee.
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2013 (6) TMI 384
Sale of SIM Cards - bonafide belief - extended period of limitation - Held that:- following the decision in f Bharti Hexacom Ltd. Vs CCE Jaipur [2013 (6) TMI 369 - CESTAT NEW DELHI] levy of service tax for the normal period is confirmed annulling the demand relating to extended period of limitation. - Partly decided in favor of assessee.
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2013 (6) TMI 369
Sale of SIM Cards - bonafide belief - Held that:- Considering above fair proposition of appellant and also looking to the journey the litigations have traveled to reach to the finality, it would not be proper to impose penalty for disputed question of law involved in the appeal. Accordingly, this appeal is allowed partly confirming the tax demand followed by interest to be payable as that shall be applicable during relevant time waiving the penalty imposed in adjudication.
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2013 (6) TMI 368
Appeal before commissioner appeals - delay in filing an appeal - Held that:- It is now well settled that the lower appellate authority has no power to condone the delay in filing the appeal if such delay is beyond the condonable period, which in respect of service tax appeal is 6 months (3 months + 3 months) vide Singh Enterprises Vs CCE Jamshedpur [2007 (12) TMI 11 - SUPREME COURT OF INDIA] - Decided against the assessee.
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2013 (6) TMI 367
ISD - Input service distributor - The credit has been taken in respect of services like Group Insurance of Employees, Health Insurance of employees, Rent-a-cab services, Air Travel Services, etc. Revenue was of the view that these services did not have nexus with the manufacturing activity and they proposed to deny credit on such services - Held that:- The argument of Revenue that the services are not directly related to the manufacturing activity is not a sound argument because of the intangible nature of services in general and definition of input services at Rule 2 (l). The definition has given a very broad definition specifically including services which are usually availed at the Head Office like accounting, auditing, financing etc. - credit allowed in respect of Insurance Premium on Group Mediclaim Policy and Accident Insurance .
Regarding Freight Business Auxiliary - The appellant purchases coupons and issue to their employees. - Held that:- . It is not easy to establish that this has been utilized in furtherance of any processes of the company and not in furtherance of the personal needs of the employees and since nexus cannot be established CENVAT credit cannot be allowed. - cenvat credit denied against the coupons - Partly decided in favor of assessee.
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2013 (6) TMI 366
Cenvat Credit on input services availed without actually paying for the input services received in violation of the provisions of Rule 4(7) of the CENVAT Credit Rules, 2004. - Non payment of interest on delayed payment of service tax - Removal of capital goods as such - Rule 14 of CCR - Held that:- following the decision in the case of Ind-Swift Laboratories [2011 (2) TMI 6 - Supreme Court], prima case found against the assessee - pre deposit ordered equal to 50% interest amount.
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2013 (6) TMI 361
Business Support Services - collected of excess amount to undertook the activity of registration of the car on behalf of the buyers with the RTO authorities - Dealer of Maruti Cars - Held that:- To qualify within this definition of “Support services of business or commerce” the activity undertaken as described should be in relation to business or commerce. When a customer purchases a car from dealers and services are rendered in relation thereto, it cannot be said that the services has been rendered in relation to business or commerce. Therefore Service Tax demand under the category of ‘Business Support Services' is not sustainable in law.
Assessee granted waiver from pre-deposit of the dues adjudged and stay recovery thereof during pendency of the appeal.
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2013 (6) TMI 341
Appeal dismissed as time bared - Held that:- When the case came up for hearing last time, the department was directed to produce evidence towards service of the order dated 29/03/2010 to the appellant. Now, the Commissionerate has reported that they had sent the order by speed post however, the postal authorities has informed that the record of the speed post article is not available since the preservation period of old records are over.
Thus benefit of doubt is to be given to the appellant and hold that service of the order was not completed earlier and the same was completed only on 11/02/2011 when the order was handed over to the appellant in person. Thus as the appeal has been filed within three months from the date of receipt of the order dismissal of appeal on account of time-bar is not sustainable in law - appeal is allowed by way of remand.
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2013 (6) TMI 340
Levy of ST on sale of SIM Cards of BSNL - extended period of limitation - held that:- activity of purchase and sale of SIM card belonging to BSNL where BSNL has discharged the service tax on the full value of the SIM cards, does not amount to providing business auxiliary services and confirmation of demand on the distributors for the second time is not called for. - Demand set aside - Decided in favor of assessee.
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