Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 51 - AT - Service TaxPort services in Kakinada Port - reverse charge - infrastructural support was provided by GOAP at Port - Held That:- it is the assessee who is required to undertake the activity of assessment and there is no system of scrutiny of the assessment and confirmation of the correctness by the Revenue or the officers. In such a situation, it cannot be said that assessee was not aware of the classification of the service and the consequences of introduction of negative list and introduction of new definitions, etc. The very fact that the appellant defended the case by stating that Section 65 was not applicable and the definition of support service had undergone a change would show that the appellants were not prejudiced by the omission in the show-cause notice and the confirmation of demand by the Commissioner is on the ground that service is covered by the definition as we have mentioned that GOAP has provided infrastructural support. Once the service provider has paid the tax under reverse charge mechanism, service tax cannot be demanded from the appellant. Nevertheless it has to be appreciated that this is a mistake on the part of the appellant since they were liable to pay the tax but did not pay. However, remedy would lie in imposition of penalty for contravention of relevant provisions but not recovery of service tax. In this case penalty has been imposed on the ground that service tax was not paid and not for mere contravention of provisions. Demand for CENVAT credit of service tax of ₹ 7,54,47,488/ - Revenue contends that credit disallowed only on ground that port officer did not issue any invoice in name of appellant but had issued only an acknowledgement which is not a proper document - Held That:- If challan contains all details which are mentioned by appellant, credit is admissible and demand for more than ₹ 7.54 crores being CENVAT credit cannot be sustained. Demand of CENVAT credit of ₹ 6,60,545/- - Health service, insurance and motor vehicles, rent-a-cab service, works contract service and services in relation to 7th berth - Held That:- Provision of health care within port area where accident can take place cannot be said to be having no nexus to port service, thus credit of ₹ 83,430/- is admissible - It is a mandatory obligation to insure all vehicles used within port area, credit is thus admissible - Rent-a-cab service is not for personal use but for movement of authorities in providing port service, credit is eligible - Definition of input service includes works contract in relation to construction activity and not in relation to erection and installation activity thus benefit available to assessee - Geotechnical investigation services were provided in relation to 7th berth and same does not become operational, it may be premature to deny credit. Denial of CENVAT credit of ₹ 8,82,646/- - Credit is proposed to be denied on ground that the service provider was eligible for exemption, on this ground denial cannot be sustained - Decided in favour of Appellant.
|