- 2021 (3) TMI 238 - MADRAS HIGH COURT
100% EOU - Refund of the accumulated CENVAT Credit - Output Service of Call Centre provided by the Assessee was exempted under the Notification, having been exported to foreign country, ignoring the effect of Rule 6 of the CENVAT Rules 2004 - interpretation and interplay of Rules 5 and 6 of CENVAT Rules - can a refund under Rule 5 be granted by the Excise Department Authorities even though the Services exported out of India are exempted from payment of any Duty? HELD THAT:- The legal issue which is brought before this Court to be decided which have framed as substantial questions has been considered in the earlier decisions rendered by the Hon'ble High Courts. It appears that the earliest of the decision was in the case of REPRO INDIA LTD. VERSUS UNION OF INDIA [2007 (12) TMI 209 - BOMBAY HIGH COURT]. This decision was relied on by th....... + More
- 2021 (3) TMI 230 - CESTAT BANGALORE
Refund of Service tax paid - SEZ unit - input service or not - Group Health Insurance Service - Group Medical Insurance Service - Group Personal Accident Insurance Service - services are used for providing various authorized operations in the appellant company - Department entertained the view that the appellants are not entitled to the refund of service tax paid on the specified services on the ground that those services are not falling under the default list of services approved by the Development Commissioner - HELD THAT:- The Hon’ble Apex Court in the case of Toyo Engineering India Ltd. [2006 (8) TMI 184 - SUPREME COURT] and also in the case of Commissioner of Central Excise V. Gas Authority of India Ltd. [2007 (11) TMI 276 - SUPREME COURT] has held that the authorities under Act cannot travel beyond the show-cause notice. Furth....... + More
- 2021 (3) TMI 228 - CESTAT CHENNAI
CENVAT Credit - input services - construction service - renovation services - insurance service - ground rent - consequential penalty was reduced to ₹ 50,000/- by the Learned Commissioner (Appeals) in the impugned order. CENVAT Credit - input services - construction services - construction activity was undertaken only for setting up an additional warehouse to the factory and that the said construction was directly used for providing output service namely, renting of immovable property service - HELD THAT:- The Co-ordinate Allahabad Bench of the CESTAT in the case of M/s. Upal Developers Pvt. Ltd. [2019 (5) TMI 1532 - CESTAT ALLAHABAD] has also observed that services used for constructing mall which were meant for renting which were discharging service tax liability, the duty paid on the inputs or capital goods or services used for c....... + More
- 2021 (3) TMI 218 - CESTAT CHENNAI
Business Support Service - Auctioneering services - extended period of limitation - penalty - HELD THAT:- The issue of auctioneering service and business support service, these issue stand covered by the decision of the Tribunal in the case of M/S. ATTUR AGRICULTURAL PRODUCERS VERSUS COMMISSIONER OF CENTRAL EXCISE [2019 (8) TMI 262 - CESTAT CHENNAI] where it was held that As far as the demand with respect to the Auctioneer’s Service is concerned, he would assert that the charge is only on auctioning service and not on tendering service. What they are rendering is facilitation of tenders for sale of the products of their members through sealed tenders. Therefore, the term “auctioneer’s service” does not apply to their activity at all and As far as the demand of service tax under “Business Support Service&rdquo....... + More
- 2021 (3) TMI 209 - CESTAT HYDERABAD
Evasion of Service tax - repair and maintenance of roads - period 16.6.2005 to 26.07.2009 - Business auxiliary services - period April 2005 to March 2010 - Goods Transport Agency Services - period January 2005 to July 2009 - penalties. Repair and maintenance of roads - period 16.6.2005 to 26.07.2009 - Appellant submit that repair and maintenance of roads was not chargeable to service tax as per their understanding - HELD THAT:- The demand in respect of repair and maintenance of roads is undisputedly covered by the retrospective exemption provided by way of Section 97 of Chapter V of the Finance Act 1994. Therefore, the demand on this account needs to be set aside. Goods Transport Agency Services - period January 2005 to July 2009 - HELD THAT:- The appellant has already paid the amount along with interest and is not contesting the same. Th....... + More
- 2021 (3) TMI 171 - PUNJAB AND HARYANA HIGH COURT
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - declaration rejected on the sole ground that department has already initiated enquiry prior to the date of filing declaration - Amnesty Scheme - HELD THAT:- Without going into question of receipt or non-receipt of notice, before or after filing of first/second declaration, we find that present petitions deserve to be allowed on the ground that notices/summons initiating enquiry/investigation were issued after 1.9.2019 i.e. date of commencement of the scheme. No cut-off date for different persons like convicted for any offence under the Indirect Tax, arrears, voluntary disclosure etc. has been prescribed. The scheme as per notification No. 5/2019-C.E. (N.T.) dated 21.8.2019 came into force w.e.f. 01.09.2019 and declaration could be filed till 31.12.2019. It means for most of the pers....... + More
- 2021 (3) TMI 133 - BOMBAY HIGH COURT
Rejection of declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - eligibility of petitioner No.1 or maintainability of its declaration to avail the benefits of the scheme under the category of investigation, enquiry or audit on the ground that service tax dues of petitioner No.1 for the related period was not quantified on or before 30.06.2019 - HELD THAT:- The issue decided in the case of THOUGHT BLURB VERSUS UNION OF INDIA AND ORS. [2020 (10) TMI 1135 - BOMBAY HIGH COURT] where it was held that petitioner was eligible to file the application (declaration) as per the scheme under the category of enquiry or investigation or audit whose tax dues stood quantified on or before 30th June, 2019. Thus, it is evident that all that would be required for being eligible under the above category is a written communication w....... + More
- 2021 (3) TMI 130 - MADRAS HIGH COURT
CENVAT Credit - service tax paid by them prior to registration with the Department - Whether the Tribunal is right in holding that the respondent was entitled for CENVAT credit prior to rendering any service nor getting registered with the Service Tax Department when the decisions relied upon are sub-judice in the Apex Court? - services received from outside India, on which, service tax is to be paid - output service or not - HELD THAT:- Karnataka High Court in the case of Commissioner of Service Tax, Bangalore Vs. Aravind Fashions Ltd. [2011 (9) TMI 852 - KARNATAKA HIGH COURT] wherein it was held that though the assessee therein was a recipient of service, the service provider being outside India, the assessee therein was to be treated as a service provider and that therefore, the assessee therein was entitled to use CENVAT credit availa....... + More
- 2021 (3) TMI 107 - CESTAT KOLKATA
Calculation of Service Tax - appellant claimed that they had paid much more Service Tax than required to be paid by them and such excess payment of Service Tax is actually refundable on final adjudication - HELD THAT:- The appeal is allowed by way of remand to the original adjudicating authority, who shall look into the evidence and after hearing the appellant, pass a reasoned order. The appellant is also directed to appear with their representation and all evidences they wish to rely which they have filed earlier or they want to produce now before the authority. The appellant is directed to appear before the adjudicating authority in the third week of March 2021 and seek opportunity of hearing accordingly.
- 2021 (3) TMI 88 - BOMBAY HIGH COURT
Maintainability of appeal - appeal was rejected as being time-barred - section 85(3A) of the Finance Act, 1994 - HELD THAT:- An appeal relating to service tax, interest or penalty is required to be presented within two months from the date of receipt of the decision or order of the adjudicating authority if the decision or order has been made after the Finance Bill, 2012 had received the assent of the President. There is no dispute that the order in original dated 03.09.2019 had been passed after receipt of the assent of the President to the Finance Bill, 2012. However, as per the proviso, the appellate authority may allow the appeal to be presented beyond the limitation period of two months within a further period of one month if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the st....... + More
- 2021 (3) TMI 85 - JHARKHAND HIGH COURT
Principles of natural justice - allegation is that SCN issued with a pre- determined and closed mind without appreciating the statutory provisions - time limitation - primary thrust of the challenge is on non-compliance of the consultative exercise prior to the issuance of show-cause notice as per para-5.0 of the master circular dated 10th March 2017 - HELD THAT:- Para 5.0 of the master circular dated 10th March 2017 appears to have been incorporated to facilitate trade and promote voluntary compliance and to reduce the necessity of issuing show-cause notice in such cases where the demand of duty is above ₹ 50 lakhs. In a way the rigors of adjudication proceedings was intended to be avoided if the case of the assessee does not fall within the exceptions i.e. preventive / offence related SCNs which has a more serious import. The SCN ....... + More
- 2021 (3) TMI 33 - DELHI HIGH COURT
Maintainability of petition - availability of alternative remedy of appeal - impugned order has been passed, without giving proper reasons, without dealing with the submissions of the petitioner and applying Rule 6A of the Service Tax Rules, 1994 which was not even in force at the relevant time - HELD THAT:- The appellate provision cannot be obviated for such reasons. Though the senior counsel for the petitioner, relying on EAST INDIA COMMERCIAL CO. LTD., CALCUTTA VERSUS COLLECTOR OF CUSTOMS, CALCUTTA [1962 (5) TMI 23 - SUPREME COURT] has contended that writ petition is maintainable when the judgment of the Supreme Court has been ignored, but we are still of the opinion that if at all the petitioner, after availing of the remedy of appeal, is not in a position to comply with the mandatory requirement of pre-deposit and/or has any other gr....... + More
- 2021 (3) TMI 24 - CESTAT CHENNAI
CENVAT Credit - duty paying documents - credit availed by General Insurance Companies on the basis of invoices issued by dealers of motor vehicles containing description of services which were never provided by them - allegation of the Department is that no services have been provided by the dealers to the appellant as per the invoices and therefore, the appellant is not eligible to avail credit of the Service Tax reflected in this invoices - HELD THAT:- The case of the Department is that the payout paid by the appellant to the dealers on the OD premium collected by the dealers from the customers is camouflaged as service provided by the dealers to the appellant; that therefore, the services contained in the invoices have actually not been provided by the dealers to the appellant and thus, CENVAT Credit is not eligible. Though in the Show....... + More
- 2021 (3) TMI 12 - GUJARAT HIGH COURT
Levy of Service tax - expenses incurred towards 'Royalty' - principal argument of the learned counsel appearing for the writ-applicant is that the royalty is not a payment in respect of any taxable service - HELD THAT:- It is pointed out that the matters have been admitted vide order dated 19th September 2018. Let notice of Rule be issued to the respondents, returnable on 19/04/2021. Let there be an adinterim order in terms of Para6( b).
- 2021 (2) TMI 1150 - CESTAT AHMEDABAD
Levy of service tax - recovery of certain amounts from its supplier which in view of the Revenue are in the nature of liquidated damages for compensating the appellant against the poor quality of material supplied to the appellant by its supplier - Section 66(E)(e) of the Finance Act, 1994 - HELD THAT:- The facts are not in disputed that amount recovered by the appellant is towards the poor quality of goods purchased by them. The appellant have taken the ground before the Adjudicating Authority as well as Commissioner (Appeals) that the amount which they have received is in the form of “liquidated damage” and not in the form of “consideration” towards any service for the reason that the said amount is for supply of lower quality of goods and thus the effect is only reduction in the transaction value of the goods. H....... + More
- 2021 (2) TMI 1122 - DELHI HIGH COURT
Scope of two SCN - different subject matter in both SCN - Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS), 2019 - petitioner contends that since the contracts of the petitioner with CIPL were the subject matter of the first show cause notice, the second show cause notice with respect to “free of cost” supplies under the contract with CIPL and/or with respect to constitution of NOIDA does not constitute a different matter but is the same matter - HELD THAT:- Though it is also the contention of the counsel for the petitioner that in any case, qua “free of cost” supplies there is no taxation element as held in COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. [2018 (2) TMI 1325 - SUPREME COURT] has been held to be a corporation and thus the said questions are no longer res integra b....... + More
- 2021 (2) TMI 1118 - BOMBAY HIGH COURT
Seeking reconsideration of declaration of the petitioner filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - eligibility of the petitioner or maintainability of its declaration to avail the benefits of the scheme under the category of investigation, enquiry or audit on the ground that the service tax dues of the petitioner for the related period was not quantified on or before 30th June, 2019 - HELD THAT:- The issue decided in the case of THOUGHT BLURB VERSUS UNION OF INDIA AND ORS. [2020 (10) TMI 1135 - BOMBAY HIGH COURT] where it was held that petitioner was eligible to file the application (declaration) as per the scheme under the category of enquiry or investigation or audit whose tax dues stood quantified on or before 30th June, 2019. In the present case, Petitioner has stated that it received the email of the sa....... + More
- 2021 (2) TMI 1099 - MADRAS HIGH COURT
Levy of Service Tax - supply of tangible goods - transfer of right to use or not - petitioner was providing material handling object, namely, cranes to Bharath Heavy Electricals Limited (BHEL), the sixth respondent herein, on “transfer of right to use” basis - Section 4 of the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT:- The petitioner has rendered service. It was supplying tangible goods, viz. 10T Mobile Cranes numbering 11/12 on daily rental basis. These material handling equipments were hired by the sixth respondent BHEL as per the agreement dated 07.12.2011. The terms of the agreement which has been extracted above indicate that the petitioner has not transferred the Mobile Cranes to the sixth respondent BHEL. On the other hand, the petitioner has provided its driver for operating the Cranes. It was under the supervi....... + More
- 2021 (2) TMI 1093 - CESTAT CHENNAI
Classification of services - Manpower Recruitment or Supply Agency Service or not - period 16.6.2005 to 2007 - 08 - Department was of the view that for the period prior to 2008, as per the agreements entered by the appellant with various clients, the appellants have rendered MRSA services to the clients - appellant claims that the services are nothing but Information Technology Software Services for which they have been paying service tax after 2008 and that these activities will not fall under the definition of MRSA - suppression of facts or not - extended period of limitation - HELD THAT:- it can be seen that the control and supervision of the staff / qualified personnel supplied to the premises of the client (ABN AMRO Bank) is with the appellant (contractor) only. Though certain personnel are supplied to the premises of the client for ....... + More
- 2021 (2) TMI 1078 - CESTAT NEW DELHI
Renting of immovable property service - Failure to file periodic ST-3 returns - service pertaining to commercial development of vacant rail land by construction of multifunctional complexes - HELD THAT:- The non-registration of appellant under service tax has been heavily objected. However, it is acknowledged that Development Agreement with respect to Sarai Rohilla Railway Station has got terminated and that the said termination will have an effect upon quantum of liability. Accordingly, the request of learned Counsel for appellant for remanding the matter for fresh decision has been acknowledged. The matter remanded back to the respective adjudicating authority and order accordingly with the direction to the Adjudicating Authority to re-adjudicate the issue after taking into consideration the termination of the said Development Agreement and subsequent proceedings - Appeal allowed by way of remand.
