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2015 (10) TMI 58 - CESTAT NEW DELHI

2015 (10) TMI 58 - CESTAT NEW DELHI - TMI - Waiver of pre deposit - Demand of service tax - appellant was of the view that it was not liable to service tax since LICHFL was remitting service tax on full value and therefore on the principles of revenue neutrality, there was no liability for the appellant to remit service tax as that would be available to LICHFL as CENVAT credit. - Held that:- Entitlement to credit is predicated on the basis of such a facility provided under CENVAT Credit Rules, 2 .....

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schemata of taxation at the level of each taxable event would be rendered otiose and inoperative on application of the concept of revenue neutrality as a clog on the liability to service tax. - Revenue neutrality may conceptually arise if the liability to tax and the entitlement to credit inheres in the same entity and in respect of identical taxable event. - Partial stay granted. - Application No. ST/STAY/60550/2013-CU[DB] In Appeal No. ST/59830/2013-CU[DB] - Stay Order No.53116/2015 - Dated:- .....

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17/- confirmed by the primary adjudicating authority and also extended the benefit of reduced (25%) penalty under Section 78 of the Finance Act, 1994. 2. The appellant provided services as Direct Sales Agent/Associate (DSA) to M/s. LIC Housing Finance Ltd. (LICHFL). Proceedings were initiated for having provided Business Auxiliary Service (BAS) during 01.04.2006 to 31.01.2011, invoking extended limitation period, under proviso to Section 73 of the Act, on 17.10.2011. The appellant claimed that t .....

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llate order. 3. Shri AK Batra, ld. consultant for the appellant strenuously contended that the extended period of limitation could not be invoked in view of the fact that the appellant clearly sensitised the Department regarding immunity to tax as early as in March, 2011; on the basis of the principle of revenue neutrality there is no liability to tax; and in any event the period 01.04.2006 to 30.09.2006 is even beyond the extended period of limitation, i.e., five years. 4. Shri AK Batra refers .....

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2 (Tri.-Ahmd.)] for the proposition that in case of revenue neutrality, a prima facie, a strong case is made out and waiver of pre-deposit in full should be granted. 5. We notice that in each of the Interim Orders referred to above, there are observations regarding revenue neutrality being a relevant factor inferring on immunity to tax. Neither ld. consultant for the appellant nor ld. Departmental Representative placed before us any jurisprudential or normative basis for the proposition that the .....

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by that entity to the appellant while remitting its liability to service tax for having provided Banking and Other Financial Services, another taxable service. In these circumstances, since LICHFL could have taken credit and therefore remitted its service tax liability less the service tax reimbursed by LICHFL to the appellant, the State in any event suffers no loss of revenue if the appellant fails to remit service tax on BAS, since LICHFL has remitted service tax on the whole of the considera .....

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