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2016 (1) TMI 344 - CESTAT AHMEDABAD

2016 (1) TMI 344 - CESTAT AHMEDABAD - 2016 (42) S.T.R. 301 (Tri. - Ahmd.) - Utilization of Service Tax, paid by one assessee, by the another assessee after merger between the two - M/s. BPC Projects had merged with M/s. PSP Projects Pvt. Limited on 01.4.2009. Therefore, all the assets and liabilities of M/s. BPC Projects were taken over by M/s. PSP Projects Pvt. Limited. Hence M/s. PSP Projects Pvt. Limited are rightly entitled to avail PLA balance lying with M/s. BPC Projects on 01.4.2009. M/s. .....

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e lying unutilised was available with M/s. BPC Projects even after 01.4.2009. M/s. PSP Projects Pvt. Limited was the successor and the only legal entity with effect from 01.4.2009 and hence was legally entitled to utilise the said unutilised PLA balance. Hence, we find that the issue herein is only non-observance of procedure of intimation to Range Superintendent etc. and is only a technical violation, if any. - Adjustment of service liability allowed - Decide in favor of assessee on merit a .....

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PC Projects had ₹ 5,89,415/- as PLA balance. The appellants intimated on 26.05.2009 to the Divisional Assistant Commissioner that the said amount will be set-off against the subsequent monthly liabilities of PSP Projects Pvt. Limited. They furnished the details of adjustment of the said amount in the Half Yearly Returns which was duly filed within time on 24.10.2009. The department contended that they were not eligible for utilising the said amount towards the service tax liability of M/s. .....

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Projects Pvt. Limited. Hence M/s. PSP Projects Pvt. Limited are rightly entitled to avail PLA balance lying with M/s. BPC Projects on 01.4.2009. M/s. PSP Projects Pvt. Limited have paid the service tax liability of M/s. BPC Projects also after 01.4.2009. Learned Consultant contended that they had intimated the department on 26.5.2009 about their intention to utilise the PLA balance lying with M/s. BPC Projects as on 01.4.2009 towards the service tax liability of M/s. PSP Projects Pvt. Limited af .....

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ce of M/s. BPC Projects lying unutilised as on 01.4.2009, by them due to merger on 01.4.2009. Hence it is not correct to hold that transfer of the said amount was not correct and therefore the utilisation of the same towards duty liability of M/s. PSP Projects Pvt. Limited is not proper. The said proposition is not tenable and demanding short levy on the said ground is not sustainable. The learned Consultant also submitted that the demand was time barred. 3. On the other hand, learned Authorised .....

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Pvt. Limited only when the Half Yearly Returns for the period April to September 2009 in respect of M/s. PSP Projects Pvt. Limited was scrutinised and at that point of time the short levy came to the notice. Therefore, the demand of short levy made within one year from October 2009 is within the time limit and is proper and sustainable. 4. On consideration of the arguments of both sides and scrutiny of records, it is observed that there is no dispute that ₹ 5,89,415/- was lying in the PLA .....

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