GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 572 - CESTAT MUMBAI

2016 (3) TMI 572 - CESTAT MUMBAI - 2016 (42) S.T.R. 924 (Tri. - Mumbai) - Business auxiliary services or mailing list compilation and mailing services - taxability of Commission received on franking received from the Department of Posts - from 1 st July 2003 to 31 st March 2006 - Held that:- We cannot but be surprised by the discriminatory approach in the two impugned orders situated in identical circumstances by the same appellate authority. The more specific taxable service of 'mailing list co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g the decision of the lower authority for the demand prior to 16 th June 2005. - The transaction of franking or usage of the postal service is solely between the appellants and the post office with the former as the customer of the latter. The depiction of the latter as a client is not consistent with this reality and the categorization under section 65(19)(vi) fails the test of rationality. - Demand prioro to 16-6-2005 dropped - demand on service charges collected from clients for the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ispatch requirements, hand over materials that are to be stuffed in envelopes and labeled before being weighed, sorted and posted. They have been in this business since 2001 and the service fee charged from the clients has been sought to be taxed under Finance Act, 1994. The rebate on franking charges of outward mail recovered in full from the clients is also sought to be taxed. 2. The Assistant Commissioner, Service Tax, Division-III, Mumbai held that the activities other than franking are, for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e demand in relation to franking was held to be chargeable on the commission/rebated of ₹ 4,17,601 received from the Department of Posts between 1 st July 2003 and 31 st March 2006 while the demand in relation to the other sub-category was held to be chargeable on receipts of ₹ 1,72,266. It was also held that they registered themselves as service provider on 26 th November 2004 and started charging tax on the bills raised on clients from 17 th December 2004 but deposited an amount of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion 65 (63a) of Finance Act, 1994 and taxable under section 65 9105) (zzzg) of Finance Act, 1994 since 16 th June 2005. While upholding the tax confirmed by the lower authority on the commission/rebate on franking, the appellate authority allowed exemption to the extent permitted under notification no 6/2005-ST. 5. For the same period, the demand on M/s Sai Mailing Services was confirmed at ₹ 2,77,035 along with interest besides imposing penalties under section 75, 76 and 77 of Finance Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e authority. The more specific taxable service of 'mailing list compilation and mailing' was notified only from 16 th July 2005 and taxing that very service under any other entry that existed till then is an act of overreach contrary to legislative intent of taxing the rendering of that service only with effect from 16 th June 2005. The later order in the matter of M/s Sai Mailing Service was decided without taking into account the benefit of enlightenment in the form of the order in the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for 'provision of service on behalf of client.' It would appear that the Department of Posts are the clients of the appellants and, by franking the envelopes for dispatch, have rendered service otherwise to be rendered by that Department to those who contracts with the appellants. 9. In our opinion, this is a superficial and casual view of the transaction. The Central Government alone can, under section 16 of the Indian Post Office Act, 1898, cause postage stamps to be provided and also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

task at hand considering the statutory nature of carriage of postal articles. The appellants enter into a contract with certain business entities to facilitate bulk mailing. The entire activity of dispatch is effected by the appellants on behalf the business entities and the appellants are, therefore the users of the post office. The business entities that contract with the appellants do not approach the post office for any service. This has been acknowledged by the original and appellate author .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version