Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Bharti Airtel Ltd. Versus Commissioner of Service Tax, Delhi

Waiver of pre-deposit - Transfer of Cenvat Credit under Rule 10 in case of provider of output services - transfer of all assets on demerger - Cellular telecommunication services - Cenvat Credit availed on various inputs and capital goods used for setting up of towers and prefabricated buildings - Imposition of penalty - Held that:- The question as to when the transferor does not seek the transfer of the accumulated credit, whether the same would lie in the account books of transferor or in that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

advocate that the denial of credit to the appellant is not in accordance with the provisions of Rule 10.

As such, on the point of time bar also, the appellant has good prima facie case. Therefore the condition of pre-deposit is dispensed with and all. - Stay petition allowed - Service Tax Stay Application No. 52965 of 2014 & Service Tax Appeal No. 52490 of 2014 - Stay Order No . 50459 /2016 - Dated:- 11-4-2016 - MS ARCHANA WADHWA, MEMBER (JUDICIAL) AND MR. B RAVICHANDRAN, MEMBER (TECH .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es and during the period relevant for the purpose of present appeal, they were discharging their Service tax liability on telecommunication services, business support services, sponsored services and goods transport services, after obtaining centralized registration with the Service tax department. It is seen that as a result of Honble Delhi High Court order passed on September, 19, 2007, demerger took place on 31.1.08 and all the assets i.e. specific infrastructure were transferred by the appe .....

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 on 20.4.2010 seeking to recover the Cenvat credit availed by them on capital goods and inputs used in the erection of towers and fabricated building and utilized by them for payment of Service tax on the output services during the period 10.9.04 till 31.1.08. Revenue also sought to recover the credit lying unutilized with them as on 31.1.08, in terms of provisions of Rule 3(5) read with Rule 10(2) of Cenvat Credit Rules. 4. During the adjudication, the Commissioner held that Rule 3(5) of Credi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

transfer of infrastructure to M/s. BIL, the said credit has lapsed and is liable to be recovered. He also did not find favour in the appellants contention that demand stand raised by way of show cause notice on 20.4.2010 in respect of period ending on 31.1.08 and is hopelessly barred by limitation. However, while confirming the demand he did not impose any penalty on the appellant on the ground that there was confusion in the department itself over the above issue. 5. The present stay petition .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gned order, we find that the show cause notice having proposed the confirmation in terms of Rule 3(5) but the said Rule stand dropped by the adjudicating authority on the ground of inapplicability of the same, and the demand stand confirmed in terms of provisions of Rule 10 of Cenvat Credit Rules which reads as follows:- Rule 10. Transfer of CENVAT credit. - (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in owners .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business. (3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to a joint venture. Admittedly, in the present case, ownership of the towers and fabricated building stand transferred to M/s. BIL. In terms of said Rule 10, the appellant was within its right to seek benefit on this count. Use of the words the manufacturer shall be allowed to transfer of cenvat credit in the said Rule is supportive of the fact that said rule is beneficial piece of legislation extending the facility to the transferor to seek transfer of accumulated credit in the circumstances .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the manufacturer himself would not be in a position to use the same. In the absence of any positive point of the said Rule to said effect, the credit would continue to be in the books of original owner and the appellant cannot be made to reverse the same. 8. At this stage, we also take note of the Tribunals decision in the case of Bilag Industries P Ltd. vs. CCE, Daman [2010 (259) ELT 461 (Tri-Ahmd)] wherein the factual situation was considered and it was observed that inputs and capital goods .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

th the learned advocate that the denial of credit to the appellant is not in accordance with the provisions of Rule 10. However, at this stage, we make it clear that initial availment of credit in respect of inputs and capital goods used for erection of towers and prefabricated building is otherwise in dispute in a separate set of proceedings. Same would be decided independently in those proceedings. Inasmuch as, in the present proceedings, we are only concerned with the applicability of provisi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST Invoice

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Article: RCM Applicability to persons not liable to get registered us 23(1)

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.



|| 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