9911796707
TMI Blog2019 (8) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... e purview of service tax, the appellants have not collected service tax on the same. Further, to provide the outside services, the appellant had taken helicopters on lease from various vendors located outside India. The appellants are rendering services in the non-taxable territory i.e. Jammu & Kashmir. Revenue has issued SCNs on various issues which were confirmed by the OIOs as detailed below. Hence, these appeals. Sl. No Appeal No OIO SCN date/ Period Covered Issues Raised Amount Confirmed Rs in Lakhs 1 ST/85625/16 04/ST-VI /RS/ 2015 dated 30.11.2015 17.10.12 (4/2011 to 3/2012) Supply of Tangible Goods 376.23* 2 ST/85672/15 04/ST-VI /RS/ 2014 dated 19.12.2014 23.04.13 (10/2007 to 03/2011) do 4.87 Do (Vectra UK) 72.65 BAFS (RCM) 78.54 Re-imbursement of fuel 62.49 3 ST/85688/15 04/ST-VI /RS/ 2014 dated 26-12-2014 13.05.13 (4/2011 to 3/2012) do 352.27 Reimbursement of fuel 72.12 BAFS 7.96 STGU 4.75 &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner did not provide any finding on the extended period and mechanically confirmed the entire demand. However, for the demand of Rs. 4, 87,560, department took the figures from the reconciliation statement submitted by the appellants, for the period 2009-10 to 2010-11; during the period in dispute the appellants are liable to pay tax on Cash Basis; however, the financials of the appellants were prepared on the accrual basis; due to the difference in practice of ascertaining the revenue, the gross receipts were reconciled; The appellants have paid tax under "Transportation of passengers by Air" w.e.f. 1.7.2010; further the taxable event, in the case of "Supply of Tangible Goods for Use" is the supply, i.e. transfer of custody of goods, that is the date of agreement; the event in the present case is therefore 16.04.2006, i.e. the date when the appellants entered into an agreement for supply of goods; However, the taxable category of "Supply of Tangible Goods for User Services" came into existence from 16.05.2008, much after the event has occurred, i.e. entering of agreement. Therefore, section 65(105) (zzzzj) of the Finance Act, 1994 will not be applicable in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Service tax under Supply of Tangible Goods for Use Service, that the appellants vide letter dated 15.04.2013 submitted the final figures of gross receipts for the period April 2011 to March 2012; appellants have discharged the service tax liability on the entire gross receipts through Cenvat Credit and Cash; However, the department without considering the same issued show cause notice dated 13.05.2013. The appellants in Para (2.4.3 of reply to SCN) categorically stated that the tax is already being discharged on the entire gross receipts for the period 2011-12. However, even after recording the same, the Ld. Commissioner mechanically confirmed the entire demand. However, for the demand of Rs. 4, 75,560/- the department took the figures from the financials, under the head "Provisions" and demanded tax under "Supply of tangible goods for use". The appellants are providing continuous supply of service; in case of continuous supply, service tax is payable at the time of invoices are raised; appellants made provisions for the services for the purpose of accounting in 2011-2012; the invoices of the same were issued in subsequent months and service tax discharged thereafter; merely pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in entirety without considering the correct figures. (ii). in respect of demand of Service Tax under Supply of Tangible Goods for Use Services that show cause notice invoked the extended period; though the appellants submitted detailed submissions, in reply to show cause notice, as to why the extend period should not be invoked, the Ld. Commissioner did not provide any finding on the extended period and mechanically confirmed the entire demand. (iii). during the period the period 2009-10, 2010-11 and 2011-12,the Appellants prepared financials on the accrual basis; due to the difference in practice of ascertaining the revenue, the gross receipts were reconciled; appellants paid tax under "Transportation of passengers by Air" w.e.f. 1.7.2010; the taxable event, in the case of "Supply of Tangible Goods for Use" is the supply, i.e. transfer of custody of goods, that is the date of agreement. (iv). In respect of demand of Service tax under Banking and Financial Services, the agreement entered into a lease agreement with CESNA(UK) on 15.06.2015 was amended and clauses related to option to purchase the asset was removed from the agreement. But Ld. Commissioner confirmed the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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