Indirect Taxes is a significant area of professional practice with limited number of professionals well conversant of the law. One such Tax is Service Tax. In India it is a complicated affair and shall remain so till at least GST is introduced. Negative list has brought in a new tax regime. The Cenvat Credit Rules, Place of Provision of Service Rules and the Point of Taxation Rules are important components to understand this law.
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
Find out the detailed explanation of the provisions related to Place of Supply under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
service tax registration, service tax online, international tax consultantRajput consultancy
Start Company in India, CA in Delhi India, Business set up in India, New company registration, New company registration India, new company registration, company registration timeline, CA in Delhi, CA in India
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Budget 2017-18 - analysis of direct tax proposalsoswinfo
No change in tax slabs
The rate of income tax for individuals and HUF within the slab of 2.5 lakhs to Rs. 5 lakhs reduced from 10% to 5%.
Additional surcharge of 10% on the tax payable by a person having total income exceeding Rs. 50 lakhs but not exceeding Rs. 1 crore.
This presentation was created to explain the goals of Student Affairs Marketing at Boise State University, depict their audience, and break down the journey taken as a university in relation to old brand standards, new standards, and where sub-brands fit into the evolving picture.
Indirect Taxes is a significant area of professional practice with limited number of professionals well conversant of the law. One such Tax is Service Tax. In India it is a complicated affair and shall remain so till at least GST is introduced. Negative list has brought in a new tax regime. The Cenvat Credit Rules, Place of Provision of Service Rules and the Point of Taxation Rules are important components to understand this law.
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
Find out the detailed explanation of the provisions related to Place of Supply under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
service tax registration, service tax online, international tax consultantRajput consultancy
Start Company in India, CA in Delhi India, Business set up in India, New company registration, New company registration India, new company registration, company registration timeline, CA in Delhi, CA in India
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Budget 2017-18 - analysis of direct tax proposalsoswinfo
No change in tax slabs
The rate of income tax for individuals and HUF within the slab of 2.5 lakhs to Rs. 5 lakhs reduced from 10% to 5%.
Additional surcharge of 10% on the tax payable by a person having total income exceeding Rs. 50 lakhs but not exceeding Rs. 1 crore.
This presentation was created to explain the goals of Student Affairs Marketing at Boise State University, depict their audience, and break down the journey taken as a university in relation to old brand standards, new standards, and where sub-brands fit into the evolving picture.
Select from a wide range of Kookaburra Cricket Equipment online. Buy Kookaburra Cricket bat or any Kookaburra Cricket Equipment at VKS and get next day delivery in UK.
INCOME TAX – INTERNATIONAL TAXATION
Tax Residency Certificate – DTAA Benefits
The Punjab and Haryana High Court, has held that Tax Residency Certificate issued by a foreign country can be considered valid for the purpose of claiming benefit under the Indo – Mauritius DTAA. The Court reversed the AAR Ruling and relied upon CBDT Circular No. 789 to the effect that certificate of residence issued by the Mauritius Authorities constitute sufficient evidence for residential status.
We are pleased to share our June 2022 edition of the GST Bulletin covering recent amendments/ updates in the realm of GST.
This issue covers in detail the following:
1. Judicial Updates
• No GST on services by security manager located outside India for subscription to secured notes placed in USA.
• Concessional GST rate of 0.75% on construction applies to promoter and not to sub-contractor.
• Ocean freight levy violates 'Composite supply' principle under GST.
• Secondment of employees by Overseas Group Company is covered under Manpower Supply & liable to service tax.
• Charitable clubs imparting sports training exempt, however entrance/membership fees taxable.
2. Notifications/ Circulars
• Due date for filing GSTR-3B for April 2022 extended.
• Due date for payment of tax in GST PMT-06 for April 2022 extended.
• Late fee for delay in filing of Form GSTR-4 waived off.
3. GST Compliance Calendar for June 2022
ABSTRACT
Chemical is right at the core of advance industrial systems, which is why it has attained a serious concern for disaster management. Chemical disasters are often traumatic in impact on humans usually resulting in casualties along with damage to nature and property. Unlike natural disasters, preventive and regulatory measures assume greater significance when we talk about chemical disasters. India too, has witnessed several chemical disasters in the past 50 years, highlighting the need for safeguards against such events. This paper’s focus lies on two of the most dangerous gas leaks India has witnessed until this date, i.e. the Bhopal Gas Leak and the Vizag Gas Leak. The author discusses in detail what went wrong prior to and during the Bhopal Gas leak, which is followed by an explanation on how the safety initiatives have evolved after the 1984 incident. In the next section, the author tries to decode the Vizag leak of 2020 with emphasis on how the company could bypass the safety norms in place. The author then discusses the gap in the present framework governing Chemical Disasters (including gas leaks) and proposes certain measures that could be implemented for effective management of such disasters.
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in thecontents. We would very much
appreciate your feedback which consistently helps us in improving and upgrading the contents.
Presentation on GST Transitional Credits - Disputes & Way ForwardTaxmann
Topics Covered in this Presentation:
1. Background of Transitional provisions
A. Different circumstances under Section 140
2. Practical Issues
A. Judgments on Transitional Credits
B. Deemed Credit
3. Impact of transitional provisions amendment
Dear Members,
We are pleased to present to you ‘TransPrice Times – edition 1st - 15th March 2018’.
This periodical covers key court rulings on the foreign component of employee expenses, treatment of foreign comparables and selection of most appropriate method in transfer pricing. To top it off, certain specific rulings on reference to the transfer pricing officer and use of business segment-wise results over entity-wide results have been looked at separately in this periodical.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
In its ruling in Union of India v. Assn. of Unified Telecom Service Providers of India1 and other connected matters (AGR case), a three-judge bench of the Supreme Court (SC) put an end to a nearly two-decade-long dispute over the Department of Telecommunications, Government of India's interpretation of adjusted gross revenue (AGR) (DoT).
Dear Professional Colleagues,
Sharing with you "Tax Updates- February, '20".
Hope you will find it useful and informative too.
Regards
CA. Reetika G Agarwal
Dear Patron
Here we are with the Thirty third successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Dear Patron
Here we are with the Thirty second successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Government has notified the format of Annual Return under GST. The format is very exhaustive requiring compilation of various information. Important features of Annual Return and FAQs thereon are compiled for reference.
Excise Duty has been imposed on jewellery and there are many fears among the industry about its implications. The authors have analysed such fears in the light of provision of law.
Registration by Jeweler under Excise - A Thoughhtful DecisionAshish Chaudhary
Excise Duty has been imposed on jewellers and multiple options have been provided for taking registration. There is need of having thoughtful decision by jeweler for taking registration.
Information return precautions by mfg and service providersAshish Chaudhary
CBE has come out with Notification requiring RBI and Electricity Companies to submit requisite details about foreign remittance and electricity consumption. Certain aspects requiring consideration by manufacturers and service providers/receivers
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
Indirect tax latest judicial precedents december 2015
1. HIREGANGE & ASSOCIATES
Indirect Tax- Latest Judicial
Precedents
December 2015
This material and the information contained herein prepared by Hiregange & Associates intended for
clients and other chartered accountants to provide legal updates on indirect tax and is not an
exhaustive treatment of such subject. We are not, by means of this material, rendering any
professional advice or services. It should not be relied upon as the sole basis for any decision which
may affect you or your business
2. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 2
By CA Ashish Chaudhary
vetted by: CA Rajesh Kumar T R
HIGH COURT
1. Credit of duty paid on installation of telecommunication towers is not
eligible (Vodafone India Ltd. vs CCE, Mumbai-II 2015 (40) STR 422 (Bom)
Background: Appellant engaged in business of providing telecom service availed
credit on set up of telecommunication towers. Tribunal disallowed credit of duty
paid on tower parts/ green shelter on the ground that these are ‘immovable
property’, hence do not qualify as ‘capital goods’ or ‘inputs’.
Issue: Whether credit of duty paid installation of tower is eligible to
telecommunication service provider?
Decision: Tower parts are immovable properties and do not fall within the definition
of capital goods as held in case of Bharti Airtel by same court. It is well settled
principle that an interpretation of a statutory provision and equally, a
misinterpretation, by one bench of High Court would be binding on coordinated
bench of that very High Court. Hence, ratio of judgment in case of Bharti Airtel
cannot be departed and credit not allowed.
Comment: Appeal has been filed before Supreme Court against the judgment in case
of Bharti Airtel.
2. Exemption, as applicable to native artist and culture in theatre form under
Notification No. 25/2012-ST, not available to film actors (Siddharth
Suryanarayan vs UOI 2015 (40) STR 436 (Mad)
Background: Appellant filed writ petition before HC seeking that there is no
distinction between services provided by a film actor viz a viz artist/folk/classical
art forms of music. The distinction between two for not granting exemption to film
actors is artificial and in violation to Article 14 and 19 (1) (g) of Constitution of
India.
Issue: Whether film artists could be considered as “performing artists or folk or
classical art” to claim benefit of exemption notification?
Decision: Two categories are clearly different and distinguishable and cannot be
treated at parity. The exemption has been granted to native art and culture to
encourage them as they suffer from financial constraints which is not case with film
actors. Hence, no disparity and writ petition dismissed. Film actors not entitled for
exemption.
3. Recovery proceeding cannot be initiated before determination of demand
by adjudication order (Exman Security Services Pvt. Ltd. 2015 (40) STR 463
(Jharkhand)
Background: Mistakes committed by assessee in computation of liability during
investigation stage and department initiated recovery proceeding based on the
computation provided by assessee even before adjudication of the case.
3. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 3
Issue: Whether recovery proceeding can be initiated before determination of
amount by way of adjudication order?
Decision: Relying upon the judgment of Gujarat HC in case of Technomaint
Contractors Pvt Ltd., it has been held that recovery u/s 87 of Finance Act, 1994
cannot be initiated unless there is determination of amount by way of adjudication
order after issuance of SCN u/s 73 (1) or 73A(1).
Comment: In a zeal to meet revenue target, department may sometimes initiate
proceedings directly against third party. The judgment of HC has correctly laid down
that first amount payable should be confirmed thereafter only recovery proceedings can
be initiated.
4. When Finance Act 1994 is a special and complete code in itself then it
override the provision of IPC (Ajay Kumar Sandhu 2015-TIOL-2564-HC-P&H)
Background: Assessee paid the amount of service tax after registration FIR.
Assessee filed for quashing FIR as well as consequential proceedings arising
therefrom. Department disallowed for quashing of FIR that offence is committed
under under Section 406 IPC.
Issue: Whether FIR filed for non payment of service tax is required to be quashed?
Decision: Finance Act of 1994 is a special and complete code in itself, wherein even
the procedure for penalty has been provided, registration of FIR under the general
provisions of IPC was nothing but abuse of process of Court and the same cannot
be sustained.
TRIBUNAL
5. Credit of duty paid on installation of telecommunication towers is eligible
(Essar Telecom Infrastructure Pvt. Ltd. vs CST, Mumbai-I2015(40) STR 591 (Tri-
Mumbai)
Background: Appellant providing telecom infrastructure services to telecom service
providers and charging service tax under “Business Support Service”. It availed
credit of excise duty paid on capital goods and input services used for installation of
telecom towers. Department disallowed credit of duty on the ground that these are
‘immovable property’, hence do not qualify as ‘capital goods’ or ‘inputs’.
Issue: Whether credit of duty paid installation of tower is eligible to service
provider providing telecom infrastructure service to telecom service providers?
Decision: Ratio of Bharti Airtel is not applicable in instant case as in that case the
appellant was engaged in providing telecom services while in the instant case, the
appellant has been providing telecom infrastructure service to telecom service
provider. Credit is admissible.
Comment: The distinction has been made with Bharti Airtel case based on nature of
services provided. Most of telecommunication service providers have adopted this
model to safeguard against the likely disallowance of credit by department.
4. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 4
6. Extended period of limitation cannot be invoked when records are audited
by officer once and short payment not found (Trans Engineers India Pvt.
Ltd.2015 (40) S.T.R. 490 (Tri.-Mumbai)
Background: Assessee engaged in rendering services of ‘installation and
commissioning of plant equipment’. During second audit, department found short-
payment of tax and issued notice invoking extended period
Issue: Whether extended period can be invoked when the records have been
audited earlier by department?
Decision: Revenue authorities cannot invoke the extended period of limitation when
the records of assessee were audited by the officers in earlier period but they did
not find any short payment of tax from records.
7. Meditation and yoga classes covered under Health and Fitness Services
and liable to tax (Malabar Hill Citizens Forum 2015 (40) S.T.R.493 (Tri-Mumbai)
Background: Assessee engaged in providing services of aerobics and yoga claimed
exemption of the same. Department alleged that the services falls within the
definition of “Health and Fitness Services” and hence liable to tax.
Issue: Whether meditation and yoga services covered under “Health and Fitness
Services”?
Decision: As held in case of Osha International Foundation Neo Sanyas Foundation
that these services are covered by “Health and Fitness Service” and hence liable to
tax. Extended period also invoked as assessee did not cooperate with the
department.
Comment: Yoga services have been exempted from service tax vide Notification No.
20/2015-ST dated 21.10.2015 and hence not liable to service tax.
8. No tax liability on support services under reverse charge where tax
charged by government. (Kakinada Seaports Ltd 2015 (40) STR 509 (Tri.-Bang.)
Background: Assessee entered into contract with Government of Andhra Pradesh
(GOAP) to build and operate existing births as well as develop and operate
additional berths to provide port service. The revenue was to be shared between
assessee and GOAP. GOAP charged service tax on their share of revenue. Demand
raised alleging that the tax needs to be paid by appellant under reverse charge on
sharing of revenue with government under support service by government.
Issue: Whether there would be liability to pay service tax under reverse charge
where tax has already been charged by GOAP?
Decision: Support services provided by government is taxable in the hand of
service receiver under reverse charge under Notification No. 30/2012-ST. But when
the tax has already been charged by service provider, it cannot be again demanded
from service receiver under reverse charge.
5. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 5
Comment: Courts generally take lenient view that in case of reverse charge where tax
already stands paid by service provider, it cannot again be demanded from service
receiver. However, it is to be noted that this should not be made regular practice where
judiciary may deny extending similar benefit.
9. Electricity, water and data communication charges recovered based on
area occupied cannot be called as sale of goods or pure agent
collection:(Sea View Support System Pvt. Ltd. 2015 (40) STR 573 (Tri-Bang.)
Background: Assessee on behalf of owner collecting charges from tenants for using
electricity, water and data communication. These charges being collected based on
area occupied rather than actual consumption. Department raised demand for
service tax on the ground that electricity and water charges collected on basis of
area occupied is neither sale of goods nor pure agent collection.
Issue: Whether electricity and water charges collected on the basis of area
occupied could be treated as sale of goods or collection as pure agent?
Decision: It was held that collection of charge towards water/electricity based on
area occupied cannot prima facie be called sale of good as in case of sale, the
quantum of goods supplied is always known which is not in instant case as
collection has been made based on area occupied. Also payment made to owner
includes charges towards maintenance and back-up power supply which prima facie
indicates services are in the nature of “Business Support Service”.
Comment: The judgment, though stay order, has disturbed settled view that charges
recovered towards supply of water and electricity is not liable to service tax as it
amounts to sale of goods. One may refer earlier judgments in favor of assessee in case
of Plaza Maintenance & Services Ltd 2011-TIOL-47-CESTAT-MAD, Chitrali Properties Pvt
Ltd Vs CCE, Pune – III (2013-TIOL-236-CESTAT-Mum) and Econ Hinjewadi
Infrastructure Pvt Ltd Vs. CCE, Pune – III (2012-TIOL-1688-CESTAT-Mum)
10. Education cess should also be refunded in case of export of goods (Tumkar
Minerals Pvt. Ltd. 2015-TIOL- 2444 –CESTAT-MUM)
Background: Assessee claimed refund of education cess along with service tax paid
on input service. Department denied the refund on the ground that only service tax
is refundable not education cess.
Issue: Whether assessee is eligible for refund of education cess paid on service
tax?
Decision: Decision of tribunal in case of Balasore Alloys Ltd. has, vide Circular
No.134/3/2011-ST dated 08.04.2011 (supra) is that education cess paid on service
tax refunded to the exporter cannot be recovered. Therefore, assessee is eligible
for refund of education cess..
Comment: Similar ratio could be applied for Swachh Bharat Cess (SBC) also.
11. Supply of taxi to drivers plying the same on behalf of appellant cannot be
considered as ‘supply of tangible goods’ service. (M/s Meru Cab Company Pvt.
6. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 6
Ltd. 2015-TIOL-2408-CESTAT-MUM )
Background: Appellant having fleet of taxies registered as radio taxi operator with
state government. Booking is received from ultimate passengers based on which
taxi is assigned for taking journey. Payment is made by passengers to driver who
deposits the same with appellant. Department alleged that the supply of taxies to
driver by appellant is supply of tangible goods service liable to service tax.
Issue: Whether assessee is covered under supply of tangible goods for use and to
pay service tax on amount collected from collection fare from passengers?
Decision: It has been held that no services have been provided to drivers as they
have been acting merely based on instruction of the appellant for plying the taxies.
Also, payment is received by them from passengers on behalf of the appellant. As
the taxies are used by ultimate passengers only, it cannot be said that the service
are provider to drivers liable to service tax under category of “supply of tangle
goods for use” service.
Comment: FA 2015-16 has introduced the concept of “aggregator” where liability to
pay service tax on the services provided by driver would be on the aggregator under
reverse charge. Hence, the taxi operator would be liable to service tax on the services
provided to ultimate passengers as output service providers while on services received
from drivers, would be liable as aggregator under reverse charge.
12. No service tax on sale proceeds of auction of abandoned imported goods
(M/S Balmer Lawrie And Co Ltd 2015-TIOL-2414-CESTAT-MUM)
Background: Assessee realized sale proceeds towards auction of abandoned
imported goods on which VAT has been charged. Departments demands service tax
alleging it as service charges towards storage or warehouse
Issue: Whether sale proceeds from auction of abandoned cargo is covered by
storage and warehousing services?
Decision: For the purpose of service tax it is foremost requirement that there
should be service provider and service recipient. In case of auction, money is
realised from auction of cargo and is not received from any service recipient.
Hence, same cannot be classified under “Storage & Warehousing” service.
Comment: The matter had attained finality as many decisions have been rendered in
favor of assessee. However, post negative list, the department has again raised the
same issue as now there is no need to classify the activity under any particular
category of service for charging service tax.
13. Cenvat credit is allowed on input services like construction, repairs etc.
received in residential township constructed for their employees (Reliance
Industries Ltd 2015-TIOL-2343-CESTAT-MUM)
Background: Assessee receiving construction, repair & maintenance, manpower
recruitment and supply, works contract service etc. in relation to residential
township constructed in remote areas near factory for their employees. Cost of
7. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 7
these services debited in books of account and their cost form part of the value of
finished goods. Department disallowed the credit on the same.
Issue: Whether assessee is eligible to avail credit of input services?
Decision: It has been established based on certificate of cost accountant that cost
of these services forms part of the value of finished goods on which excise duty is
charged. Credit is eligible based on judgment of Bombay HC in case of Coca Cola
India Pvt Ltd.
Comment: The judgment has touched basic scheme and purpose of introduction of
Cenvat Credit Rules that credit should be allowed on all expenditure so as to avoid
cascading of taxes. Though the judgment may not hold good post amendment in the
definition of input service w.e.f. 1.4.2011 whereby many of these expenditures have
been specifically made ineligible for credit.
14. Credit of construction service allowed to service provider engaged in
providing renting of immovable property service (Maharashtra Cricket
Association 2015-TIOL-2418-CESTAT-MUM)
Background: Appellant availed input credit on construction service used for
construction of sports stadium. Tax charged on renting of stadium under the
category of “Renting of Immovable Property” service. Department disallowed credit
relying on Board Circular No. 98/01/2008-ST.
Issue: Whether construction is eligible input service where tax charged on output
service under “Renting of immovable property”?
Decision: Input service is not limited to the services for providing output service,
but it also includes the service for setting up the premises of provider of output
service. The Board Circular appears to have travelled absolutely contrary to the
clear and plain language of the definition of the input service. Hence, credit is
eligible.
Comment: Post amendment in definition w.e.f. 1.4.2011, credit on construction
service may not be eligible though one may claim credit of architect/interior decorator
service.
15. Refund of service tax paid to SEZ unit is eligible even if there is no specific
notification to that effect under service tax law during the relevant period
(Reliance Industries Limited vs CCE, Mumbai-I,2015-TIOL-2453-CESTAT-MUM)
Background: Appellant filed claim in accordance with provision of Special Economic
Zone Act in May 2007 for refund of service tax paid on services used in SEZ area.
There was no notification under service tax law during that period providing for
refund. Department declined the refund application.
Issue: Whether refund can be claimed based on SEZ Act when no notification was
in force during the relevant period?
Decision: It has been held that provisions of section 26 of Special Economic Zones
Act, 2005 are conferred with a primacy that cannot be denied, diluted or denigrated
8. Hiregange& Associates Indirect Tax
Chartered Accountants Judicial Precedents
December 2015 8
owing to delay in issuance of notification under service tax law. Notification issued
in 2009 shows that it was intention of government to allow refund. For whatever
reason the notification was not issued during period 2006 to 2009, refund cannot
be denied when there were specific provisions under the SEZ Act.
NCR Office: 509, Vipul Trade Centre, Sohna Road, Sector 48, Gurgaon
Tel: 8510950400; ashish@hiregange.com
Head Office:
1010, II Floor, 26th Main,
4th T Block, Jayanagar,
Bangalore - 560041. Tel:
080-26536405
Branch Office:
Basheer Villa”, House No.8-
2-268/1/16/B, II Floor,
Sriniketan Colony, Road
No.3, Banjara Hills,
Hyderabad – 500034
Tel: 040-40062934
Branch office:
Flat No. 101, D.No. 9-19-
18, Sai Sri Kesav Vihar, Behind
Gothi Sons Show room, CBM
Compound, Visakhapatnam-
530 003 Tel:8916009235
www.hiregange.com