Auditing firms face EU heat
Auditing firms in the country could soon run out of business if they do not get themselves verified according to the guidelines mentioned in the Eighth Directive issued by the European Union (EU). EU will recognise balance-sheets of companies audited by firms that fit their specified standards.
Wednesday, July 9, 2008
Mergers & Acquisitions become Simpler
Mergers & Acquisitions become Simpler
The move gives corporates the flexibility to go ahead with mergers without facing legal hurdles, if they do not fall under the commission’s criteria.
The move gives corporates the flexibility to go ahead with mergers without facing legal hurdles, if they do not fall under the commission’s criteria.
Flunked in CA exam? Don’t lose heart
Flunked in CA exam? Don’t lose heart
THE Institute of Chartered Accountants of India (ICAI) has opened new career option for unsuccessful candidates aspiring to become chartered accountants. At least a lakh candidates who have cleared the CA inter examination can now become accounting technicians without attending the mandatory one-year course
THE Institute of Chartered Accountants of India (ICAI) has opened new career option for unsuccessful candidates aspiring to become chartered accountants. At least a lakh candidates who have cleared the CA inter examination can now become accounting technicians without attending the mandatory one-year course
Capital gains — planning beyond investments
Capital gains — planning beyond investments
Often, the direct expenses incurred in connection with transfer of an asset can be substantial and have to be properly documented and captured to reduce the incidence of capital gains.
Often, the direct expenses incurred in connection with transfer of an asset can be substantial and have to be properly documented and captured to reduce the incidence of capital gains.
Possession, execution and registration
Possession, execution and registration
Capital gains will have to be assessed on the basis of the date of the agreement under which possession was handed over.
Capital gains will have to be assessed on the basis of the date of the agreement under which possession was handed over.
Possession, execution and registration
Possession, execution and registration
Capital gains will have to be assessed on the basis of the date of the agreement under which possession was handed over.
Capital gains will have to be assessed on the basis of the date of the agreement under which possession was handed over.
INDIAN ECONOMY
INDIAN ECONOMY
Indian economy is growing day by day.It is clearly reflected by data of GDP which is consistently revolving between 8- 9% which is healthy sign for Indian economy.India is just close to China whose GDP is around 11 to 12 %.But GDP alone is not an indicator of Development as there r many countries in world that have GDP around 20% even they lacks behind other countries, because they don’t have enough who can work or lack demand because for any economy to grow industrial growth in that country must be rapid and for industrial growth to take place there must be element of demand in that country. So India also has this advantage as huge amount of population leads to increased demand which also favours India. Development of Indian economy is also reflected by the fact that from last year increasing foreign currency flows are coming to India because of development potential of Indian industries.
But the main problems confronting Indian economy today are Inflation and rising crude oil prices. Inflation for week ended June 14 has touched 11.45% and crude on Friday has touched $143 per barrel from $136 a barrel in last week showing a uptrend of 4-5 % in last week which is a worrisome indicators for global as well as Indian economies.
Inflation & rising crude oil prices
When economy will grow that’s sure inflation will also increase but inflation above 6 % is cause of concern for our economy. But the main increase in inflation if we can analyze is mainly due to crude oil prices which have increased from $97 per barrel in October,2007 to $143 a barrel in June 2008 due to which 44% increase in crude oil has affected inflation to extent of 95% approx. as it has increased from 4% to 8.10%. 11.45% is weekly data annual inflation is around 8.10%. S o what I want to say that it is a short term phenomenon as in maid term crude will go to around $110 a barrel n also RBI has taken various steps such as it has increased CRR ratio as well as Repo rates by 0.5%. So the effect of all will tame down inflation and by September it will be around 6 %.
Saudi Arabia stated that it is ready to increase production by 200,000 barrels per day to give support to the international prices. This is provided there is an appropriate increase in investment both upstream and downstream necessary to ensure adequate and timely supplies. Also, the transparency and regulation of financial markets should be improved, it said. So in long run crude oil prices will also come down
Hoarding is also a factor which has resulted in increase of crude prices. Government has also taken measures to control it as follows
In response to record oil and gasoline prices, however, the US House of Representatives has approved legislation directing the Commodity Futures Trading Commission to use its authority, including emergency powers, to “curb immediately” excessive speculation in energy futures markets, which have been affected by massive inflows of money and zooming prices and also to control speculation and hoarding.
I am a BULL who has very optimistic view towards Indian economy and according to me in coming 2 to 3 years Indian markets will see an equity boom tht has never occurred place n in my point of view our stocks from where they are today will triple from current price sin coming two years. Its my own view
By Bhuvan
Indian economy is growing day by day.It is clearly reflected by data of GDP which is consistently revolving between 8- 9% which is healthy sign for Indian economy.India is just close to China whose GDP is around 11 to 12 %.But GDP alone is not an indicator of Development as there r many countries in world that have GDP around 20% even they lacks behind other countries, because they don’t have enough who can work or lack demand because for any economy to grow industrial growth in that country must be rapid and for industrial growth to take place there must be element of demand in that country. So India also has this advantage as huge amount of population leads to increased demand which also favours India. Development of Indian economy is also reflected by the fact that from last year increasing foreign currency flows are coming to India because of development potential of Indian industries.
But the main problems confronting Indian economy today are Inflation and rising crude oil prices. Inflation for week ended June 14 has touched 11.45% and crude on Friday has touched $143 per barrel from $136 a barrel in last week showing a uptrend of 4-5 % in last week which is a worrisome indicators for global as well as Indian economies.
Inflation & rising crude oil prices
When economy will grow that’s sure inflation will also increase but inflation above 6 % is cause of concern for our economy. But the main increase in inflation if we can analyze is mainly due to crude oil prices which have increased from $97 per barrel in October,2007 to $143 a barrel in June 2008 due to which 44% increase in crude oil has affected inflation to extent of 95% approx. as it has increased from 4% to 8.10%. 11.45% is weekly data annual inflation is around 8.10%. S o what I want to say that it is a short term phenomenon as in maid term crude will go to around $110 a barrel n also RBI has taken various steps such as it has increased CRR ratio as well as Repo rates by 0.5%. So the effect of all will tame down inflation and by September it will be around 6 %.
Saudi Arabia stated that it is ready to increase production by 200,000 barrels per day to give support to the international prices. This is provided there is an appropriate increase in investment both upstream and downstream necessary to ensure adequate and timely supplies. Also, the transparency and regulation of financial markets should be improved, it said. So in long run crude oil prices will also come down
Hoarding is also a factor which has resulted in increase of crude prices. Government has also taken measures to control it as follows
In response to record oil and gasoline prices, however, the US House of Representatives has approved legislation directing the Commodity Futures Trading Commission to use its authority, including emergency powers, to “curb immediately” excessive speculation in energy futures markets, which have been affected by massive inflows of money and zooming prices and also to control speculation and hoarding.
I am a BULL who has very optimistic view towards Indian economy and according to me in coming 2 to 3 years Indian markets will see an equity boom tht has never occurred place n in my point of view our stocks from where they are today will triple from current price sin coming two years. Its my own view
By Bhuvan
ORKUT COMMUNITY
THIS IS TO INFORM TO ALL THE NEW COMMERS ON THIS BLOG
THAT WE (JAB WE MET CA ) HAVE COMMUNITY ON THE ORKUT ALSO .
ALL OF YOU ARE REQUESTED TO BE THE MEMBER OF THAT COMMUNITY ALSO
Link is : http://www.orkut.co.in/Community.aspx?cmm=52668906
THAT WE (JAB WE MET CA ) HAVE COMMUNITY ON THE ORKUT ALSO .
ALL OF YOU ARE REQUESTED TO BE THE MEMBER OF THAT COMMUNITY ALSO
Link is : http://www.orkut.co.in/Community.aspx?cmm=52668906
Tuesday, July 8, 2008
Service Tax Case Laws
MAGUS CONSTRUCTION PVT LTD Versus UNION OF INDIA - 2008 TMI - 4479 - HIGH COURT OF GAUHATI
Service Tax - Applicability of Service Tax on the business of development and sale of immovable properties, i.e., real estates - whether the appellant has been working, as a "service provider", for those persons with whom the petitioner-company enters into agreements and constructs flats for the purpose of sale to those with whom such agreements are entered into - HC held that department is binding by the circular issued by board. HC further held that, the activity in question is not subject to service tax.
M/s NAGARJUNA CONSTRUCTION CO. LTD Versus GOI and Others - 2008 TMI - 4478 - HIGH COURT OF ANDHRA PRADESH
Service Tax - Applicability of Service tax on Works Contract - Appellant sought to declare the circular no. 98/1/2008 St dated 4-1-2008 ultra virus the Finance Act, 1994. In the circular it is said that contracts executed prior to 1.6.2006 shall be taxable under the old respective categories. Appellant wants to pay tax on the works contract under the new provision 65(105)(zzzza) - HC has granted interim relief to the petitioner to pay service tax under new category subject to further orders.
M/s M P POWER TRANSMISSION CO LTD Versus CCE, BHOPAL - 2008 TMI - 4449 - CESTAT, Delhi
Service Tax - Applicability of Service Tax on services provided by private companies relating to generation, supply, distribution etc. on behalf of state power board (state governments, i.e. Madhya Pradesh Electricity Board) to the consumers - Demand was raised to the tune of Rs. 67,28,53,038/-. CESTAT has found that prima fascia the service is taxable under the category of "Business Support Service" and ordered to deposit Rs. 5 crore and stay granted for the balance demand from pre-deposit
M/s JET AIRWAYS (INDIA) LTD Versus CST, AHMEDABAD - 2008 TMI - 4448 - CESTAT, AHMEDABAD
Service Tax - "Cargo handling services" versus "Transport of goods by Air" - Transport of goods by air services brought into tax net with effect from 10-9-2004 without disturbing already existing entries relating to cargo handling services, demand raised for the period before 10-9-2004 is not sustainable and therefore tribunal set-aside the order-in-original
CCE, CHANDIGARH Versus M/s ROSHAN LAL RAVI DECORATORS - 2008 TMI - 4447 - CESTAT, Delhi
Service Tax - Exemption under notification no. 12/2003 - Value of goods and material if sold shall be exempted - since the notification did not specify any document, the CA certificate with the purchase bills are valid documents to allow exemption.
M/S NITYANANDA ELECTRONICS MANGALORE Versus CCE (APPEALS) MANGALORE - 2008 TMI - 4446 - CESTAT, BANGALORE
Service Tax - Appellant failed to pay service tax within the prescribed time limit, but the same before issuance of Show Cause Notice. Department levied penalty under section 76 and 77 but did not impose penalty under section 78. CESTAT has accepted the request of the appellant to waive the penalty by invoking the provisions of section 80. However, interest is required to be deposited.
SARLA POLYESTER LTD. Versus COMMISSIONER OF CENTRAL EXCISE, VAPI - 2008 TMI - 4436 - CESTAT, AHMEDABAD
Service Tax - Present appeal relates to the payment of education cess at the time of clearance in DTA - appellant’s contention that as Customs education cess stand paid by them at the time of import of the goods, further confirmation of education cess at the time of DTA clearance is not in accordance with the law, is not acceptable - fact that the customs education cess stands paid, will not alter the position – held that education cess is to be levied on all dues of excise, so assessee’s appeal rejected
TOTAL SECURITY SYSTEM Versus COMMISSIONER OF C. EX., & CUS., GOA - 2008 TMI - 4432 - CESTAT MUMBAI
Service Tax - Service as security agency to Port Trust – interest has been levied and penalty has been imposed on the ground that the service tax payable by the appellants was not paid within time – neither SCN nor the order of the adjudicating authority and lower appellate authority have confirmed any amount as service tax payable by the appellants – this is not legally sustainable to impose interest & penalty if demand is not confirmed – assessee’s appeal allowed
AKILA TEXTILES Versus COMMISSIONER OF CENTRAL EXCISE, COIMBATORE - 2008 TMI - 4431 - CESTAT CHENNAI
Service Tax - Demand of tax raised in SCN in respect of GTO service received by them during the period 16.11.97 to 2.6.98 was paid on 10.12.2002 – Commissioner was misconceiving the provisions of law in viewing that Finance Act, 2003 did not grant any extension of time for payment of service tax by recipients of GTO services for the aforesaid period – tax was paid within the period allowed by the Finance Act, 2003 as also that allowed by the SC in Gujarat Ambuja Cements case – penalty not justified
TAMILNADU PETROPRODUCTS LTD. Versus COMMR. OF C. EX., (ST), CHENNAI - 2008 TMI - 4430 - CESTAT CHENNAI
Service Tax - GTA service – tax paid for freight incurred prior to 1.1.05 – credit taken on 1.4.05 of the tax paid – whether interest & penalty are imposable for delay in reversing credit – lower authorities have held that the assessee’s availing credit on 1.4.05 of the tax paid was wrong and have demanded interest for the delay in reversing the same (on 29.3.06) – assessing authority approved the payment of tax relating to the half-year 2005, as correct – hence credit was rightly availed – appeal allowed
COMMISSIONER OF C. EX., JAIPUR-I Versus LAXMI TRADING CO. - 2008 TMI - 4429 - CESTAT, NEW DELHI
Service Tax - Contract for mining, loading, transporting and unloading of limestone from the mines to designated places of client – findings of the Commissioner (Appeals) that the loading is incidental to mining and transportation, appears reasonable – respondent cannot be considered as an agent in the context of rendering the service of cargo handling – demand raised to bring impugned services of loading under cargo handling services, is not sustainable – appeal is therefore, rejected
NARNOLIA SECURITIES PVT. LTD. Versus COMMR. OF SERVICE TAX, RANCHI - 2008 TMI - 4428 - CESTAT KOLKATA
Service Tax - Assessee paid Service Tax on behalf of four other Service Tax providers, but later on they came to know that those Tax providers themselves have separately paid the Tax – excess payment of tax – Appellants adjusted the amount of Rs. 92,000 paid in excess in Dec. 2004 while paying tax amount for the month of Feb. 2005 – Department should have advised the Appellants to claim a refund for excess amount – lenient consideration is called for to allow such an adjustment – appeal allowed
VBC EXPORTS LTD. Versus COMMR. OF C. EX., VISAKHAPATNAM - 2008 TMI - 4427 - CESTAT BANGALORE
Service Tax - Stevedoring, CHA, cargo handling services – held that handling of export cargo & stevedoring within port area are cargo handling services not port service – demand not sustainable because cargo handling services are outside the purview of service tax – in case of outsourcing of Cargo handling activity, appellant is laible to pay tax if sub-contractor has not paid it – tax paid @ Re. 1 per MT on CHA service but dept sought 15% - since assessee regularly filed tax returns, demand is time barred
COMMISSIONER OF C. EX., GOA Versus V. M. SALGAONKAR & BROS. PVT. LTD. - 2008 TMI - 4426 - CESTAT MUMBAI
Service Tax - Cenvat Credit Rules 6 (3) & 6 (5) – non maintenance of separate records of input services used for exempted & non-exempted services – revenue seeks to deny credit on the ground that the provisions of Rule 6 (3) (c) will be applicable – Rule 6(3) is not applicable to Rule 6(5) because Rule 6(5) stars with non-obstante clause ‘notwithstanding’ – it is undisputed that credit availed is on the service as mentioned in Rule 6(5), the credit of the entire/whole amount of service tax has to be allowed
JAY SECURITY SERVICES Versus COMMR. OF CUS., C. EX & SERVICE TAX, DAMAN - 2008 TMI - 4425 - CESTAT AHMEDABAD
Service Tax - Enhancement of penalty – in view of Extra-ordinary Taxpayer Friendly Scheme dated 20-9-2004, if the entire tax as regards the past service tax liability stands paid along with interest by 30-10-04, no penalty shall be imposable – plea of revenue that assessee is registered from 29/9/03 so Scheme date 20/4/04 is not applicable, is not acceptable – no justification for enhancement of penalty by commissioner in review order
RAAJ KHOSLA & CO. Versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI - 2008 TMI - 4424 - CESTAT NEW DELHI
Service Tax - Address of the firm as given in the invoice was different from address given in the registration certificate – contention of the Revenue is that no doubt the invoices were in the name of the appellant but the address is different, so credit is deniable - However, the address is different than the registration certificate. Subsequently, the registration certificate was got amended by the appellant & office address on the invoices were also included in R.C. - denial of credit is not sustainable
MARKET CHASE ADVERTISING Versus COMMR. OF C. EX., MADURAI - 2008 TMI - 4423 - CESTAT CHENNAI
Service Tax - Activity of preparation & erection of banners, traffic sign boards, centre median grills & barricades as required by traffic police – fabrication & erection of hoardings for display of advertisements of their private clients – In view of TN 345/4/97, impugned services are not taxable under Advertising Agency because conceptualisation, visualization & designing of advertisements are not undertaken – explanation given by appellants with regard to statement of proprietor is cogent – appeal allowed
NYPRO FORBES PRODUCTS LTD. Versus COMMR. OF SERVICE TAX, CHENNAI - 2008 TMI - 4422 - CESTAT, CHENNAI
Service Tax - Technical Collaboration Agreement to obtain technical know-how & assistance from foreign co. for setting up a plant in India - fee @ 5% of the net ex-factory sale price of the contract products, paid by assessee – Revenue failed to show that technical assistance would come within the scope of licences, rights, privileges – not exigible to service tax under ‘consulting engineer’s service’ – but it is covered by Intellectual Property Service on which tax was not leviable prior to Sept. 2004
RAJASTHAN TOURS PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR - 2008 TMI - 4421 - CESTAT NEW DELHI
Service Tax - Credit availed on mobile phones u/r 3(6) by Tour operator for period April to Sept. 2004 – held that, since CCR came into force w.e.f. 10.9.04 appellant could not be saddled with any liability in terms of CCR so penalty u/r 15 CCR is set aside – for the bills pertaining to period subsequent to 10.9.04 when the CCR came into force, matter requires verification by adjudicating authority – but penalty u/s 76 Finance Act is justified as credit is admissible only on telephone installed in premises
PRODEK LEKTRONICS Versus COMMR. OF C. EX., CHENNAI-II - 2008 TMI - 4420 - CESTAT, CHENNAI
Service Tax - Restoration of the appeal – notice of hearing of the appeal in the week commencing 24-12-2007 was available to the party – procedure of the Tribunal in vogue during those days was weekly listing of appeals, acknowledged by the applicants – As the party was aware that their appeal was figuring in the weekly list, they were expected to be present – circumstances are sufficiently indicative of the applicants negligence – applicants have failed to make out sufficient cause for restoration
Service Tax - Applicability of Service Tax on the business of development and sale of immovable properties, i.e., real estates - whether the appellant has been working, as a "service provider", for those persons with whom the petitioner-company enters into agreements and constructs flats for the purpose of sale to those with whom such agreements are entered into - HC held that department is binding by the circular issued by board. HC further held that, the activity in question is not subject to service tax.
M/s NAGARJUNA CONSTRUCTION CO. LTD Versus GOI and Others - 2008 TMI - 4478 - HIGH COURT OF ANDHRA PRADESH
Service Tax - Applicability of Service tax on Works Contract - Appellant sought to declare the circular no. 98/1/2008 St dated 4-1-2008 ultra virus the Finance Act, 1994. In the circular it is said that contracts executed prior to 1.6.2006 shall be taxable under the old respective categories. Appellant wants to pay tax on the works contract under the new provision 65(105)(zzzza) - HC has granted interim relief to the petitioner to pay service tax under new category subject to further orders.
M/s M P POWER TRANSMISSION CO LTD Versus CCE, BHOPAL - 2008 TMI - 4449 - CESTAT, Delhi
Service Tax - Applicability of Service Tax on services provided by private companies relating to generation, supply, distribution etc. on behalf of state power board (state governments, i.e. Madhya Pradesh Electricity Board) to the consumers - Demand was raised to the tune of Rs. 67,28,53,038/-. CESTAT has found that prima fascia the service is taxable under the category of "Business Support Service" and ordered to deposit Rs. 5 crore and stay granted for the balance demand from pre-deposit
M/s JET AIRWAYS (INDIA) LTD Versus CST, AHMEDABAD - 2008 TMI - 4448 - CESTAT, AHMEDABAD
Service Tax - "Cargo handling services" versus "Transport of goods by Air" - Transport of goods by air services brought into tax net with effect from 10-9-2004 without disturbing already existing entries relating to cargo handling services, demand raised for the period before 10-9-2004 is not sustainable and therefore tribunal set-aside the order-in-original
CCE, CHANDIGARH Versus M/s ROSHAN LAL RAVI DECORATORS - 2008 TMI - 4447 - CESTAT, Delhi
Service Tax - Exemption under notification no. 12/2003 - Value of goods and material if sold shall be exempted - since the notification did not specify any document, the CA certificate with the purchase bills are valid documents to allow exemption.
M/S NITYANANDA ELECTRONICS MANGALORE Versus CCE (APPEALS) MANGALORE - 2008 TMI - 4446 - CESTAT, BANGALORE
Service Tax - Appellant failed to pay service tax within the prescribed time limit, but the same before issuance of Show Cause Notice. Department levied penalty under section 76 and 77 but did not impose penalty under section 78. CESTAT has accepted the request of the appellant to waive the penalty by invoking the provisions of section 80. However, interest is required to be deposited.
SARLA POLYESTER LTD. Versus COMMISSIONER OF CENTRAL EXCISE, VAPI - 2008 TMI - 4436 - CESTAT, AHMEDABAD
Service Tax - Present appeal relates to the payment of education cess at the time of clearance in DTA - appellant’s contention that as Customs education cess stand paid by them at the time of import of the goods, further confirmation of education cess at the time of DTA clearance is not in accordance with the law, is not acceptable - fact that the customs education cess stands paid, will not alter the position – held that education cess is to be levied on all dues of excise, so assessee’s appeal rejected
TOTAL SECURITY SYSTEM Versus COMMISSIONER OF C. EX., & CUS., GOA - 2008 TMI - 4432 - CESTAT MUMBAI
Service Tax - Service as security agency to Port Trust – interest has been levied and penalty has been imposed on the ground that the service tax payable by the appellants was not paid within time – neither SCN nor the order of the adjudicating authority and lower appellate authority have confirmed any amount as service tax payable by the appellants – this is not legally sustainable to impose interest & penalty if demand is not confirmed – assessee’s appeal allowed
AKILA TEXTILES Versus COMMISSIONER OF CENTRAL EXCISE, COIMBATORE - 2008 TMI - 4431 - CESTAT CHENNAI
Service Tax - Demand of tax raised in SCN in respect of GTO service received by them during the period 16.11.97 to 2.6.98 was paid on 10.12.2002 – Commissioner was misconceiving the provisions of law in viewing that Finance Act, 2003 did not grant any extension of time for payment of service tax by recipients of GTO services for the aforesaid period – tax was paid within the period allowed by the Finance Act, 2003 as also that allowed by the SC in Gujarat Ambuja Cements case – penalty not justified
TAMILNADU PETROPRODUCTS LTD. Versus COMMR. OF C. EX., (ST), CHENNAI - 2008 TMI - 4430 - CESTAT CHENNAI
Service Tax - GTA service – tax paid for freight incurred prior to 1.1.05 – credit taken on 1.4.05 of the tax paid – whether interest & penalty are imposable for delay in reversing credit – lower authorities have held that the assessee’s availing credit on 1.4.05 of the tax paid was wrong and have demanded interest for the delay in reversing the same (on 29.3.06) – assessing authority approved the payment of tax relating to the half-year 2005, as correct – hence credit was rightly availed – appeal allowed
COMMISSIONER OF C. EX., JAIPUR-I Versus LAXMI TRADING CO. - 2008 TMI - 4429 - CESTAT, NEW DELHI
Service Tax - Contract for mining, loading, transporting and unloading of limestone from the mines to designated places of client – findings of the Commissioner (Appeals) that the loading is incidental to mining and transportation, appears reasonable – respondent cannot be considered as an agent in the context of rendering the service of cargo handling – demand raised to bring impugned services of loading under cargo handling services, is not sustainable – appeal is therefore, rejected
NARNOLIA SECURITIES PVT. LTD. Versus COMMR. OF SERVICE TAX, RANCHI - 2008 TMI - 4428 - CESTAT KOLKATA
Service Tax - Assessee paid Service Tax on behalf of four other Service Tax providers, but later on they came to know that those Tax providers themselves have separately paid the Tax – excess payment of tax – Appellants adjusted the amount of Rs. 92,000 paid in excess in Dec. 2004 while paying tax amount for the month of Feb. 2005 – Department should have advised the Appellants to claim a refund for excess amount – lenient consideration is called for to allow such an adjustment – appeal allowed
VBC EXPORTS LTD. Versus COMMR. OF C. EX., VISAKHAPATNAM - 2008 TMI - 4427 - CESTAT BANGALORE
Service Tax - Stevedoring, CHA, cargo handling services – held that handling of export cargo & stevedoring within port area are cargo handling services not port service – demand not sustainable because cargo handling services are outside the purview of service tax – in case of outsourcing of Cargo handling activity, appellant is laible to pay tax if sub-contractor has not paid it – tax paid @ Re. 1 per MT on CHA service but dept sought 15% - since assessee regularly filed tax returns, demand is time barred
COMMISSIONER OF C. EX., GOA Versus V. M. SALGAONKAR & BROS. PVT. LTD. - 2008 TMI - 4426 - CESTAT MUMBAI
Service Tax - Cenvat Credit Rules 6 (3) & 6 (5) – non maintenance of separate records of input services used for exempted & non-exempted services – revenue seeks to deny credit on the ground that the provisions of Rule 6 (3) (c) will be applicable – Rule 6(3) is not applicable to Rule 6(5) because Rule 6(5) stars with non-obstante clause ‘notwithstanding’ – it is undisputed that credit availed is on the service as mentioned in Rule 6(5), the credit of the entire/whole amount of service tax has to be allowed
JAY SECURITY SERVICES Versus COMMR. OF CUS., C. EX & SERVICE TAX, DAMAN - 2008 TMI - 4425 - CESTAT AHMEDABAD
Service Tax - Enhancement of penalty – in view of Extra-ordinary Taxpayer Friendly Scheme dated 20-9-2004, if the entire tax as regards the past service tax liability stands paid along with interest by 30-10-04, no penalty shall be imposable – plea of revenue that assessee is registered from 29/9/03 so Scheme date 20/4/04 is not applicable, is not acceptable – no justification for enhancement of penalty by commissioner in review order
RAAJ KHOSLA & CO. Versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI - 2008 TMI - 4424 - CESTAT NEW DELHI
Service Tax - Address of the firm as given in the invoice was different from address given in the registration certificate – contention of the Revenue is that no doubt the invoices were in the name of the appellant but the address is different, so credit is deniable - However, the address is different than the registration certificate. Subsequently, the registration certificate was got amended by the appellant & office address on the invoices were also included in R.C. - denial of credit is not sustainable
MARKET CHASE ADVERTISING Versus COMMR. OF C. EX., MADURAI - 2008 TMI - 4423 - CESTAT CHENNAI
Service Tax - Activity of preparation & erection of banners, traffic sign boards, centre median grills & barricades as required by traffic police – fabrication & erection of hoardings for display of advertisements of their private clients – In view of TN 345/4/97, impugned services are not taxable under Advertising Agency because conceptualisation, visualization & designing of advertisements are not undertaken – explanation given by appellants with regard to statement of proprietor is cogent – appeal allowed
NYPRO FORBES PRODUCTS LTD. Versus COMMR. OF SERVICE TAX, CHENNAI - 2008 TMI - 4422 - CESTAT, CHENNAI
Service Tax - Technical Collaboration Agreement to obtain technical know-how & assistance from foreign co. for setting up a plant in India - fee @ 5% of the net ex-factory sale price of the contract products, paid by assessee – Revenue failed to show that technical assistance would come within the scope of licences, rights, privileges – not exigible to service tax under ‘consulting engineer’s service’ – but it is covered by Intellectual Property Service on which tax was not leviable prior to Sept. 2004
RAJASTHAN TOURS PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR - 2008 TMI - 4421 - CESTAT NEW DELHI
Service Tax - Credit availed on mobile phones u/r 3(6) by Tour operator for period April to Sept. 2004 – held that, since CCR came into force w.e.f. 10.9.04 appellant could not be saddled with any liability in terms of CCR so penalty u/r 15 CCR is set aside – for the bills pertaining to period subsequent to 10.9.04 when the CCR came into force, matter requires verification by adjudicating authority – but penalty u/s 76 Finance Act is justified as credit is admissible only on telephone installed in premises
PRODEK LEKTRONICS Versus COMMR. OF C. EX., CHENNAI-II - 2008 TMI - 4420 - CESTAT, CHENNAI
Service Tax - Restoration of the appeal – notice of hearing of the appeal in the week commencing 24-12-2007 was available to the party – procedure of the Tribunal in vogue during those days was weekly listing of appeals, acknowledged by the applicants – As the party was aware that their appeal was figuring in the weekly list, they were expected to be present – circumstances are sufficiently indicative of the applicants negligence – applicants have failed to make out sufficient cause for restoration
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