Service Tax Update - Aug 2013
August 22, 2013
In case of manner of Service of Notice the sending show-cause notice through courier was not an approved mode of service envisaged under Section 37C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 - Tri
Input Service Credit of Mandap Keeper Service for the annual day function of the appellant company is an integral part of the business activity and hence credit was allowed for the same - Tri
August 21, 2013
In case of service Tax on erection, commissioning and installation services the noticee themselves did not get themselves registered in time, did not get themselves registered for all the taxable services rendered by them and even after getting registered, had not disclosed the actual facts to the department. - stay granted equal to 50%. - Tri
August 19, 2013
Whether in exercise of powers u/s 35C of the Act and while remanding the matter back to the original adjudicating authority, the Appellate Tribunal can issue direction directing the assesse to deposit some amount before his case was considered on merits by the original adjudicating authority on remand - HC
Commercial or Industrial Construction Service u/s 65(30a)(b). In view of the specific exclusion of ‘railways' from commercial and industrial construction service - the question of imposing any Service Tax on the railways run by the DMRC does not arise at all - Tri
In case of sale of space or time for advertisement section 65(105) (zzzm) whether magazine is a print media are not liable to pay any Service Tax - Tri
August 17, 2013
Notification No. 09/2009-ST casts an obligation on AC or DC for condoning the delay if the refund claim is not filed within the period of six months. The notification itself was issued in March, 2009 thus a liberal approach for condonation of delay was required - Tri
August 16, 2013
In case of ad-hoc Exemption order No.1/1/2010-ST the service recipient when liable to pay service tax u/s 66A shall be considered as the service provider should apply in terms to the ad-hoc exemption order as well - Tri
Assessee were rendering a service to the shipping lines and the consideration was received by them by way of mark-up in prices -services rendered by the assesse merits classification under Business Auxiliary Service - Tri
In case of levy of service tax on charges collected on dishonoring of cheques the service being intangible, arguments are raised based on Rule 5 of Service Tax (Determination of Value) Rules, 2006 etc. But the situation is essentially the same as in the case of removal of inputs without reversal of credit taken and prima facie cannot be approved of and full recovery of such amount may be prima facie justifiable - Tri
August 14, 2013
In case of Reverse Charge even if the service was taxable as ‘Business Support Service’, there will not be any change in tax liability under reverse charge mechanism or any other count - revenue-neutrality cannot be taken as a ground for avoiding payment of tax at any stage of a VAT system - Tri
In case of Residential Complex u/s 65(91a) the new entry uses the very same expressions defined earlier and subjected to tax but a new composition scheme for discharging liability was introduced - So it cannot be considered that the earlier entries were null and void. - Tri
SPV formed as a result of agreement between NHAI or State Authority and the concessionaire under the BOT arrangement, the Concessionaire cannot be considered as an agent of the NHAI - Tri
August 13, 2013
In terms of Section 65A (2)(a) the activities of the assesse generically considered should be attributed to the more specific description of taxable services enumerated in the in sub-clauses of Sec 65(105) than the other sub-clause [Section 65 (19)], providing a more general description - Tri
Both the provider of service and recipient of the service are part and parcel of the Government of Maharashtra and thus service to self cannot be considered as a taxable service. - Tri
August 12, 2013
In case of construction of Complex Service u/s 65 (105) (zzzh) and Taxable Service u/s 65 (91a) the fact that individual residential units were for residential use of the purchaser cannot take the complex outside the definition. Any interpretation to the contrary will make the entry otiose. - Tri
Business Auxiliary Services in case of Job Work - The word 'processing' was included in the definition only with effect from 16.06.2005. It is not legal on part on revenue to demand the service tax on the activity of grinding prior to 16.06.2005 - Tri
August 10, 2013
A person becomes Goods Transport Agency u/s 65 (105) (zzp) only if he issued the consignment note.
In case of manner of Service of Notice the sending show-cause notice through courier was not an approved mode of service envisaged under Section 37C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 - Tri
Input Service Credit of Mandap Keeper Service for the annual day function of the appellant company is an integral part of the business activity and hence credit was allowed for the same - Tri
August 21, 2013
In case of service Tax on erection, commissioning and installation services the noticee themselves did not get themselves registered in time, did not get themselves registered for all the taxable services rendered by them and even after getting registered, had not disclosed the actual facts to the department. - stay granted equal to 50%. - Tri
August 19, 2013
Whether in exercise of powers u/s 35C of the Act and while remanding the matter back to the original adjudicating authority, the Appellate Tribunal can issue direction directing the assesse to deposit some amount before his case was considered on merits by the original adjudicating authority on remand - HC
Commercial or Industrial Construction Service u/s 65(30a)(b). In view of the specific exclusion of ‘railways' from commercial and industrial construction service - the question of imposing any Service Tax on the railways run by the DMRC does not arise at all - Tri
In case of sale of space or time for advertisement section 65(105) (zzzm) whether magazine is a print media are not liable to pay any Service Tax - Tri
August 17, 2013
Notification No. 09/2009-ST casts an obligation on AC or DC for condoning the delay if the refund claim is not filed within the period of six months. The notification itself was issued in March, 2009 thus a liberal approach for condonation of delay was required - Tri
August 16, 2013
In case of ad-hoc Exemption order No.1/1/2010-ST the service recipient when liable to pay service tax u/s 66A shall be considered as the service provider should apply in terms to the ad-hoc exemption order as well - Tri
Assessee were rendering a service to the shipping lines and the consideration was received by them by way of mark-up in prices -services rendered by the assesse merits classification under Business Auxiliary Service - Tri
In case of levy of service tax on charges collected on dishonoring of cheques the service being intangible, arguments are raised based on Rule 5 of Service Tax (Determination of Value) Rules, 2006 etc. But the situation is essentially the same as in the case of removal of inputs without reversal of credit taken and prima facie cannot be approved of and full recovery of such amount may be prima facie justifiable - Tri
August 14, 2013
In case of Reverse Charge even if the service was taxable as ‘Business Support Service’, there will not be any change in tax liability under reverse charge mechanism or any other count - revenue-neutrality cannot be taken as a ground for avoiding payment of tax at any stage of a VAT system - Tri
In case of Residential Complex u/s 65(91a) the new entry uses the very same expressions defined earlier and subjected to tax but a new composition scheme for discharging liability was introduced - So it cannot be considered that the earlier entries were null and void. - Tri
SPV formed as a result of agreement between NHAI or State Authority and the concessionaire under the BOT arrangement, the Concessionaire cannot be considered as an agent of the NHAI - Tri
August 13, 2013
In terms of Section 65A (2)(a) the activities of the assesse generically considered should be attributed to the more specific description of taxable services enumerated in the in sub-clauses of Sec 65(105) than the other sub-clause [Section 65 (19)], providing a more general description - Tri
Both the provider of service and recipient of the service are part and parcel of the Government of Maharashtra and thus service to self cannot be considered as a taxable service. - Tri
August 12, 2013
In case of construction of Complex Service u/s 65 (105) (zzzh) and Taxable Service u/s 65 (91a) the fact that individual residential units were for residential use of the purchaser cannot take the complex outside the definition. Any interpretation to the contrary will make the entry otiose. - Tri
Business Auxiliary Services in case of Job Work - The word 'processing' was included in the definition only with effect from 16.06.2005. It is not legal on part on revenue to demand the service tax on the activity of grinding prior to 16.06.2005 - Tri
August 10, 2013
A person becomes Goods Transport Agency u/s 65 (105) (zzp) only if he issued the consignment note.
C&F Agent – In the given case the only activity done by the assessee is:
August 9, 2013
Where a collection centre which acts merely as a courier commission agent does perform any taxable service and the services provided by a collection centre, are not taxable in the category of photography service. - prima facie case in favor of assessee – Tri
August 8, 2013
Cutting/harvesting of sugarcane and transportation of the same from the farmers' fields to the sugar factory where work are per tonnage of sugarcane supply, both for harvesting as well as transportation are not taxable as manpower supply services - Tri
Service Tax on GTA under reverse charge - while Rule 2(l) and 2(p) cover two classes of persons, the recipient of GTA services, by virtue of the Explanation to Rule 2(p) of the CENVAT Credit Rules, as a provider of output service, was entitled to all benefits that a person providing input service would be entitled to in the matter of CENVAT credit adjustment - HC
August 7, 2013
Site Formation and Clearance, Earth Moving and Demolition or Cargo Handling. Also, contention regarding classification has not been raised before the adjudicating authority. The overburden and wastage for removal cannot be considered as cargo. - Tri
In case of gross value valuation for reimbursement of expenses the contention of the appellants that no service tax is payable on reimbursable expenses borne by the appellants is not tenable and accordingly rejected - Tri
August 6, 2013
RCM (Right Concept Marketing) Business Marketing Plan is neither a new arrangement nor there is any concept of dividends. The service is taxable as Business Auxiliary service- Tri
Where a show cause notice is invalided for violation of due process, and in particular violation of principles of natural justice, a fresh opportunity could be given to revenue.- Tri
In case of validity of Show-cause Noticet the party to whom a show cause notice is issued must be made aware of the allegation against it and that this is a requirement of natural justice. Unless the assessee is put to such notice, he has no opportunity to meet the case against him. Notices quashed by Tribunal.
August 5, 2013
Storage of frozen goods in cold storage is an inseparable part of assessee’s activity of clearing & Forwarding operation. Therefore service is classifiable under Clearing &Forwarding Agent service. - TRI
Within the framework of the agreements, considered in the context of the taxable BAS, as defined in Sections 65 (19) read with 65(105) (zzb) of the Act, the conclusion is uncontestable that the appellant was rendering the taxable BAS since the appellant was clearly marketing and providing services in relation to sale of goods (IMFL , Beer etc.) produced / belonging to the distilleries - TRI
August 4, 2013
Collecting the charges by the appellant from his customers and paying the same to Commodity Exchange for Computing Linkage, prima-facie, will not fall under the category of Stock Broker Services - TRI
Removal of waste and housekeeping, in our considered view, prima-facie would get covered under the ‘Cleaning Services’, as removal of waste is nothing but cleaning of that area - TRI
August 2, 2013
(a) providing labour for unloading of the goods at the rail heads, loading into the trucks for transport from rail-head to godown and unloading and stacking of the cement at the godown.
(b) arranging the dispatch of the goods as per the instructions and maintaining record of receipt and dispatch.
Hence, not a clearing and forwarding agent – TriAugust 9, 2013
Where a collection centre which acts merely as a courier commission agent does perform any taxable service and the services provided by a collection centre, are not taxable in the category of photography service. - prima facie case in favor of assessee – Tri
August 8, 2013
Cutting/harvesting of sugarcane and transportation of the same from the farmers' fields to the sugar factory where work are per tonnage of sugarcane supply, both for harvesting as well as transportation are not taxable as manpower supply services - Tri
Service Tax on GTA under reverse charge - while Rule 2(l) and 2(p) cover two classes of persons, the recipient of GTA services, by virtue of the Explanation to Rule 2(p) of the CENVAT Credit Rules, as a provider of output service, was entitled to all benefits that a person providing input service would be entitled to in the matter of CENVAT credit adjustment - HC
Site Formation and Clearance, Earth Moving and Demolition or Cargo Handling. Also, contention regarding classification has not been raised before the adjudicating authority. The overburden and wastage for removal cannot be considered as cargo. - Tri
In case of gross value valuation for reimbursement of expenses the contention of the appellants that no service tax is payable on reimbursable expenses borne by the appellants is not tenable and accordingly rejected - Tri
August 6, 2013
RCM (Right Concept Marketing) Business Marketing Plan is neither a new arrangement nor there is any concept of dividends. The service is taxable as Business Auxiliary service- Tri
Where a show cause notice is invalided for violation of due process, and in particular violation of principles of natural justice, a fresh opportunity could be given to revenue.- Tri
In case of validity of Show-cause Noticet the party to whom a show cause notice is issued must be made aware of the allegation against it and that this is a requirement of natural justice. Unless the assessee is put to such notice, he has no opportunity to meet the case against him. Notices quashed by Tribunal.
August 5, 2013
Storage of frozen goods in cold storage is an inseparable part of assessee’s activity of clearing & Forwarding operation. Therefore service is classifiable under Clearing &Forwarding Agent service. - TRI
Within the framework of the agreements, considered in the context of the taxable BAS, as defined in Sections 65 (19) read with 65(105) (zzb) of the Act, the conclusion is uncontestable that the appellant was rendering the taxable BAS since the appellant was clearly marketing and providing services in relation to sale of goods (IMFL , Beer etc.) produced / belonging to the distilleries - TRI
August 4, 2013
Collecting the charges by the appellant from his customers and paying the same to Commodity Exchange for Computing Linkage, prima-facie, will not fall under the category of Stock Broker Services - TRI
Removal of waste and housekeeping, in our considered view, prima-facie would get covered under the ‘Cleaning Services’, as removal of waste is nothing but cleaning of that area - TRI
August 2, 2013
The sugar cane belongs to the sugar factory in terms of the agreement of sale executed between the farmers and the sugar factory. Therefore, the activity undertaken by the appellant is one of procuring or processing of the goods belonging to the client which is classifiable under ‘Business Auxiliary Service' and not under ‘Manpower Recruitment of Supply Agency Service. - TRI
August 1, 2013
Commission received by the petitioner for using its software and hardware falls under the category of Business Auxiliary Service - TRI
Department cannot deny refund of service tax alleging non-supply of 'requisite documents'; it must specify, in writing, list of documents required, in addition to documents already submitted by assessee
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