SERVICE TAX TODAY

Vol. 12, Part 9, for the week of February 29 – March 6, 2008

Contents

 

statutes

q notifications

Service Tax

u Section 86(1A) of Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified Committee of Commissioners

n Corrigendum to Notification No. 46/2008-ST, dated 18-1-2008 

n Corrigendum to Notification No. 47/2008-ST, dated 18-1-2008 

u Section 93 of the Finance Act, 1994 - Power to grant exemption from service tax - Taxable services specified in schedule received by an exporter and used for export of goods - Amendment in Notification No. 41/2007 - Service Tax, dated 6-10-2007 - notification no. 3/2008-service tax, dated 19-2-2008

q press release

Service Tax

u Registration procedure 

Magazine

landmark cases

-   An analysis of Landmark Decisions reported in Volume 12 of STT//Hariom Jindal  

Reports

table of cases

CCE v. Indian Oil Corporation Ltd. (Chennai - CESTAT)  

EID Parry (India) Ltd. v. CST (Chennai - CESTAT)  

Essvee Express Logistics (P.) Ltd. v. CST (Bang. - CESTAT)  

Evergreen Suppliers v. CCE (Bang. - CESTAT)  

GAC Shipping (India) (P.) Ltd. v. CCE&C (Bang. - CESTAT)  

Krishna Fabrications (P.) Ltd. v. CCE (Chennai - CESTAT)  

Molex (India) Ltd. v. CCE (Bang. - CESTAT)  

Subject Index

Cenvat Credit Rules, 2004

Cenvat credit

-   Period March, 2005 to February, 2006 - Assessee, a manufacturer of motor vehicle parts, had taken credit of service tax paid for availing goods transport operator’s service for outward transportation of finished goods to buyer’s premises - Original authority raised demand of amount taken as Cenvat credit and imposed penalties - However, in a similar case, Tribunal pending resolution of dispute by a Larger Bench had granted complete waiver of pre-deposit requirement and stay on recovery as there existed conflicting views among co-ordinate Benches  - Whether there should be complete waiver of pre-deposit and stay on recovery of dues till final disposal of appeal - Held, yes - Krishna Fabrications (P.) Ltd. v. CCE (Chennai - CESTAT)  

Cenvat Credit Rules, 2004

-   Rule 3  

Circulars and Notifications

-   Notification No. 36/2004, dated 31-12-2004  

-   Trade Notice No. 39, dated 11-6-2007  

Consulting engineer

-   Whether definition of consulting engineers requires departmental authority to show that technical assistance is rendered by a consulting engineer to assessee in any discipline of engineering, so as to enable revenue to demand service tax on gross amount paid as consideration for such service - Held, yes - Assessee had paid royalty to its German collaborators as consideration for technical know-how, industrial property rights and technical assistance received by it - It was not settled as to whether foreign company was acting in capacity of consulting engineers and, if so, in what discipline of engineering - Further amount of service tax demanded by authority was a levy on entire amount of royalty paid for numerous benefits and technical assistance was only one of them - Whether since ingredients of consulting engineer’s service defined under Act had not been shown to have existed in technical assistance aspect covered by agreement  and impugned order was silent on question as to what part of royalty was paid for technical assistance, prima facie case existed in favour of assessee for waiver of pre-deposit and stay of recovery in respect of amounts of service tax, interest and penalties - Held, yes - EID Parry (India) Ltd. v. CST (Chennai - CESTAT)  

Courier agency’s service

-   Assessee was registered as courier agency - Revenue demanded service tax on ground that it had collected service tax from its clients but did not remit same to Government - Assessee contended that though it was registered as courier agency, it was actually a transporter and was mainly collecting freight for goods and arranging transport - Impugned order was found to be very short and no details had been provided as to how department arrived at service tax liability - Further assessee-company was closed and it had already remitted service tax to certain extent - Whether since it was very difficult to come to a definite conclusion regarding assessee’s liability, amount already paid was to be treated as pre-deposit and requirement of pre-deposit of balance amount of duty, interest and penalty was to be waived - Held, yes - Essvee Express Logistics (P.) Ltd. v. CST (Bang. - CESTAT)  

Finance Act, 1994

-   Section 65  

-   Section 68  

Goods Transport agency

-   Period from 16-11-1997 to 1-6-1998 - Assessee availed services of Goods Transport Operators (GTOs) but did neither pay service tax, nor did it file returns - Department raised demand of service tax from assessee - On appeal, Commissioner (Appeals) in view of Supreme Court’s judgment in case of CCE v. L.H. Sugar Factories Ltd. [2005] 2 STT 282, set aside said demand - Revenue’s case was that after decision in L.H. Sugar Factories Ltd.’s case (supra), Supreme Court admitted a civil appeal filed by respective Commissioners in cases of Gujarat Carbon & Industries Ltd. v. CCE [2007] 11 STT 348 (Mum. - CESTAT) and Sundaram Fastners Ltd. and, therefore, view taken by Supreme Court in L.H. Sugar Factories Ltd.’s case (supra) could not be considered to be final - However, in CCE v. Seshasayee Paper & Board Ltd. [2007] 9 STT 308 (Chennai - CESTAT), Tribunal has held that mere admission of civil appeals by Apex Court would not operate as stay against decision taken by Tribunal and decision in L.H. Sugar Factories Ltd.’s case (supra) would hold field  - Whether in view of said decision order of Commissioner (Appeals) in instant case was to be sustained - Held, yes - CCE v. Indian Oil Corporation Ltd. (Chennai - CESTAT)  

Payment of service tax

-   Period from 1-4-2003 to 29-2-2004 - Assessee was registered as cargo handling service provider and clearing and forwarding agent - Assessee undertook these activities for various Custom House Agents (CHAs) on sub-contract basis - When revenue sought to levy service tax, assessee informed department that its principals were paying service tax on consideration received by it from clients in respect of work sub-contracted to it and, hence, in view of Trade Notice No. 39, dated 11-6-1997, assessee, as sub-contracting CHA, was not required to  pay service tax - Revenue authorities did not verify fact that principals were paying service tax, and raised demand of service tax from assessee  - Whether since assessee had informed department a year before issuance of show-cause notice  that its principals were paying service tax, it was for department to verify facts and take proper action - Held, yes - Whether such failure of department could not be used against assessee to demand service tax when it was not liable for same in terms of trade notice/circulars issued by department - Held, yes - Whether, therefore, appeal of assessee against impugned order was to be allowed - Held, yes - Evergreen Suppliers v. CCE (Bang. - CESTAT)  

-   Period from March 2003 to March 2004 - Assessee was availing management services from a company situated abroad - Service tax was demanded from assessee - Tribunal in Aditya Cement v. CCE [2007] 9 STT 156 (New Delhi - CESTAT) had held that in view of Notification No. 36/ 2004 service tax liability on recipient was only with effect from 1-1-2005 -However, Tribunal in Calvin Wooding Consulting Ltd. v. CCE [2007] 9 STT 334 (New Delhi - CESTAT) had taken a contrary view that with effect from 16-8-2002, liability to pay service tax for services received from a company abroad was on recipient - Whether in view of conflicting decisions of Tribunal, question of leviability of Service Tax on service recipient prior to 1-1-2005 was to be referred to Larger Bench - Held, yes - Molex (India) Ltd. v. CCE (Bang. - CESTAT)  

Taxable service

-   Revenue demanded service tax from assessee in respect of other income received by it  - In a similar matter in respect of same assessee, Tribunal had remanded issue to original authority - Whether in view of said decision, matter was to be remanded back to adjudicating authority for a de novo decision - Held, yes - GAC Shipping (India) (P.) Ltd. v. CCE&C (Bang. - CESTAT)  

 

 

CUMULATIVE INDEX TO VOLUME 12

 

 

 

MAGAZINE

 

Features

banking and financial services

- Whether all facilities provided by banks are taxable?//D.V. Shidhaye

cbec circulars

- Supreme Court rulings on effect and binding nature of CBEC circulars

cenvat credit

- Relevant date under rule 3(5) - Proviso 3//N.S. Govindan

- Availability of Cenvat Credit of inputs and capital goods against output liability of service tax//Gaurav Gupta

cleaning services

- Cleaning service//T.K. Doctor and Zankhana T. Doctor

current topic

- GST-still vague !//Geeta Das

insurance auxiliary service

- Insurance auxiliary services//T.K. Doctor and Zankhana T. Doctor

insurance services

- Life insurance service//T.K. Doctor and Zankhana T. Doctor

landmark cases

- An analysis of Landmark Decisions reported in Volume 12 of STT// Hariom Jindal

mandap keeper

- Expression ‘official, social or business function’ in taxable service of mandap keeper//Rahul Jain

miscellanea

- Article browser

my column

- Clarifying confusions or confusing clarifications?//V.S. Datey

payment of service tax

- Service tax liability on receiver of services - Supreme Court judgment in case of KSE Board v. CCE, Thiruvananthapuram//Hariom Jindal

refunds

- Refund of service tax - Some recent Tribunal decisions//V. Pattabhiraman

rental services

- Controversy regarding rental services - An analysis//Pradip R. Shah

renting of immovable property

- Whether service provided by cold storage, exempt under category of ‘storage and warehousing’ could be taxable under category of renting of immovable property service?//Rahul Jain

search and seizure

- Power of search - Section 82//Shikha Holani

security agency

- Security agency services//T.K. Doctor and Zankhana T. Doctor

telecommunication services

- Telecommunication sector//B.N. Das

works contract

- Service tax on works contract - An analysis//Hariom Jindal

Your Queries

- Cenvat credit when both taxable and exempt services provided

- Cenvat credit issues

- Can security service be ‘Business auxiliary service’

- Credit of input services utilised for export of services

- Taxability of various services

- Services for tours outside India

- Services provided in J&K

- Service provided by SEZ to unit in DTA

- Service Tax on laying of telephone cables

- Service Tax on GTA services

- Service Tax on PF contribution of Labour contractor

- Valuation of service of renting of immovable property

- Works Contract Service

- Toll and parking charges paid by rent-a-cab service provider

- Services which are partially exempt

- Services to SEZ

- Site excavation is not business auxiliary service

- Forward contract service

- Exemption of Rs. Eight lakhs

- Referral fees of doctor

Your Queries

q Small service providers

q Import of services

q Cenvat credit under composition scheme

q Export of service

q Providing bed rolls in railways

q Composite package tours

q Cenvat credit on debit note

q Service tax registration when address is changed

STATUTES

circulars

Central Excise/Customs

- Powers assigned to CBEC for appointment of Standing Counsels to handle litigation of Indirect Taxes before various High Courts - Guidelines regarding mechanism of appointment of counsels and their terms and conditions - circular F.no. 278A/43/2007-legal, dated 5-12-2007

- Amendments to the Central Excise (Compounding of Offences) Rules, 2005 - circular no. 862/20/2007-CX, dated 27-12-2007

RBI

- Data quality in Electronic Accounting System in Central Excise and Service Tax (EASIEST) - circular no. dgba.gad.no.H 7633/41.07.006/2007-08, dated 15-1-2008

Service Tax

- Amendments to Circular No. 96/7/2007-ST, dated 23-8-2007 - Clarification in respect of renting of immovable property service and works contract service - circular no. 98/1/2008-st, dated 4-1-2008

faqs

Service Tax

- FAQs on service tax

notifications

Central Excise

- Section 35B of the Central Excise Act, 1944 - Appeals to the Appellate Tribunal - Committee of Commissioners - Amendment in Notification No. 25/2005 - Central Excise (NT), dated 13-5-2005 - notification no. 41/2007-Central excise (nt), dated 19-12-2007

- Section 35B of the Central Excise Act, 1944 - Appeals to the Appellate Tribunal - Committee of Commissioners - Amendment in the Notification No. 6/2007 - Central Excise (N.T.), dated 12-2-2007 - notification no. 2/2008-Central excise (n.t.), dated 15-1-2008

- Section 35B of the Central Excise Act, 1944 - Appeals to the Appellate Tribunal - Committee of Commissioners - Amendment in Notification No. 5/2007-Central Excise (N.T.), dated 12-2-2007 - notification no. 1/2008 - Central excise (n.t.), dated 15-1-2008

- Rule 12 of the Central Excise Rules, 2002 - Filing of return - Quarterly return for production and removal of goods in Form A - notification no. 4/2008 - central excise (n.t.), dated 18-1-2008

- Section 4A of Central Excise Act, 1944 - Valuation of excisable goods with reference to retail sale price - Amendments in Notification No. 2/2006 - Central Excise (NT), dated 1-3-2006 - notification no. 5/2008 - central excise (n.t.), dated 24-1-2008

- Section 133 of the Finance Act, 2007 - Amendment of Third Schedule - Notified date - notification no. 6/2008 - central excise (n.t.), dated 24-1-2008

- Rule 19 of the Central Excise Rules, 2002 - Export without payment of duty - Amendment in Notification No. 45/2001 - Central Excise (N.T.), dated 26-6-2001 - Export under bond to Nepal or Bhutan - notification no. 8/2008 - central excise (n.t.), dated 11-2-2008

Service Tax

- Section 86 of Finance Act, 1994 - Appeals to Appellate Tribunal - Amendment in Notification No. 19/2007-Service Tax, dated 12-5-2007 - Committee of Commissioners - notification no. 44/2007-service tax, dated 19-12-2007

- Section 86(1A) of Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified committee of Commissioners - Amendment in Notification No. 18/2007-ST, dated 12-5-2007 - notification no. 46/2008 - Service tax, dated 18-1-2008

- Section 86(1A) of Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified committee of Commissioners - Amendment in Notification No. 19/2007-ST, dated 12-5-2007 - notification no. 47/2008 - service tax, dated 18-1-2008

- Section 86(1A) of the Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified committee of Commissioners - Amendment in Notification No. 18/2007 - Service Tax, 2007, dated 12-5-2007 - notification no. 1/2008 - service tax, dated 18-1-2008

- Section 86(1A) of Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified committee of Commissioners - Amendment in Notification No. 19/2007 - Service Tax, 2007, dated 12-5-2007 - notification no. 2/2008 - service tax, dated 18-1-2008

- Section 86(1A) of Finance Act, 1994 - Appellate Tribunal - Appeals to - Notified Committee of Commissioners

n Corrigendum to Notification No. 46/2008-ST, dated 18-1-2008

n Corrigendum to Notification No. 47/2008-ST, dated 18-1-2008

- Section 93 of the Finance Act, 1994 - Power to grant exemption from service tax - Taxable services specified in schedule received by an exporter and used for export of goods - Amendment in Notification No. 41/2007 - Service Tax, dated 6-10-2007 - notification no. 3/2008-service tax, dated 19-2-2008

press release

Service Tax

- The services provided by the lawyers in their professional capacity are not subjected to Service Tax - press release, dated 26-11-2007

- Service Tax chargeable, if the service provider and service receiver are both located outside Jammu and Kashmir - press release, dated 26-11-2007

- Registration procedure

rules/amdt. rules

Central Excise

- Central Excise (Compounding of Offences) Amendment Rules, 2007 - Amendment in rule 4 and Form; substitution of rule 5 - notification no. 42/2007-Central excise (nt), dated 27-12-2007

- Central Excise (Amendment) Rules, 2008 - Amendment in rule 12 - notification no. 3/2008 - central excise (n.t.), dated 18-1-2008

- Central Excise (Second Amendment) Rules, 2008 - Amendment in rule 11 - notification no. 7/2008 - central excise (n.t.), dated 25-1-2008

Service Tax

- Service Tax (Sixth Amendment) Rules, 2007 - Amendment in rule 5; insertion of rule 5A - notification no. 45/2007-service tax, dated 28-12-2007

trade notice

Central Excise

- Instruction regarding proper filling of GAR-7 - trade notice no. 68/2007, dated 5-11-2007

Service Tax

- Designation of Officers in Service Tax Commissionerate, Ahmedabad for recovering Government dues - trade notice no. 21/2007-08, dated 5-12-2007

- Instructions for proper filling up of Commissionerate Codes in TR-6 and GAR-7 Challans - trade notice no. 22/2007-08, dated 7-12-2007

- Certain documents required to be submitted along with ST-1 application for purpose of registration of Service Tax assessees - trade notice no. 13/

2007, dated 14-9-2007

Chronological List of Circulars & Notifications, etc.

 

circulars

Central Excise/Customs

- circular F.no. 278A/43/2007-legal, dated 5-12-2007

- circular no. 862/20/2007-CX, dated 27-12-2007

RBI

- circular no. dgba.gad.no.H 7633/41.07.006/2007-08, dated 15-1-2008

Service Tax

- circular no. 98/1/2008-st, dated 4-1-2008

notifications

Central Excise

- notification no. 42/2007-Central excise (nt), dated 27-12-2007

- notification no. 41/2007-Central excise (nt), dated 19-12-2007

- notification no. 2/2008-Central excise (n.t.), dated 15-1-2008

- notification no. 1/2008 - Central excise (n.t.), dated 15-1-2008

- notification no. 4/2008 - central excise (n.t.), dated 18-1-2008

- notification no. 5/2008 - central excise (n.t.), dated 24-1-2008

- notification no. 6/2008 - central excise (n.t.), dated 24-1-2008

- notification no. 7/2008 - central excise (n.t.), dated 25-1-2008

- notification no. 8/2008 - central excise (n.t.), dated 11-2-2008

Service Tax

- notification no. 44/2007-service tax, dated 19-12-2007

- notification no. 46/2008 - Service tax, dated 18-1-2008

- notification no. 47/2008 - service tax, dated 18-1-2008

- notification no. 1/2008 - service tax, dated 18-1-2008

- notification no. 2/2008 - service tax, dated 18-1-2008

- notification no. 3/2008-service tax, dated 19-2-2008

- Corrigendum to Notification No. 46/2008-ST, dated 18-1-2008

- Corrigendum to Notification No. 47/2008-ST, dated 18-1-2008

rules/amdt. rules

Central Excise

- notification no. 3/2008 - central excise (n.t.), dated 18-1-2008

Service Tax

- notification no. 45/2007-service tax, dated 28-12-2007

trade notice

Central Excise

- trade notice no. 68/2007, dated 5-11-2007

Service Tax

- trade notice no. 21/2007-08, dated 5-12-2007

- trade notice no. 22/2007-08, dated 7-12-2007

- trade notice no. 13/2007, dated 14-9-2007

Reports

Table of cases

Aanex Services v. CCE (New Delhi - CESTAT)

Adage Outdoor Advertising (P.) Ltd. v. CC&CE (Bang. - CESTAT)

Agarwal Colour Advance Photo System v. CCE (New Delhi - CESTAT)

Agarwal Trading Co. v. CCE (Mum. - CESTAT)

Akila Textiles v. CCE (Chennai - CESTAT)

Allengers Medical Systems Ltd. v. CCE (New Delhi - CESTAT)

Amara Raja Batteries Ltd. v. CCE (Bang. - CESTAT)

Amaresh Enterprises v. CCE&C (Kol. - CESTAT)

Anjali Foods v. CCE (Chennai - CESTAT)

Aravind Fashions Ltd. v. CST (Bang. - CESTAT)

Arc. Dinesh Burad v. CCE&C (Mum. - CESTAT)

Arun Textiles (P.) Ltd. v. CCE (ST) (Chennai - CESTAT)

Aruna Sunrise Hotels Ltd. v. CCE (Chennai - CESTAT)

Ascon Marketing Services v. CST (Bang. - CESTAT)

Aurobindo Pharma Ltd. v. CCE (Bang. - CESTAT)

BPL Mobile Cellular Ltd. v. CCE (Chennai - CESTAT)

Bax Global India Ltd. v. CST (Bang. - CESTAT)

Behr GmbH & Co. v. CCE (Mum. - CESTAT)

Bellary Computers v. CCE (Bang. - CESTAT)

Bharat Sanchar Nigam Ltd. v. CCE (Mum. - CESTAT)

Bharati Tele-Ventures Ltd. v. CCE&C (Mum. - CESTAT)

Bhushan Power & Steel Ltd. v. CCE&ST (Kol. - CESTAT)

Bhuvaneswari Agencies (P.) Ltd. v. CCE (Bang. - CESTAT)

Bidhata Industries (P.) Ltd. v. CCE (Mum. - CESTAT)

Binu John v. CCE (Bang. - CESTAT)

Brakes India Ltd. v. CCE (Chennai - CESTAT)

CMS (India) Operations & Maintenance Co. (P.) Ltd. v. CCE (Chennai - CESTAT)

Campus Service (India) (P.) Ltd. v. CCE (Chennai - CESTAT)

Car World Autoline v. CCE (Bang. - CESTAT)

Centre for Management Development v. CCE (Bang. - CESTAT)

Cethar Vessels (P.) Ltd. v. CCE (Chennai - CESTAT)

City Gold Metal (P.) Ltd. v. CCE&ST (Kol. - CESTAT)

Clariant Chem. India Ltd. v. CCE (Mum. - CESTAT)

Cochin International Airport Ltd. v. CCE (Bang. - CESTAT)

Cochin International Airport Pre-paid Taxi Operators Co-operative Society Ltd. v. CCE (Bang. - CESTAT)

Colgate Palmolive (I) Ltd. v. CCE (Mum. - CESTAT)

CCE v. Adishiv Forge (P.) Ltd. (Ahd. - CESTAT)

CCE v. Alcatel Modi Network System Ltd. (Punj. & Har.)

CCE v. Chambal Motors (P.) Ltd. (New Delhi - CESTAT)

CCE v. Ferrous Alloys Forgings (P.) Ltd. (Punj. & Har.)

CCE & ST v. First Flight Couriers Ltd. (Kar.)

CCE&C v. Industrial Security Force (Kol. - CESTAT)

CCE v. Flowserve Microfinish Pumps (P.) Ltd. (Bang. - CESTAT)

CCE v. Indian Oil Corporation Ltd. (Chennai - CESTAT)

CCE v. M.M. Thakkar & Sons (Bom.)

CCE v. R.S. Financial Services (New Delhi - CESTAT)

CCE v. Vraj Agency (Mum. - CESTAT)

CST v. BPL Engineering Ltd. (Bang. - CESTAT)

CST v. Global Enterprises (Kol. - CESTAT)

CST v. Peekay & Co. (Kol. - CESTAT)

CST v. Tractors and Farm Equipment Ltd. (Bang. - CESTAT)

Dalveer Singh v. CCE (New Delhi - CESTAT)

Dhanshree Publicity v. CCE (New Delhi - CESTAT)

Dharwad Co-operative Milk Producers’ Societies Union Ltd. v. CCE (Bang. - CESTAT)

Diebold Systems (P.) Ltd. v. CST (Chennai - CESTAT)

Doon Security Services v. CCE (New Delhi - CESTAT)

Durairaj Mills Ltd. v. CCE (Chennai - CESTAT)

EID Parry (India) Ltd. v. CST (Chennai - CESTAT)

Eagle Detective Force v. CCE (Bang. - CESTAT)

Encode India Advertising v. CC&CE (Bang. - CESTAT)

Essvee Express Logistics (P.) Ltd. v. CST (Bang. - CESTAT)

Evergreen Suppliers v. CCE (Bang. - CESTAT)

Febin Advertisers v. CCE (Bang. - CESTAT)

GAC Shipping (India) (P.) Ltd. v. CCE&C (Bang. - CESTAT)

Ganesh Maniyani v. CCE (Bang. - CESTAT)

General Manager, Telecom BSNL v. CCE (Mum. - CESTAT)

Glaxo Smith Kline Pharmaceuticals Ltd. v. CST (Bang. - CESTAT)

Globe College of Travel & Tourism v. CST (Bang. - CESTAT)

Gokhatak Enterprises Ltd. v. CCE&C (Mum. - CESTAT)

Golden Security Service v. CCE (Kol. - CESTAT)

Great Lakes Institute of Management Ltd. v. CST (Chennai - CESTAT)

Great Lakes Institute of Management Ltd. v. CST (Chennai - CESTAT)

Gujarat Chemical Port Terminal Co. Ltd. v. CCE&C (Ahd.) (TM)

Gwalior Distilleries Ltd. v. CCE (New Delhi - CESTAT)

Harsh Marketing v. CCE (Mum. - CESTAT)

ITW India Ltd. v. CCE&C (Kol. - CESTAT)

Imagic Creative (P.) Ltd. v. CCT (SC)

India Cements Ltd. v. CCE (Bang. - CESTAT)

Indus Motor Co. v. CCE (Bang. - CESTAT)

JMC Educational & Charitable Trust v. CCE (Chennai - CESTAT)

Jaded Siddappa & Co. v. CST (Bang. - CESTAT)

Jai Steels (I) v. CCE (New Delhi - CESTAT)