Login | Register Now | Contact Us   
 

CGST Act IGST Act UTGST Act GST (Compensation to the States) Act Addendum to the GST Rate Schedule - 03.06.2017 101st Constitution Amendment Act, 2016 Addendum to the GST Rate Schedule - 18.05.2017 GST Compensation Cess Rates Decided in the GST Council Meeting held on 18.05.2017 Chapter Wise Rate wise GST Schedule - 03.06.2017 Chapter wise GST Rate Schedule for Goods Decided in the GST Council Meeting held on 18.05.2017 Revised Threshold for Composition Scheme - 11.06.2017 IGST Exemptions Approved by the GST Council - 11.06.2017 GST Rates Approved by the GST Council - 11.06.2017 Service Tax Exemptions in GST IGST Exemption, Concession List - 03.06.2017 Composition - Rules Valuation Rules ITC - Rules Invoice, Debit & Credit Notes - Rules Payment - Rules Refund - Rules Registration - Rules Return- Rules Transition Rules Proposed CTD Document Accounts and Record Rules GST rate Schedule for Services Decisions Taken by the GST Council in the 16th Meeting - 11.06.2017 List of Services under Reverse Charge Classification Scheme for Services Under GST
kosom ammar
CEO 2011 SC 3
[Date of Order: 2011-02-17]
Free Preview
CEO 2011 SC 7
[Date of Order: 2011-02-11]
Free Preview
STO 2011 SC 384
[Date of Order: 2011-02-04]

Service Tax: Remand: Since in the present case, the Tribunal has decided the case in favour of the assessee by relying on its decision in the case of Great Lakes Institute of Management Ltd. (supra), following the decision dated 14th May, 2010, the impugned judgment is set aside and remand the case back to the Tribunal for fresh consideration in the light of insertion of Explanation in Section 65(105)(zzc) in the Finance Act, 1999 with effect from 1st July, 2003. The appeal stands disposed of.

Free Preview
CEO 2011 SC 596
[Date of Order: 2011-01-17]
Free Preview
CEO 2011 SC 11
[Date of Order: 2011-01-13]
Free Preview
STO 2011 SC 307
[Date of Order: 2011-01-13]

Service Tax: Airport service - Liability of licensee - Airport admission ticket charges collected by appellant as licensee of Airport Authority of India (AAI) - Licence fees paid to AAI every month by appellant but required fees collected from users and facilities provided to customers by appellant - AAI provided only bare space - All expenses for providing services to passengers and visitors to be borne by appellant - Agreement stipulating that licensee to pay all taxes as leviable on him - Admission ticket charges collected so as to provide amenities and facilities to passengers and visitors as per licence agreement - Appellant being person authorized by AAI to provide services in express terms and conditions, steps into the shoes of AAI for services provided based on authorisation and is liable to pay Service tax - Section 65(105)(zzm) of Finance Act, 1994. [paras 3, 5, 13, 15, 16, 17]

Free Preview
STO 2011 SC 306
[Date of Order: 2011-01-12]

Service Tax: Appeal Locus standi to file appeal - Aggrieved person - Information on contract with private parties offering buses on rent sought from appellant by Department and the same challenged in High Court - High Court order dismissing writ petition on the ground that appellant not an aggrieved person - No notice demanding Service tax issued to appellant - Department stating that liability to pay Service tax on private bus operators and show cause notices issued to them - Appellant not having locus standi to file present appeal before Supreme Court and also writ petition in High Court - Notice to be challenged by aggrieved party like private bus operators - Impugned High Court order, upheld - Section 35L of Central Excise Act, 1944 as applicable to Service tax vide Section 83 of Finance Act, 1994. [paras 3, 4, 5, 6]

Free Preview
CEO 2010 SC 16
[Date of Order: 2010-12-10]
Free Preview
CIO 2010 SC 355
[Date of Order: 2010-12-09]
Free Preview
STO 2010 SC 828
[Date of Order: 2010-12-01]

Serevice Tax:  Service in relation to mining of mineral, oil or gas during the period from 1-6-2007 to 15-5-2008 : Nature of work that was required to be carried out by the Members of the respondent Association in terms of the contract entered into by them with the ONGC, none of the following entry in the Schedule could be strictly said to be a service rendered in relation to mining of mineral, oil or gas. Such services are (A)To carry out towing and anchor handling operations in Offshore in case of AHTSs.(B) To carry men and material between base and offshore installations, as well as between offshore installations only where such facilities are available.(C) To carry out stand by and rescue operations in offshore, if required.(D)To assist in exigencies arising in offshore.(E) To carry out routine surveillance in offshore for safety and security reasons(F)Standby at SBM tankers in offshore.(G)To assist in nmooring (sic) daughter vessel to mother vessel and securing to SBM in case of AHTSs.(H)To carry out any other field work which may be within the natural capabilities of the chartered vessel, as instructed by base/field Incharge for ONGC’s own operations and that of JV/NELP partners.(I)The Vessel should available for Offshore work round the clock, 24 hours, a day during the term of the Charter Party.(J)The above work shall always be performed within the vessel’s natural capabilities and within safe parameters.” (Para 4,5,6) 

Free Preview
STO 2010 SC 920
[Date of Order: 2010-11-29]

Central Excise: Whether welding electrodes used in the maintenance of machines not eligible for credit as “inputs” under the CENVAT Credit Rules, 2002: Scope of word “include” in the definition of “input”: The word “include” in the statutory definition is generally used to enlarge the meaning of the preceding words and it is by way of extension, and not with restriction. The word ‘include’ is very generally used in interpretation clauses in order to enlarge the meaning of words or phrases occurring in the body of the statute; and when it is so used, these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import but also those things which the interpretation clause declares that they shall include.”

Therefore, it is trite that generally the word “include” should be given a wide interpretation as by employing the said word, the legislature intends to bring in, by legal fiction, something within the accepted connotation of the substantive part. (Also see : C.I.T., Andhra Pradesh v. M/s. Taj Mahal Hotel, Secunderabad - (1971) 3 SCC 550, Indian Drugs & Pharmaceuticals Ltd. & Ors. v. Employees’ State Insurance Corporation & Ors. - (1997) 9 SCC 71, T.N. Kalyana Mandapam Assn. v. Union of India & Ors. - (2004) 5 SCC 632 = 2004 (167) E.L.T. 3 (S.C.) = 2006 (3) S.T.R. 260 (S.C.). Having regard to the language of Rule 2(g) of the 2002 Rules, and the analysis of the various decisions, it appears that by employing the phrase “and includes”, legislature did not intend to impart a restricted meaning to the definition of “inputs” and therefore, the interpretation of the said term in Maruti Suzuki Limited v. Commissioner of Central Excise, Delhi-III - (2009) 9 SCC 193 = 2009 (240) E.L.T. 641 (S.C.) , may require reconsideration by a Larger Bench. (Para 14,15,16).

Appeal disposed off.

Free Preview
CEO 2010 SC 299
[Date of Order: 2010-11-18]
Free Preview
STO 2010 SC 863
[Date of Order: 2010-11-12]

Central Excise: Demand: Period of limitation: The extended period of limitation as provided by the proviso to Section 11A(1) of the Act, can only be invoked when there is a conscious act of either fraud, collusion, wilful mis-statement, suppression of fact, or contravention of the provisions of the Act or any of the rules made thereunder on the part of the person chargeable with duty or his agent, with the intent to evade payment of duty. In the present case, the Tribunal while considering this issue has not stated whether or not there were any such circumstances which would not allow the revenue to invoke extended period of limitation. It only observes in its order since both the assessees are situated under the jurisdiction of the same division and as such it cannot be reasonable to conclude that the revenue was not aware of the transactions. This is not what is envisaged under the proviso to Section 11A(1) of the Act,(Para 16). Tribunal under the Statute is the final fact finding authority.(Para 18). Appeals allowed and matter remanded to Tribunal for reconsideration.(Para 19) 

Free Preview
CIO 2010 SC 345
[Date of Order: 2010-10-29]
Free Preview
STO 2010 SC 890
[Date of Order: 2010-10-29]

Marine Products Export Development Authority Rules, 1972 (for short, MPEDA),: Adjudication: A quasi-judicial authority, while acting in exercise of its statutory power must act fairly and must act with an open mind while initiating a show cause proceeding. A show cause proceeding is meant to give the person proceeded against a reasonable opportunity of making his objection against the proposed charges indicated in the notice.(Para 24).

Biased decision: In the instant case from the underlined portion of the show cause notice it is clear that the third respondent has demonstrated a totally close mind at the stage of show cause notice itself Such a close mind is inconsistent with the scheme of Rule 43 which is set out below. The aforesaid rule has been framed in exercise of the power conferred under Section 33 of The Marine Products Export Development Authority Act, 1972 and as such that Rule is statutory in nature.(Para 29). the entire proceeding for cancellation of registration initiated by the show cause notice and culminating in the order of cancellation is vitiated by bias(Para 39).

Principles of natural justice: while reading a show-cause notice the person who is subject to it must get an impression that he will get an effective opportunity to rebut the allegations contained in the show cause notice and prove his innocence. If on a reasonable reading of a show-cause notice a person of ordinary prudence gets the feeling that his reply to the show cause notice will be an empty ceremony and he will merely knock his head against the impenetrable wall of prejudged opinion, such a show cause notice does not commence a fair procedure especially when it is issued in a quasi-judicial proceeding under a statutory regulation which promises to give the person proceeded against a reasonable opportunity of defence.(Para 31). Therefore, while issuing a show-cause notice, the authorities must take care to manifestly keep an open mind as they are to act fairly in adjudging the guilt(Para 32).

Non-speaking order: he appellant gave a reply to the show cause notice but in the order of the third respondent by which registration certificate of the appellant was cancelled, no reference was made to the reply of the appellant, except saying that it is not satisfactory. The cancellation order is totally a non-speaking one.(Para 37).The cancellation of the registration certificate of the appellant is set aside and the registration to be treated as valid if it is not vitiated for any other reason.(Para 45). Appeal allowed.
 

Free Preview
STO 2010 SC 712
[Date of Order: 2010-10-26]

Service Tax: Hire purchase/equipment leasing companies: Taxability: For the inclusion of hire-purchase and leasing services within the service tax net, the appellant herein challenged the amendment of 2001 as ultra vires the legislative competence of the Parliament. By the impugned judgment, the Madras High Court has dismissed the writ petition, hence, this civil appeal.(Para 4). The Institute of Chartered Accountants of India (ICAI) has also issued AS-19 “Accounting for Leases”. It is mandatory in respect of financial leases executed on or after April, 2001. It inter alia provides for capitalization of finance lease assets in the books of the lessee instead of lessor. The lessor [NBFC] is required to show the assets leased only as receivables in its balance sheet instead of as fixed assets. The implication of the above AS-19 for the NBFC prescribed by RBI vide amendments to the 1998 Directions is that all financial leases would now be accounted like hire-purchase transactions [See Manual of NBFCs 9th Edition Page 268]. Similarly, under the RBI Guidelines dealing with accounting for investments, NBFCs having not less than 60% of the total assets in lease and hire purchase and deriving not less than 60% of their total income from such activities can be classified as hire purchase/equipment leasing companies(Para 18).

Banking and other financial services and sales tax: The activities undertaken by NBFCs of equipment leasing and hire-purchase finance are facilities extended by NBFCs to their customers; that, they are financial services rendered by NBFCs to their customers and that they fall within the meaning of the words “banking and other financial services” which is sought to be brought within the service tax net under Section 66 of the Finance Act, 1994. With the application of AS-19, the leased assets are required to be shown as “receivables” and not as fixed assets which further shows that equipment leasing and hire-purchase finance are financial facilities which thereby funds projects presented by the customers to banks and other financial institutions including NBFCs. Thus, the impugned tax is levied on these services as taxable services. It is not a tax on material or sale. The taxable event is rendition of service. Hence, the impugned tax is different and distinct from tax on sale of goods under Entry 54 List II of the VIIth Schedule to the Constitution.(Para 19). The funding activity undertaken by the financing party which could be in the form of loan or equipment leasing or hire- purchase financing, would be exigible to service tax if such activity falls in the category of “banking and other financial services” under Section 65(12) of the Finance Act, 1994. The financial transaction was earlier out of the tax net. In the process there are two different and distinct transactions, viz., the financing transaction and the equipment leasing/hire-purchase transaction. The former is exigible to service tax under Section 66 of Finance Act, 1994 (as amended) whereas the latter would be exigible to local sales tax/VAT. Funding or financing the transaction of equipment leasing and hire-purchase covers two different and distinct transactions. The activity of funding or financing by NBFC who is in the business of financing by giving loans, or equipment leasing or hire-purchase finance falls in the category of financial services rendered by NBFCs to their customers. It is an activity in relation to the hire-purchase or lease transaction.(Para 20). Banking and other financial services” which includes within it one of the several enumerated services, viz., financial leasing services. These include long time financing by banks and other financial institutions (including NBFCs). These are services rendered to their customers which comes within the meaning of the expression “taxable services” as defined in Section 65(105)(zm). The taxable event under the impugned law is the rendition of service. The impugned tax is not on material or sale. It is on activity/service rendered by the service provider to its customer. Equipment Leasing/Hire-Purchase finance are long term financing activities undertaken as their business by NBFCs. Thus, while State Legislature is competent to impose tax on “sale” by legislation relatable to Entry 54 of List II of Seventh Schedule, tax on the aspect of the “services”, vendor not being relatable to any entry in the State List, would be within the legislative competence of the Parliament under Article 248 read with Entry 97 of List I of Seventh Schedule to the Constitution. (Para 37).

Financial leasing services: Thus, financing as an activity or business of NBFCs is different and distinct from operating lease/hire-purchase agreements in the classical sense. The elements of the finance lease or loan transaction are quite different from those in equipment leasing/hire-purchase agreements between owner (lessor) and the hirer (lessee). There are two independent transactions and what the impugned tax seeks to do is to tax the financial facilities extended to its customers by the NBFCs under Section 66 of the 1994 Act (as amended) as they come under “banking and other financial services” under Section 65(12) of the said Act. “The finance lease” and “the hire-purchase finance” thus squarely come under the expression “financial leasing services” in Section 65(12) of the Finance Act, 1994 (as amended).(Para 21,) The lessor (NBFC) merely finances the equipment/asset which the lessee is free to select, order, take delivery and maintain. The lessor (NBFC) arranges the funding. It accepts the invoice from the vendor (supplier) and pays him. The income which the lessor earns is by way of finance/interest charges in addition to the management fees or documentation charges, etc. It is this income which constitutes the measure of tax for the purposes of calculating the value of taxable services under Section 67 of the Finance Act, 1994. Thus, a financial lease would come within “financial leasing services” in terms of Section 65(12)(a)(i).(Para 32). The service tax imposed by Section 66 of the Finance Act, 1994 (as amended) on the value of taxable services referred to in Section 65(105)(zm) read with Section 65(12) of the said Act, insofar as it relates to financial leasing services including equipment leasing and hire-purchase is within the legislative competence of the Parliament under Entry 97, List I of the Seventh Schedule to the Constitution. (Para 40).

Nature and character of service-tax: Service tax is a Value Added Tax (‘VAT’ for short) which in turn is a destination based consumption tax in the sense that it is levied on commercial activities and it is not a charge on the business but on the consumer. Every tax may be levied on an object or on the event of taxation. Service tax is, thus, a tax on activity whereas sales tax is a tax on sale of a thing or goods. (Para 22).

Tax on sale of goods/ supply of goods as part of the works contract was not a sale- Interpretation of statute : legislature cannot extend its taxing power by defining the words “sale of goods” to cover transactions which did not constitute “sale of goods” within the 1930 Act. Accordingly, it was held in Gannon Dunkerley’s case that in a building contract there was neither a contract to sell materials used in the construction nor did the property in the materials pass as movables. Accordingly, it was held that the provisions of the Madras General Sales Tax (Amendment) Act, 1947 defining a sale to include “a works contract” were ultra vires. It was held that the exercise of legislative power by the State legislature was an exercise to enlarge that power which would amount to amending Entry 54 of List II by an ordinary law which was impermissible because under that Entry the subject of the legislative power was tax on sale of goods. A hire-purchase agreement had two elements, an element of bail and an element of sale. When all the terms of the said agreement stood satisfied and the option to purchase was exercised, only at that stage sales tax would be exigible; but the legislature would have no power to tax such agreements till that stage was reached. Till that stage, a hire-purchase agreement is not a sale. (Para 23,24,25).
Accordingly, the appeals are dismissed(Para 40).
 

Free Preview
CEO 2010 SC 1158
[Date of Order: 2010-10-06]
Free Preview
STO 2010 SC 894
[Date of Order: 2010-10-04]

Service tax: Tax on import of services: Delay in filing review petition: There is delay of 181 days in filing the Review Petition for which no satisfactory explanation has been given. The Review Petition is dismissed on the ground of delay as well as merits. 

Free Preview
CEO 2010 SC 1207
[Date of Order: 2010-09-21]
Free Preview
STO 2010 SC 824
[Date of Order: 2010-09-13]

Service Tax: Commercial Training or Coaching service (computer training institute): Exemption: The notification dated 10th of September, 2004 was issued and made effective from the date of its issuance. The same did not include the concept of ‘computer training institute’ within its ambit and under the aforesaid notification, exemption was only granted to vocational and recreational training institute. A computer training institute which is defined and was included in the notification dated 20th June, 2003 was specifically excluded from the purview of the notification dated 10th September, 2004. (Para 9).Therefore, the Central Government was fully conscious of the fact that the said computer training institute should not get the exemption and intended the same to be shown by specifically excluding the same from the purview of the notification dated 10th September, 2004. The notification was also in operation from the date of its issuance, i.e., from 10-9-2004 to 15-6-2005 without there being any other intendment.(Para 10). The liability, so far as the respondent is concerned, to pay the service tax between the period 10-9-2004 to 15-6-2005, therefore subsisted.(Para 11). Appeal allowed. 

Free Preview
Previous 1 2 3 4 5 6 7 8 9 10 Next >
(DISCLAIMER: Despite all efforts have been made to reproduce the orders and other related contents correctly, there may still be chances for such errors and/ or omissions to have crept in inadvertently. The access and circulation is subject to the condition that Easy Service Tax Online Dot Com Private Limited is not responsible / liable for any loss or damage caused to anyone due to any mistake / error / omissions.)
 
 

www.centralexciseonline.com

 


www.taxolegal.com


Page copy protected against web site content infringement by Copyscape


www.customsindiaonline.com
Home | Mission | Contact Us | Acknowledgements © 2009 Copyrights, All Rights Reserved. 
Disclaimer Though all efforts have been made to reproduce the order and other contents correctly, the access and circulation is subject to the condition that EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone due to any mistake/error/omissions. Mr Certify site is constantly updated and any or all of the contents are liable to be modified, altered, deleted or replaced. EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone whether directly or indirectly  due to any modification , alteration, addition, deletion or replacement of any of the contents.

Copyright: Reproduction of news articles, photos, or any other content in whole or in part in any form or medium without express written permission of  EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is prohibited.Do not copy contents of this site. All pages are protected by COPYSCAPE. Plagiarism will be detected by COPYSCAPE.