Latest Uploads: Karnataka: Budget Notification - Change in rate of tax of certain items | Haryana: Revision in rate of tax on liquor | Madhya Pradesh: Amendment in MPVAT Schedule | Uttar Pradesh & Meghalaya Notification | Service Tax: Extension of e-payment deadline and of banking hours on March 31, 2015 | Tripura & Nagaland Notification | Karnataka Circular | Delhi Budget [see 'Notes & News'] | West Bengal Finance Act, 2015 | Tamil Nadu: Reduction in rate of tax on Mobile Phone | State Budgets [see 'Notes & News'] | Meghalaya: Amendment in MVAT Schedule | Telangana Notification | Educational Video: Goods and Services Tax - Need and Necessity | Rajasthan: Voluntary Amnesty Scheme for Entry Tax | Punjab: Amendment in PVAT Schedule |

Recent Updates

2015-VIL-157-CESTAT-DEL-ST|SERVICE TAX |CESTAT Cases | 30.03.2015

... ious private institutions against a consideration. Revenue is of the view that the activity undertaken by the appellant of security service is commercial in nature therefore they are liable to pay service tax – HELD - In appellant’s own case in similar set of facts where the appellants has provided security service, this Tribunal has granted unconditional waiver of pre-deposit on the premise that the amount of remuneration towards service tax has been deposited by the police into consolidated funds of the State and the income of State is not liable to tax as per Article 289 of the Constitution of India and accordingly waiv... [Read more]

... ious private institutions against a consideration. Revenue is of the view that the activity undertaken by the appellant of security service is commercial in nature therefore they are liable to pay service tax – HELD - In appellant’s own case in similar set of facts where the appellants has provided security service, this Tribunal has granted unconditional waiver of pre-deposit on the premise that the amount of remuneration towards service tax has been deposited by the police into consolidated funds of the State and the income of State is not liable to tax as per Article 289 of the Constitution of India and accordingly waiver of pre-deposit was granted. In these circumstances, the pre-deposit is not required to be asked from the appellant for consideration of their appeals - Impugned orders are set aside - Appeals are remanded to decide the issue on merits without insisting any pre-deposit [Read less]

2015-VIL-17-SC-CE|CENTRAL EXCISE |Supreme Court Cases | 30.03.2015

... xemption notification and reintroduction of same – Demand for interim period – HELD - As we find that the compounded rubber was rescinded by Notification dated 1.3.94 and reintroduced in the same manner vide another Notification issued on 28.3.1994 - Since the decision to withdraw the exemption vide Notification dated 1.3.94 was an inadvertent error and the Government realizing this mistake had reintroduced the exemption it will be treated as only corrective and clarificatory in nature - Even during the interim period from 1.3.94 to 24.4.94, the manufacturers shall continue to get the exemption – Appeal allowed... [Read more]

... xemption notification and reintroduction of same – Demand for interim period – HELD - As we find that the compounded rubber was rescinded by Notification dated 1.3.94 and reintroduced in the same manner vide another Notification issued on 28.3.1994 - Since the decision to withdraw the exemption vide Notification dated 1.3.94 was an inadvertent error and the Government realizing this mistake had reintroduced the exemption it will be treated as only corrective and clarificatory in nature - Even during the interim period from 1.3.94 to 24.4.94, the manufacturers shall continue to get the exemption – Appeal allowed [Read less]

2015-VIL-154-CESTAT-AHM-CE|CENTRAL EXCISE |CESTAT Cases | 30.03.2015

... redit for the Job Work done on the raw material supplied - The appellant reversed the cenvat credit from their cenvat account which was subsequently held to be admissible – Whether cash refund is required to be allowed to assessee for certain amount which were debited from the cenvat credit account – HELD - It is observed from the facts available that the present respondent debited certain amounts from their cenvat account. Subsequently, the credit reversed by the assessee was held to be admissible and was accordingly allowed in the cenvat account to the appellant. The credit so allowed was availed by the assessee and the ... [Read more]

... redit for the Job Work done on the raw material supplied - The appellant reversed the cenvat credit from their cenvat account which was subsequently held to be admissible – Whether cash refund is required to be allowed to assessee for certain amount which were debited from the cenvat credit account – HELD - It is observed from the facts available that the present respondent debited certain amounts from their cenvat account. Subsequently, the credit reversed by the assessee was held to be admissible and was accordingly allowed in the cenvat account to the appellant. The credit so allowed was availed by the assessee and the same also started utilising the credit in the payment of central excise duty. It is also observed that at no stage Revenue insisted the assessee to pay the amount in cash. The case laws relied upon by the First Appellate authority in OIA pertains to the situations where liability was insisted by the Revenue to be paid from PLA and assessee was prevented from utilising cenvat credit. As the facts of the relied upon the case laws are different that the present facts the same can not be pressed into service to sanction the refund in cash - The order passed by the First Appellate Authority is required to be set aside and appeal filed by the Revenue is allowed [Read less]

2015-VIL-18-SC|VAT |Supreme Court Cases | 30.03.2015

... try 24 of the notification SRO No.1727 of 1993 contemplates two categories of dealers, (i) a poultry farmer and (ii) hatcheries. What is exempted under the notification is the turnover from sales of chicks and chickens by both types of dealers. It is not specified that if a poultry farmer imports or effects inter-State purchase of chicks and chickens, it would be ousted from the purview of the notification and thus, not be entitled to the benefits of the notification. In our considered opinion, language of the notification is clear and precise. The plain reading of the entry in the notification herein neither reflects any ... [Read more]

... try 24 of the notification SRO No.1727 of 1993 contemplates two categories of dealers, (i) a poultry farmer and (ii) hatcheries. What is exempted under the notification is the turnover from sales of chicks and chickens by both types of dealers. It is not specified that if a poultry farmer imports or effects inter-State purchase of chicks and chickens, it would be ousted from the purview of the notification and thus, not be entitled to the benefits of the notification. In our considered opinion, language of the notification is clear and precise. The plain reading of the entry in the notification herein neither reflects any ambiguity nor creates confusion as to contents of the notification and therefore, we need not look into the object and purpose of the notification which prompted the State authorities to frame and issue the aforesaid notification – Revenue is not justified in disallowing the exemption claimed by the assessee with respect to the sale of chicks and chickens brought from outside the State – Appeal allowed [Read less]

2015-VIL-141-KER-ST|SERVICE TAX |High Court Cases | 30.03.2015

... a remedy before the Tribunal as introduced vide the Finance (No. 2) Act, 2014 w.e.f. 6 August 2014 will be applicable for a dispute/litigation that had arisen prior to the said amendment – HELD - In that view of the matter, the petitioner, in whose case also the lis commenced in 2012, would not be required to deposit the amount of 7.5%, as required pursuant to the 2014 amendment, and in that respect, he would have an efficacious alternate remedy before the Tribunal where he can file an appeal, together with an application for waiver of pre-deposit and stay of recovery of the amounts confirmed against him. At the time of fi... [Read more]

... a remedy before the Tribunal as introduced vide the Finance (No. 2) Act, 2014 w.e.f. 6 August 2014 will be applicable for a dispute/litigation that had arisen prior to the said amendment – HELD - In that view of the matter, the petitioner, in whose case also the lis commenced in 2012, would not be required to deposit the amount of 7.5%, as required pursuant to the 2014 amendment, and in that respect, he would have an efficacious alternate remedy before the Tribunal where he can file an appeal, together with an application for waiver of pre-deposit and stay of recovery of the amounts confirmed against him. At the time of filing the appeal, he will not be required to make any payment as a pre-condition for the hearing of the waiver application by the Tribunal. I, therefore, relegate the petitioner to the alternate remedy available under the Finance Act, 1994, as amended, of approaching the Appellate Tribunal by way of an appeal against order. It is made clear that the appeal to be filed by the petitioner would be governed by the statutory provisions, as they stood prior to the amendment introduced with effect from 16.08.2014 [Read less]

2015-VIL-153-CESTAT-DEL-CE|CENTRAL EXCISE |CESTAT Cases | 27.03.2015

... - Compounded levy scheme for induction furnace units – HELD - The only basis for denial of the exemption benefit is that this production capacity has not been achieved by some additional machinery and in this regard the Commissioner has rejected the appellant’s claim regarding purchase of some additional machinery and equipment on the ground that the claimed purchase of machinery/equipment by the appellant from outside the State of Uttaranchal is not recorded in the register maintained at the Commercial Tax Department check post - However, this finding of the Commissioner is contrary to the order dated 24/3/07 of the Depu... [Read more]

... - Compounded levy scheme for induction furnace units – HELD - The only basis for denial of the exemption benefit is that this production capacity has not been achieved by some additional machinery and in this regard the Commissioner has rejected the appellant’s claim regarding purchase of some additional machinery and equipment on the ground that the claimed purchase of machinery/equipment by the appellant from outside the State of Uttaranchal is not recorded in the register maintained at the Commercial Tax Department check post - However, this finding of the Commissioner is contrary to the order dated 24/3/07 of the Deputy Commissioner, Uttaranchal Commercial Tax Department. On going through this order, it is clear that the Commercial Tax Department has accepted the appellant’s claim regarding purchase of components of furnace from outside the state and has decided to impose penalty only on the ground that the procedure prescribed in this regard was not followed. The DC has clearly mentioned that the purchases of the assessee have been found recorded in their books of accounts - In view of this, the ground on which the Commissioner has rejected the appellant’s claim regarding purchase of the induction furnace components is not correct. Moreover, it is also seen that the increase in the capacity had been achieved by increasing the height of the crucible and this fact has not been disputed. Once it is accepted that the increase in the capacity of crucible was achieved by increase in its height, in view of the judgment of Hon’ble Uttarakhand High Court in the case of Uttaranchal, the benefit of exemption under Notification No. 50/03-CE cannot be denied – Assessee appeal allowed [Read less]

2015-VIL-16-SC-CE|CENTRAL EXCISE |Supreme Court Cases | 27.03.2015

... tion No.1/93 dated 28.2.1993 – HELD – Reading of Para 4 of amended Notification No. 59/94-CE dated 1.3.1994 it becomes clear that amendment was brought to deny the benefit of Notification to those SSI units which have been making use of branded good for another person irrespective of whether the brand name owner himself is SSI unit or not. It was also made abundantly clear here that the requirement of affixation or brand name by the SSI unit was immaterial. That was the purpose for substituting the word "affixing" by the word "bearing" - After this amendment in para 4 it was not necessary that there has to be affixation of... [Read more]

... tion No.1/93 dated 28.2.1993 – HELD – Reading of Para 4 of amended Notification No. 59/94-CE dated 1.3.1994 it becomes clear that amendment was brought to deny the benefit of Notification to those SSI units which have been making use of branded good for another person irrespective of whether the brand name owner himself is SSI unit or not. It was also made abundantly clear here that the requirement of affixation or brand name by the SSI unit was immaterial. That was the purpose for substituting the word "affixing" by the word "bearing" - After this amendment in para 4 it was not necessary that there has to be affixation of the name or mark on the goods - The impugned order of the Tribunal is untenable and not in accordance with law - While giving its decision the CEGAT has gone by the unamended para 4 without taking into consideration the amended para and the implication thereof - non-payment of duty by the respondent was bona fide act, having nurtured a belief that it was not liable to pay the excise duty on the goods - Penalty under the provisions of Sec.11A(C) is set aside – Appeal partly allowed [Read less]

2015-VIL-140-RAJ|VAT |High Court Cases | 27.03.2015

... clusion in sales turnover - Delivery of diesel by Road through containers by the assessee to the Railways at the delivery point - Whether freight by road forms part of the sales turnover for the purposes of levy of sales tax and freight is required to be included in the sales turnover and thus sales tax is required to be levied – HELD - As per terms and conditions in the contract, the seller was required to deliver the goods at the destination after taking into consideration the transit risk and all other liability in transit - at destination on the corporation selling price to the general trade on the date of delivery for... [Read more]

... clusion in sales turnover - Delivery of diesel by Road through containers by the assessee to the Railways at the delivery point - Whether freight by road forms part of the sales turnover for the purposes of levy of sales tax and freight is required to be included in the sales turnover and thus sales tax is required to be levied – HELD - As per terms and conditions in the contract, the seller was required to deliver the goods at the destination after taking into consideration the transit risk and all other liability in transit - at destination on the corporation selling price to the general trade on the date of delivery for each supply and when there is a specific reference of delivery at consignees' storage/ consumer pumps, it prescribes that price built up will be ex-depot price plus delivery charges/octroi/local levies/ Surcharges, Transportation charges at actual Sales Tax and any other levy as applicable from time to time, it will be the responsibility of the assessee and it was the duty of the assessee to deliver the goods at the destination. The Tax Board has rightly come to the conclusion that the freight is includable in the sale price - According to the conditions of the rate contract the sale price of the petroleum products includes the actual delivery charges, freight and the transit risk of the goods is upon the assessee and as such, the amount received by the assessee from the purchasers towards delivery charges and freight falls within the definition of Sec. 2(36) of the Act - Assessee being unable to lead any evidence of the freight being charged separately and having been paid separately, the Tax Board has rightly come to the conclusion that the freight is part of the turnover and sales tax is leviable on the part of the freight – Appeal dismissed [Read less]

2015-VIL-155-CESTAT-CHE-ST|SERVICE TAX |CESTAT Cases | 27.03.2015

... Invoice number does not contain the address and registration number of the service provider – HELD - Entire averment of learned counsel is verifiable from the appeal folder. When that is examined in terms of para 4.5 of Adjudication order, that establishes truth of averment. Therefore, in absence of spurious transaction made, claim for Cenvat credit should not be denied. Accordingly, appellant succeeds for which appeal is allowed and stay application is disposed

2015-VIL-156-CESTAT-CHE-ST|SERVICE TAX |CESTAT Cases | 27.03.2015

... vice tax paid on receivable is adjustable against future liability. Tax having been deposited before arise of liability that does not given rise to the presumption of unjust enrichment by appellant also rules out realization of such tax from the service recipient. Accordingly, adjustment of such tax against future liability is undeniable. Accordingly, appeal is allowed