SIGN IN SUBSCRIBE

News Update

Tax Refund Conundrum - Odyssey of Legal MisstepsI-T- AO not barred from issuing more than one SCN; Fresh SCN seeking information is not without jurisdiction, more so where HC itself directed re-doing of assessment: HCMurthy launches Capacity Building on Design and Entrepreneurship programCash, liquor & drugs worth Rs 110 Cr seized from Jharkhand ahead of pollsI-T- Appeal before CIT(A) (NFAC) is rightly dismissed where it has been delayed by over one year without just & reasonable cause: ITATPoll-induced stress: 2 Bihar officials die of heart attack at polling boothsSixth Edition of Commandants' Conclave held in PuneSome Gujarat villages keep away from polls over unfulfilled demands from governmentI-T- Re-assessment unsustainable, where based on third party statements & not corroborated by incriminating evidence: ITATRoof-hugging inflation nudges Argentina to print first lot of 10,000 notes of pesoI-T- Re-assessment invalidated where triggerred by change of opinion, on account of being based on material already available during original assessment: ITATInvestigation finds presence of ‘boys club’ strands of culture at American bank regulatorST - Civil work for construction of tower in port area, is exempt from tax as per Notfn No 25/2007-ST; constructing draining pipes for municipal corporation is not commercial activity & so no Service Tax is payable thereon: CESTATUS alleges Russia shipping oil to North Korea more than UN-fixed quotaCus - That appellants were aware of dutiable nature of Gold found from baggage & of procedure for declaration at Customs, reveals intent to smuggle said Gold without payment of tax - conditions for valid import of Gold not satisfied either; absolute confiscation upheld: CESTATUS cancels licence to some firms found exporting materials to HuaweiCX - Excise duty is determines based on how goods are cleared - What happens to goods post their removal, is not manufacturer's lookout, unless manufacturer is involved in fraud or wilful mis-declaration: CESTATRenewables accounted for 30% of global power supply in 2023: StudyCX - Manufacturer of Single Sugar Phosphate (SSP) meant for agricultural use, cannot be held liable for use of SSP for industrial purposes, by a tertiary purchaser of SSP: CESTATCLAT 2024 exams to be held on Dec 1ST - Since the demand itself is not sustainable, question of demanding interest and imposing penalty does not arise: CESTAT
 
ST - Tour Operator Service - Activity of tour is undertaken in Srinagar and provisions of FA, 1994 are not applicable to J&K - applicant has a strong case in favour - pre-deposit waived and stay granted: CESTAT

By TIOL News Service

MUMBAI, DEC 25, 2013 : AN application was filed seeking waiver of pre-deposit of service tax of Rs.22,98,747/- with interest. The demand is confirmed by the CST (Adjudication), Mumbai on the ground that the applicant has provided taxable service of tour operator.

It is submitted by the applicant that the service is provided in Jammu & Kashmir and the provisions of the Finance Act, 1994 are not applicable to the State of Jammu & Kashmir. The applicant relied upon the itinerary which showed that the tour is Ex-Srinagar and the air rates are not included in the tour cost. Inasmuch as the demand is not sustainable, the applicant submitted.

The Revenue representative relied upon the Board circular dated 26.11.2007 to submit that the service provider and the service recipient are outside Jammu & Kashmir, therefore, liable to service tax.

The Bench held -

"4. We find that as per the brochures, the tour is Ex-Srinagar. The activity of tour is undertaken in Srinagar and the provisions of the Finance Act are not applicable to Jammu & Kashmir. Therefore, the applicant has a strong case in their favour. Pre-deposit of the dues is waived and recovery of the same is stayed during the pendency of the appeal. Stay petition allowed."

In passing : Perhaps, the Board Circular referred to is the Delhi Service Tax Commissionerate communication dated 26/11/2007 which reads -

"The doubt was raised if the services provided by a Delhi based company for conduction of topographical survey work of project area in Jammu and Kashmir is chargeable to Service Tax, if the contract for the construction of the project in the state of J & K was awarded to Mumbai based company.

It was clarified by the Board in consultation of the Ministry of Law that even if the object of service is in the state of J & K but as the service provider and the service receiver are outside the State of J & K, the Service Tax shall be chargeable from the service provider."

Also read DDT 2247 dated December 9, 2013.

(See 2013-TIOL-1905-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST