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Govt scraps ban on export of onionFormer Delhi Congress chief Arvinder Singh Lovely joins BJP with three moreUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedGST - Payment of pre-deposit through Form GST DRC-03 instead of the prescribed Form APL-01 - Petitioner attributes it to technical glitches - Respondent is the proper authority to decide the question of fact: HC2nd Session of India-Nigeria Joint Trade Committee held in AbujaGST - Since SCN is bereft of any details and suffers from infirmities that go to the root of the cause, SCN is quashed and set aside: HC1717 candidates to contest elections in phase 4 of Lok Sabha ElectionsGST - Once Appellate Authority comes to the conclusion that SCN was issued by an officer who was not competent; reply was also considered by an incompetent authority and the Competent Authority had not applied its independent mind, Appellate Authority could not have assumed original jurisdiction and proceeded further with the matter: HC7th India-Indonesia Joint Defence Cooperation Committee meeting held in New DelhiGST - Neither the Show Cause Notice nor the order spell out the reasons for retrospective cancellation of registration, therefore, the same cannot be sustained: HCMining sector registers record production in FY 2023-24GST - If the proper officer was of the view that the reply is unclear and unsatisfactory, he could have sought further details by providing such opportunity - Having failed to do so, order cannot be sustained - Matter remanded: HCAnother quake of 6.0 magnitude rocks Philippines; No damage reported so farI-T - Initial burden of proof rested on assessee to substantiate his claim of having incurred expenditure on improvement of property: ITATTrade ban: Israel hits back against Turkey with counter-measuresI-T - Agricultural income can be treated by ITO as undisclosed income in absence of any substantial / corroborative material to prove same: ITATCanada arrests three persons in alleged killing of Sikh separatistI-T - Income from sale of property has to be classified & characterised only in manner of computation as per section 45(2): ITATCus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATGirl students advised by Pak college to keep away from political events
 
ST - Tax paid by job worker although they are entitled for exemption - assessee taking credit then reversing the same upon objection by department - as appellant has been granted relief, they can take credit without a refund claim: CESTAT

By TIOL News Service

MUMBAI, MAR 10, 2016: THE appellant is a manufacturer of parts and components of motor vehicle. They have got the job work done from the job worker i.e. the process of heat treatment of the components. The job worker has paid the service tax on the process of heat treatment and charged to the appellant. The appellant has availed the Cenvat credit of service tax amount paid by the job worker.

Department has raised the objection that the job worker activity is exempted from payment of service tax in terms of Notification No. 8/2005-(ST) dt. 1.3.2005, therefore, the job worker was not supposed to pay the service tax & since they paid the service tax wrongly without availing exemption, the appellant is not entitled to take the Cenvat credit.

Not wanting to precipitate matters, the appellant reversed the credit. In the meantime, the Department had issued SCN for disallowance of the credit.

Simultaneously, the appellant filed a refund claim for getting back the amount reversed.

The proceedings initiated under the SCN was dropped.

The refund claim was rejected on merit as well as on the ground of unjust enrichment.

The Commissioner (A) allowed the appeal of the assessee on merit but rejected refund on unjust enrichment.

The appellant is before the CESTAT.

The CESTAT observed -

"5. …I find that the basic issue under dispute was whether the appellant are entitle for the Cenvat Credit in respect of the service tax paid by the job worker and this issue has been resolved in the adjudication Order No. 06/VNL/2010-11 dt. 30.7.2010. As per the said order the appellant is entitled to take the credit. In my view, the appellant is not required to pursue the refund application as they have been granted the relief under the said order dt. 30.7.2010 itself. The appellant have not taken the credit for the reason that they were pursuing this refund matter right from show cause notice stage till this appeal stage. In my considered view, the appellant is entitled to take the credit in terms of the adjudication order dt. 30.7.2010. I also hold that for the purpose of limitation in taking the credit, the period of litigation in the present case shall stand excluded. In view of my above observation, the present appeal is dismissed as withdrawn."

(See 2016-TIOL-566-CESTAT-MUM)


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