News Update

GST - Sushil Modi further sensitises Infosys; EDIT facility for returns to be activated soonGovt sets up Second National Judicial Pay CommissionImpact of Moody's rating upgrade - NHAI projects become less riskyIT infra missing at many Customs stations - CBEC Chairperson asks for speeding up installation of netwrok equipmentsIncome Tax seizes cash to tune of Rs 11 Crore from NSE brokerAustralians support same-sex marriage in national surveyDigital economy to the fore again (See 'TII EDIT')Renewable Energy - Challenge is research in storage technologyICAO Audit finds safety system in placeI-T - Interest received towards late payment following award passed by District Court is taxable income: HCPM reviews performance of key infra projectsCX – Blinds are in nature of curtains and cannot be said to become immovable properties when they are mounted on wall: CESTATGST Administration facing acute manpower shortage at Group 'A' level; About 1900 posts remain vacant against over 5800 posts in CBECJD(U) election symbol - EC verdict out; Nitish faction defeats Sharad Yadav splinter groupSEBI bans Swarnabhumi Agritech India & its Directors for four yearsGST - MRP - additional stickers allowed upto Dec 31, 2017CBDT invites comments of stakeholders for conversion of Indian branches of foreign banks to Indian subsidiary companyMoody's upgrade India's credit rating to Baa2CBDT issues transfer order of 7 DC/ACITsBudget 2018 - MoF invites suggestions from Industry and TradeCommerce Minister to participate in Shanghai Cooperation Organization meetingGST - CBEC clarifies on refund of unutilised ITC of GST paid on inputs by fabric exportersCBDT issues transfer order of 8 Addl / JCITsGST - FICCI steps up demand for inclusion of natural gasRevenue Secretary welcomes Moody’s upgraded rating; GST gets full creditGST receipts - Agency commission to banks - Mumbai office of RBI to settle all claimsTaxability of High Sea Sales under Customs & GST - A detailed analysisSiliguri DRI seizes over 7 kg gold worth Rs 2.3 Crore smuggled from Bhutan & MyanmarCabinet sanctions posts of Chairman & Members of National Anti-Profiteering AuthorityUnion Cabinet extends aid to strengthen infra for judiciaryCBEC notifies new Customs exchange rates effective from November 17, 2017
 
ST - Even if output services which are exempted services are exported, service tax paid on input service is eligible for refund: CESTAT

By TIOL News Service

MUMBAI, MAR 20, 2017: THE undisputed facts are that the appellant had taken credit of service tax paid on input services received and consumed in providing output services of call centre which was undisputedly exempted. The said credit was taken in April 2006 after the call centre services were made taxable w.e.f. 01/03/2006 and the said amount of credit was utilised for payment of service tax on exported taxable service of BAS during the period October 2006 to February 2007.

Both the lower authorities have rejected the claim of the appellant and ordered for recovery of the CENVAT credit availed in April 2006 as the same were procured during the period when the call centre services was exempted.

Before the CESTAT, the appellant submits that the issue of eligibility to credit in respect of call centre service exported prior to 01/03/2006 has been settled by various decisions of the Tribunal; that in the case of IBM Daksh Business Process Service (P) Ltd. - 2014-TIOL-648-CESTAT-DEL the department rejected the refund under Rule 5 on the ground that the service provided by the appellant is exempted under Notification No. 8/2003-ST but the Tribunal had allowed the refund.

The Bench held that the stand of the department is incorrect as even if the output service which are exempted services and are exported, service tax paid on input service is eligible for the refund and which is the law decided by the KarnatakaHigh Court in the case of mPortal India Wireless Solutions Pvt Ltd - 2011-TIOL-928-HC-KAR-ST.

Holding that the issue is squarely covered by the decisions (supra), the impugned order was set aside and the appeal was allowed with consequential relief.

(See 2017-TIOL-898-CESTAT-MUM)


POST YOUR COMMENTS