News Update

Vinod Kumar, IRS, 2002 Batch, is no moreCabinet okays privatisation of 20 PSUs: PanagariyaIndian Industry required to move to global norms: KantDDA, DUSIB sign MoU to implement PMAY in DelhiFM inaurgurates CII Centre for Arbitration and MediationPM praises Cyprus for being 8th largest investor in India and invites Cypriots to invest in IndiaPay Commission recommendations on allowances - Lavasa panel propses modificationsCBDT signs 2 APAs relating to IT & Banking (See 'TII Brief' in TII)CBDT gives addl charge of Gujarat + Ahmedabad zones to P C Modi & Surat to Rajani K GuptaGovt to develop 100 more airports, says Jayant SinhaCentral Excise - Refunds - Passing on the incidence to the ultimate buyer - Supreme Court dismisses review petitionTariff Values of Gold, Silver and all Edible oils (except Crude Soya bean oil) reducedSimplification of tax regime to increase compliance: FMFM says no surprises likely in GST rate fixationKenyan Ambassador Karau appointed as New Chair of Agri PanelAbolition of FIPB to pave way for more FDI reforms: FMNo medical certificate required for PF withdrawal for illnessCX - Classification - Polyester Covered Yarn and Nylon Covered Yarn fall under CSH No. 5402.62/61: SCI-T - Seized material must have some nexus to additions sought to be made by AO and must be relevant for forming belief regarding escaped income: HCST - Reason that officials were involved in matters pertaining to challenge in some other matters, and, therefore, there has been delay in filing appeals is vague and cryptic: HCST For another field formation of same tax collection mechanism to take an alternative stand and, that too, for limited period of time is best described as 'tax opportunism': CESTATTrichy Customs seizes FC worth Rs 29 lakh from pax heading for MalaysiaFinance Secretary Panel submits report on allowances recommended by 7th Pay Panel; Now, Panel of Secretaries to examine itAamby Valley Reserve Price - Apex Court fixes at Rs 37392 CroreJharkhand is Third State to pass SGST law
 
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