News Update

Vizag DRI sleuths seize 1161 kg Ganja concealed under gravel material being transported by lorryBefore GST roll-out Union of India to scrap 16 Cesses of Excise and Service Tax; to cost Rs 65,000 Crore to ExchequerPMs constituency Varanasi to host third G-20 Framework Working Group meeting on WednesdayIndian Navy to de-induct Long-Range Maritime Patrol Aircraft after 29 yearsCBI Court convicts former Oriental Bank Manager & othersST - Claim for exclusion of amounts on basis of acting as pure agent can be made only if all conditions for such concept are fulfilled: CESTATCBEC to be renamed as CBIC; to have 101 GST Commissionerates, including 50 Appeals CommissioneratesApplications invited for First Secretary (Legal) at PMI at WTO, GenevaPangs of GST - Govt sets up Working Groups to address peculiar problems of industryCX - Annual Production Capacity - Actual Production vs deemed production - Legal Fiction vs Presumption - Supreme Court refers matter to Larger BenchCBDT directs officers to grant interest waiver in certain casesOROP - Pension to be reviewed every 5 yearsIncome Tax searches lead to seizure of Rs 3625 CroreUnclaimed Deposits in Banks & Insurance Companies exceed Rs 8000 CroreCST compensation to States: Centre to release Rs 5834 Crore before Mar 31CCI imposes Rs 51K penalty on Kerala MP heading film association as PresidentCX - Any relief under doctrine of promissory estoppel can be enforced only in hands of Courts - Tribunal cannot arrogate to itself such powers: CESTAT4.5% Indians suffer from depression: MinisterDelhi Insurance Ombudsman Office gets ISO certificationCommissionerates fail to pay court fee stamp - CBEC releases ListGST Bills copies being printed; to be tabled on MondayTrump's attempt to substitute Obamacare failsGovt approves nine FDI proposals involving proposal worth Rs 659 CroreCustoms Duty on Sunflower seeds (1206 0090) for the purpose of extraction and refining of oil reduced to 10% for the period 1st April 2017 to 30th September 2017GST high on Alcohol Manufacturing IndustrySFO in UK doing well to deal with foreign bribery casesIndian Cement Industry accounts for only 7% of global needsI-T - Excess stock found during survey which did not belong to assessee but to its Karta in his individual capacity, cannot be added to assessee's closing stockCX - It is 'nature of order' of Tribunal and not 'scope of appeal' that determines maintainability: HCCus - DRI officials at wedding premises - Calling payments as voluntary is turning a blind eye to harsh realities: HCST - Since CESTAT has remanded matter, it cannot be said that any substantial question of law would arise for consideration: HC
 
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