Service Tax News, Articles, Notifications and Forms

  • Jan
  • 24
  • 2015

Education Services under Negative List – Service Tax

Added In Service Tax
Charge of Service Tax on and after 1.07.2012 is defined under section 66B of the Finance Act, 1994. Section 66B states that Service Tax shall be charged at the rate of 12% on value of all taxable services i.e., other than those specified in the negative list or exempted services, which are provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.

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  • Jan
  • 21
  • 2015

CBEC- Summons not to be issued to top management of companies

Added In Service Tax
CBEC has issued instruction No. F. No. 207/07/2014-CX-6 dated 20.01.2015 directing the Central Excise officers to be very cautious before issuing summons under excise & service tax laws. The Board instructed the Superintendents to obtain prior permission of Assistant Commissioner with reasons for issuance of summons in writing.

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  • Jan
  • 21
  • 2015

Guideline for issue of summons in Central Excise & Service Tax matters

Added In Service Tax
It has been brought to the notice of the Board that in some instances, the summons under Section 14 of the Central Excise Act, 1944 have been issued by the field formations to the top senior officials of the companies in a routine manner to call for material evidence/ documents.

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  • Jan
  • 21
  • 2015

Limitation period U/s. 11B of Excise Act not applies if Service tax was not payable under law

Added In Service Tax
C K P Mandal Vs. Commissioner of Service Tax, Mumbai-II [2015-TIOL-98-CESTAT-MUM] C K P Mandal (the Appellant) is a Charitable Trust. It has two halls which are given on hire for various functions. On hire charges, the Appellant was paying Service tax under the category of Mandap keeper. The Appellant also received donations from caterers and […]

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  • Jan
  • 21
  • 2015

Audit initiated against service recipient cannot be a ground to reject VCES declaration of Assessee

Added In Service Tax
The Hon’ble High Court of Madras after observing that there was no audit initiated/ conducted against the Petitioner or in business premises of the Petitioner, held that: Audit of service recipient, SIPL is not relevant and the Petitioner was never put to notice before March 1, 2013;

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  • Jan
  • 21
  • 2015

No Service tax leviable on Chit Fund business even after June 1, 2007 -SC

Added In Service Tax
No Service tax leviable on Chit Fund business even after June 1, 2007 – SC dismisses SLP against Order of the Hon’ble AP High Court Union of India Vs. Andhra Pradesh Federation of Chit Funds [(2015) 53 taxmann.com 237 (SC)] The sub-clause (v) of Section 65(12) of the Finance Act, 1994 (the Finance Act) providing […]

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  • Jan
  • 18
  • 2015

Service Tax on Hotels & Restaurants Constitutionally Valid – Chhattisgarh HC

Added In Service Tax
i. Whether any service tax can be charged on a sale of an item or vice versa; ii. Whether in view of Article 366 (29A)(f) service is subsumed in sale of food and drinks; iii. Whether section 66E(i) of the 1994-Act is violative of Article 366 (29A)(f) of the Constitution.

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  • Jan
  • 13
  • 2015

No penalty imposable U/s. 77 / 78 of Finance Act,1994 when penalty U/s. 76 thereof was waived on the ground of reasonable cause

Added In Service Tax
No justification for imposition of penalty under Section 77 and 78 of the Finance Act, 1994 when penalty under Section 76 thereof was waived on the ground of reasonable cause Garodia Special Steels Ltd Vs. Commissioner of Central Excise, Raigad [2014-TIOL-2638-CESTAT-MUM] In the instant case, Garodia Special Steels Ltd. (the Appellant) paid Service tax under […]

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  • Jan
  • 13
  • 2015

Amount paid subsequent to Adjudication Order cannot be hit by Doctrine of Unjust Enrichment

Added In Service Tax
The Hon’ble CESTAT, Bangalore relying on the case of Gujarat State Fertilizers & Chemicals Ltd. Vs. Commissioner of Central Excise, Vadodara [2006 (205) ELT 458 (Tri.-Mumbai)], held that the amount paid subsequent to the Order of the Adjudication Authority cannot be hit by the doctrine of unjust enrichment, and as such, the Appellant is eligible for refund of the amount.

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  • Jan
  • 13
  • 2015

If Demand is due to retrospective amendment, no malafide attributable to Assessee, hence extended period cannot be invoked

Added In Service Tax
In view of judgment in L.H. Sugar case, since recipient of GTA services were liable to file return under Section 71Aof the Finance Act and Section 73 thereof, as amended by the Finance Act, 2003, did not refer to Section 71A of the Finance Act, hence, the Assessee was not covered by Section 73 of the Finance Act and the SCN is bad;

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