A transaction in intellectual property (IP) along with the right to manufacture the licensed product is totally different from the technical assistance rendered by an engineer or a firm of engineers; when IP services are brought under the tax net without altering the scope of “Consulting Engineer Service” the new impost covers an activity hitherto not exigible to service tax under the head Consulting Engineer.
Rule-2(l) of Cenvat Credit Rules does not require that service has to be rendered at the factory of the manufacturer for the purpose of eligibility for service tax credit. Therefore the stand of the revenue that since the service was provided at the buyer’s premises credit is not admissible cannot be accepted. What has to be examined is whether the service provided is in or in relation to manufacture.
We have gone through the contracts entered into between the assessee and its clients. As per the contract with TCS, Focus would provide technical assistance of choice personnel to work on the computer software development, implementation and maintenance of specific project to be allocated by TCS.
Normally vehicles changed hands from the manufacturer to the customers through the authorized dealers and the customers can arrange finance independently through any other person; if the third party has arranged the finance to the buyer of the vehicle, the services of the said third party would undoubtedly come under the business auxiliary services.
Whether the contracts of IOCL and BPCL with L&T can be held to be divisible and therefore service tax can be levied on the services part as held by Member (Technical) or whether the contracts between the appellants and IOCL & BPCL to be held as not divisable and therefore not liable to service tax as held by Member (Judicial)? Whether the contract between GEB and the appellants
Lafarge India Pvt. Ltd. V. CCE (CESTAT Delhi) – Merely credit was taken by the assessee and not utilized and not taken any advantage of such credit, payment of interest is not sustainable. There is no allegation that the appellant utilized or taken any advantage of the credit and therefore recovery of interest is set aside.
NICHOLAS PIRAMEL (I) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, THANE-I- The provisions of Rules 6(3)(b) of the Cenvat Credit Rules, 2002 are not applicable when the amount equivalent of the Cenvat Credit attributable to the common inputs used in, or in relation to, the manufacture of exempted final products has been paid prior to the removal of exempted final products from the factory.
Whether the assessee is entitled to take cenvat credit on the basis of supplementary invoice of the manufacturer in case additional duty of excise is paid suo motu on receipt of the show cause notice alleging wilful mis-statement or suppression of facts or contravention of the provisions of the Central Excise Act or the Rules with intent to evade duty invoking proviso to Sub-Section (1) of Section 11A of the Act?
Employment of outdoor caterer for providing catering services has to be considered as an input service relating to the business and cenvat credit in respect of the same will be admissible.
CC&CE Vs. Beekay Enterprises (CESTAT Delhi) – Penalty can be imposed within the framework of Section 11AC of the Act. Rule 25 of the Central Excise Rules which deals with penalty also can be applied subject to provisions of Section 11AC. As indicated above, penalty can be imposed when non payment or short payment of duty etc. was actuated by fraud, collusion, wilful mis-statement or suppression of facts or contravention of any of the provisions of the Act or rules made thereunder “with intent to evade payment of duty”. Even if a case of suppression of facts or contravention of any provision were made out, it is clear that suppression or contravention per se would not justify imposition of penalty unless it was made intentionally in order to evade payment of duty.
