Cenvat credit in respect of duty paid by the job worker has already been considered by the Tribunal and in the case of Multi Organics (P.) Ltd. v. CCE [Order Nos. A/180-181/2010/SMB/C-IV, dated 31-3-2010]. It has been held that even though the job worker is entitled to exemption under Notification No. 8/2005-ST and if he has not availed to exemption, the service tax credit would be admissible to the person who availed the services of job worker.
There is no dispute that the respondent has paid an amount as Service Tax liability on the income received from the non-members, working backwards the Service Tax liability. I find that the adjudicating authority, as correctly pointed out by the ld. Counsel, has recorded a factual finding that the respondent has not charged Service Tax on any of the amount which has been charged by him to the non-members. Both the lower authorities have correctly held that the respondent is not liable to discharge the Service Tax liability on the non-members under the category of Club & Association Services.
Tribunal has power to extend the period of stay beyond 365 days u/s.254(2A), third proviso, even if the delay in disposing off the appeal is not attributable to the assessee, there may be several other reasons for not disposing of the appeal by the ITAT.
In respect of port service, THC charges, REPO/BL charges etc. whether service provider was authorised or not, if the service tax has been paid towards port service, while granting refund, the refund sanctioning authority cannot sit in judgment to say that the service received was not port service. Once the services are covered under the statutory definition of port service and service tax has been paid, refund is admissible.
It is undisputed in this case that the respondent is providing services for loading & unloading within the premises of M/s. J.M. Baxi & Co. The judgment of the Hon’ble High Court of Jharkhand categorically has settled law in as much, that any services provided within the factory premises would not come under the definition of Cargo Handling Services
In this case appellant is engaged in the manufacture of MG craft paper and they import waste paper and use the same in the manufacture of final product. The services received are in relation to the importation of waste paper such as container charges, handling charges incurred in the port etc.
It has been held by the lower authorities that unless an assessee is able to show that the input service has nexus with the manufacture of final product, the inclusive part would not be of any help. In this case, I find that the services have been obtained for the purpose of conducting audit of the process and change of raw material suitably and the same have been presented to GTZ to receive the grant so that the company can phase out the process, which cause depletion of ozone in the atmosphere.
As regards telephone service, I find that the decision of the Tribunal in the case of ITC Ltd. v. CC&E [2009] 20 STT 110 (Chennai – CESTAT) took a view that such credit is admissible. In the absence of any contrary decision, I follow the same and hold that the appellants are eligible for credit of service tax paid on telephone services in respect of telephone installed in the residence of employees.
Appellant’s signatory director of the applicant company was abroad during the time when the orders were received from the superintendent, and when the orders were served on the consultant. It is the submission of the ld. Counsel that the appellant company or the director was not aware of the receipt of the passing of the order.
Post service tax valuation rules, the said rules provides for inclusion of free material supplied by service recipients and has been directing the assessee in other cases to deposit some amount of the Service Tex liability for the period post service Tax valuation rules as a condition to hear and dispose the appeal.
