Service tax Penalty for late payment cannot exceed tax amount

S.K. Star Cable Network Vs Commissioner of Central Excise (CESTAT Delhi)

The ld. A.R. submits that penalties have been imposed because they did not pay in time the tax due. We find that there is no case for imposing penalty for an amount more than net tax liability. So the penalty under Section 78 is reduced to Rs. 18,889/-. Further, penalty under Section 76 is waived and also the appellant is given an opportu...

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Restriction to use 20% of credit in case of non-maintenance of separate Cenvat a/cs for taxable & exempted services is only in respect of inputs service credit

Bharat Sanchar Nigam Ltd. Vs Commissioner of Central Excise, Meerut-II (CESTAT Delhi)

Learned Advocate submits that lower authorities have also taken into account the Service Tax availed on the capital goods whereas the restriction of 20% utilisation is only in respect of the input service credit. He draws my attention to two precedent decision of the Tribunal in the same appellants case being BSNL v. CCE&C [2009] 21 STT 1...

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Tea & snacks provided by canteen service provider (outdoor caterer) along with meals are prima facie eligible for abatement

Surinder Kumar Mittal Vs Commissioner of Central Excise, Chandigarh (CESTAT Delhi)

The Counsel for the appellant submits that for the purpose of calculation, Revenue is taking into account the entire receipts of the appellants whereas the taxable value should be taken after allowing abatement of 50% in terms of Notification No. 1/-90ST and once only taxable value is taken into account, the turnover is below the value as...

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Once payment of service tax made by service provider to Treasury, assessee may not be denied benefit of Cenvat credit subject to proving use of service in accordance with law

Jayaswals Neco Industries Ltd. (Steel Plant Div.) Vs Commissioner of Central Excise (CESTAT Delhi)

Once the payment of service tax had been made by service provider to Treasury, assessee may not be denied the benefit of Cenvat credit, subject to appropriate examination of the allegation in the show-cause notice and proving use of the service in accordance with law. The original authority had to be satisfied that requirement of rule 9(5...

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Service Tax on Renting – Immovable property do not include hotels, hostels, boarding houses, Residential House property

M/s Paradise Mehak Properties Pvt Ltd Vs Commissioner of Centra

Appellant has rented out / leased the land along with the entire building, swimming pool and restaurant, bar, parking etc. with all the facilities as provided in the base building and the amenities and facilities under an agreement on monthly rental basis and a hotel is being run in the said building by M/s. Royal Orchid Banjara Pvt. Ltd....

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GTA service from factory gate to port of shipment is an input service & Eligible for Cenvat Credit

Commissioner of Central Excise, Chandigarh-II Vs Nahar Spinning Mills Ltd. (CESTAT Delhi)

Hon'ble Tribunal in the case of Commissioner of Central Excise, Rajkot v. Adani Pharmachem (P.) Ltd. - 2008 (12) STR 593 (Tri-Ahmd) cited by the appellants has held that in case where the sale is on FOB/CIF basis, the place of removal has to be load port only. Further in the case of Cauvery Stones Impex Pvt. Ltd. v. Commissioner of Centra...

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Tax can not be claimed from both service provider & recipient

Commissioner of Central Excise, Kanpur Vs Om Tea Company (CESTAT Delhi)

Bench held that When the transporter is same and recipient is respondent and there is no contradiction that tax was collected from the transporter, double taxation on the same transaction is inconceivable under the present provisions of Finance Act, 1994. ...

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Service Tax Payable on Reimbursement of ‘Integral and inseparable’ expenses

Commissioner of Central Excise, Indore Vs International Logistics (CESTAT Delhi)

Expenses incurred to provide taxable services shall be part of assessable value if such expenses are inseparable and are integrally connected with the performance of the taxable services. Such expenses shall necessarily form part of the assessable value. Therefore, the assessee was not entitled to any relief on account of expenses not dis...

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Service Tax on study materials provided by Commercial training or coaching service provider

FIITJEE Ltd. Vs Commissioner of Service Tax, Delhi (CESTAT Delhi)

Prima facie coaching material has intimate connection with the commercial coaching provided by the assessee and the contents of the study material are relevant to the coaching to make the later fruitful and meaningful so that the enrolled candidates are benefited out of commercial coaching. There was no evidence to effect that these coach...

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Service Tax – Things to consider to grant benefit of Section 80 of Finance Act, 1994

B.S. Cable Network Vs Commissioner of Central Excise (CESTAT Delhi)

Since the appellant prays that it has a case for consideration under Section 80 of the Finance Act, 1994 it is desirable to bring to record about the date on which liability arose, date of return ought to have been filed, date on which admitted tax liability should have been discharged and the date of discharge of duty liability. If these...

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August 2021