Case Law Details
Kusum Healthcare Pvt Ltd. Vs Commissioner of Central Excise & Service Tax (ITAT Delhi)
Facts- M/s Kusum Healthcare has preferred an appeal challenging OIO demanding tax on the finding that remittances made to their branches and offices abroad is ‘consideration’ for ‘taxable service’ procured from outside the taxable territory.
Conclusion- The Tribunal in the case of Milind Kulkarni has held that deeming provision in a statue is a temporary suspension of conventional wisdom and existing legislative formulation of a concept or situation for a specified purpose and that the graft so incorporated is intended to be applied in its entirety and within the intended context.
It, then, went on to enunciate the purpose of deeming demutualization as a contrivance to assure that structuring of such dependent establishments would not provide an avenue for escapement, either overtly or covertly, from the enforcement of the levy on the ‘taxable event’; concomitantly, the deemed demutualization does not demonstrate legislative intent to tax transactions that are normal to such dependent existence.
FULL TEXT OF THE CESTAT DELHI ORDER
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