Case Law Details
Isgec Unit Dahej Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
The Commissioner of Central Excise & ST (CESTAT Ahmedabad) recently addressed a crucial issue in the case of Isgec Unit Dahej. The matter revolved around the correct interpretation of an amount paid by the assessee and its appropriation under Section 73A(2) of the Finance Act, 1994. The key contention was whether the service tax on job work was exempted under Notification No. 8/2005-ST dated 01.03.2005.
Detailed Analysis
1. Assessee’s Perspective: Shri Jigar Shah, counsel for the appellant, argued that the appellant had collected service tax from the service recipient and duly paid it to the government. Hence, the proposal to treat this amount under Section 73A was not applicable. He contended that since the payment was not obligatory under Notification No. 8/2005-ST, the Adjudicating Authority’s position was incorrect. The notification is conditional, allowing the assessee to choose whether or not to avail of the exemption. Consequently, the payment made by the appellant was legally sound.
2. Revenue’s Stand: Shri P. Ganesan, Superintendent (AR), representing the Revenue, reiterated the findings of the impugned order.
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