TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Commissioner (Appeals) allows appeal on service tax short payment, permits deductions for goods sold.</h1> <h3>IN RE: CRYSTAL COLOUR LAB.</h3> IN RE: CRYSTAL COLOUR LAB. - 2006 (1) S.T.R. 221 (Comm – Appeals) Issues:Short payment of service tax, applicability of deductions on taxable services rendered by a provider of photographic services.Analysis:The appeal was filed against an Order-in-Original issued by the Assistant Commissioner of Central Excise for short payment of service tax during a specific period. The appellants contended that the cost of materials sold while rendering services should not be included in the value of taxable services as per Notification No. 12/03-S.T. They argued that subsequent circulars should not negate the benefits allowed under the notification, citing relevant Supreme Court decisions.During the personal hearing, the appellants requested quashing of the original order, claiming that deductions were not permitted as per the notification. They argued that interest and penalty were unjustified as they had made complete and true declarations. The issue in dispute was the allowable deductions from the taxable value of photographic services rendered.The Commissioner (Appeals) analyzed Section 67(ii) along with Notification No. 12/2003-S.T. and a subsequent circular. It was clarified that deductions were available for goods and articles sold during the course of service, provided documentary proof was available. The judgment distinguished between goods with individually indicated prices and consumables where prices could be apportioned at the end of an assessment period.The Commissioner held that while the circular imposed limitations on the operation of the notification, substantive relief should be given precedence. Citing Supreme Court decisions, it was concluded that deductions should be allowed for consumables sold during services, even if their separate value was not shown on invoices, as long as related records of cost/value were maintained and produced as proof.In light of the above analysis, the Commissioner allowed the appeal, setting aside the impugned order. The adjudicating authority was directed to rework the duty liability after allowing deductions as per the Notification No. 12/2003-S.T. to determine the correct service tax liability.
TaxTMI 