2020 (12) TMI 1016 - AT - Service Tax

Tribunal clarifies service tax demands, upholds exemptions, and rejects retrospective amendment argument.

M/s. Indian Institute For Production Management Versus Commissioner of Central Excise, Customs & S. Tax, BBSR, Bhubaneswar

M/s. Indian Institute For Production Management Versus Commissioner of Central Excise, Customs & S. Tax, BBSR, Bhubaneswar - TMI Issues:Clarification sought on the Final Order dated 24.12.2019 regarding service tax demand on reimbursable expenses and exemption under Notifications No. 9/2003-ST and No. 24/2004-ST, and the impact of retrospective amendment in Section 65(105)(zzc) of the Finance Act, 1994 without a validation clause.Analysis:The Appellant/Applicant filed Miscellaneous Applications seeking clarification on the Final Order dated 24.12.2019 passed by the Tribunal in Appeal No. ST/137 of 2008 & ST/17/2011. The Appellant contended that the service tax demand of Rs. 19,02,103/- on reimbursable expenses for the period October 2001 to March 2006 was set aside in Para 8 of the final order, citing judgments of the Hon’ble Supreme Court. Additionally, the Tribunal extended the benefit of exemption under Notification No. 9/2003-ST and No. 24/2004-ST for other service tax demands. The Appellant argued that the retrospective amendment in Section 65(105)(zzc) without a validation clause should not affect pending proceedings, which was rejected by the Tribunal. The Tribunal found that the extended period of limitation was not applicable and set aside the demand up to March 2006 based on the contentions presented.The Department's Authorized Representative contended that the Tribunal had rejected the Appellant's argument that the retrospective amendment in Section 65(105)(zzc) would not affect the case due to the absence of a validation clause. The Tribunal considered both sides' arguments through video conferencing and reviewed the appeal records and Miscellaneous Applications. The Tribunal concluded that the clarification sought by the Appellant was unnecessary as the Final Order clearly addressed the service tax demands and exemptions under the relevant notifications. The Tribunal confirmed that the service tax demands and exemptions were appropriately dealt with in the Final Order, and no confusion existed in the judgment delivered.In the final decision, the Tribunal disposed of the Miscellaneous Applications according to the terms discussed in the judgment. The Tribunal emphasized that the service tax demand on reimbursable expenses and other demands had been addressed, exemptions were granted, and limitations were applied as per the merits of the case. The judgment was pronounced on 1st December 2020 by the Tribunal comprising Shri P. K. Choudhary, Member (Judicial), and Shri P. Anjani Kumar, Member (Technical).