Transfer-pricing aggregation of distinct support-service and subcontract transactions was rejected, while debt-free receivables attracted no notional ...
Customs exemptions cover photovoltaic assembly machinery and PVF backsheets, while fully declared cleared imports may avoid confiscation and penalties...
Specific tariff classification for LCD devices overrides treatment as electricity-meter parts, defeating differential duty, extended limitation, and p...
Stayed disciplinary punishment does not establish unfitness for insolvency professional registration; reconsideration must disregard mere pendency of ...
Indirect corporate control can create related-party status, excluding financial creditors from Committee of Creditors representation, participation an...
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The appellant provides warranty services to customers who purchased machines from its parent company, receiving commission on sales. The appellant made provisions in its books for expenses incurred in providing warranty services, termed as "warranty income." The department construed this "warranty income" as consideration received for repair and maintenance services during the warranty period and demanded service tax. However, the appellant had already discharged service tax on the commission received and did not receive any separate consideration for warranty services. The provisions made were as per Accounting Standard 29 to meet future expenses for fulfilling warranty obligations, not consideration received. The demand was raised solely based on book entries, assuming such figures as consideration, which is impermissible. The Tribunal held that since no separate consideration was received for warranty services, the demand cannot sustain and set aside the impugned order, allowing the appeal.
The appellant provides warranty services to customers who purchased machines from its parent company, receiving commission on sales. The appellant made provisions in its books for expenses incurred in providing warranty services, termed as "warranty income." The department construed this "warranty income" as consideration received for repair and maintenance services during the warranty period and demanded service tax. However, the appellant had already discharged service tax on the commission received and did not receive any separate consideration for warranty services. The provisions made were as per Accounting Standard 29 to meet future expenses for fulfilling warranty obligations, not consideration received. The demand was raised solely based on book entries, assuming such figures as consideration, which is impermissible. The Tribunal held that since no separate consideration was received for warranty services, the demand cannot sustain and set aside the impugned order, allowing the appeal.
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