Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
The appellant provided two services - servicing of motor vehicles and running an amusement park. The amusement park service was exempt from service tax until 1.6.2015. After that, it became taxable but the appellant did not pay service tax, claiming it was covered under the negative list or exemption. However, the tribunal held that the amusement park service was not covered under the negative list or exemption after 1.6.2015 and hence taxable. Regarding the time limitation, the tribunal held that since the appellant had a bona fide belief of non-taxability and the revenue did not scrutinize the returns, the extended period of limitation cannot be invoked. The demand for short payment of service tax under repairs and maintenance services was also time-barred. The tribunal set aside the confirmed demand of Rs. 72,94,797/- towards reversal of CENVAT credit on merits, relying on court rulings that revenue cannot demand reversal without asking for proportionate reversal. The total confirmed demand of Rs. 1,73,60,105/- was set aside due to limitation. The appeal was allowed.
The appellant provided two services - servicing of motor vehicles and running an amusement park. The amusement park service was exempt from service tax until 1.6.2015. After that, it became taxable but the appellant did not pay service tax, claiming it was covered under the negative list or exemption. However, the tribunal held that the amusement park service was not covered under the negative list or exemption after 1.6.2015 and hence taxable. Regarding the time limitation, the tribunal held that since the appellant had a bona fide belief of non-taxability and the revenue did not scrutinize the returns, the extended period of limitation cannot be invoked. The demand for short payment of service tax under repairs and maintenance services was also time-barred. The tribunal set aside the confirmed demand of Rs. 72,94,797/- towards reversal of CENVAT credit on merits, relying on court rulings that revenue cannot demand reversal without asking for proportionate reversal. The total confirmed demand of Rs. 1,73,60,105/- was set aside due to limitation. The appeal was allowed.
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