Appeal allowed: conversion treated as manufacture, entitlement under Notification No.56/2002-CE and CENVAT credits reinstated, including returned and ...
The CESTAT partly allowed the appeal. The Tribunal held that preferential location charges formed part of the construction service and are eligible for abatement, setting aside a demand of Rs.37,89,467. A demand of Rs.13,15,163 for service tax on commission/consultancy income was confirmed (net payable subject to adjustment against Rs.65 lakh paid during investigation), with interest and 10% penalty leviable thereon. Demands of Rs.19.65 lakh (reverse charge) and Rs.52.99 lakh (period 01-07-2010 to 31-03-2012) were set aside as revenue-neutral or time-barred; invocation of extended limitation was rejected. Penalties against the directors under Sections 78A and 77(1)(c)(3) were vacated. Appeal allowed in part.
The CESTAT partly allowed the appeal. The Tribunal held that preferential location charges formed part of the construction service and are eligible for abatement, setting aside a demand of Rs.37,89,467. A demand of Rs.13,15,163 for service tax on commission/consultancy income was confirmed (net payable subject to adjustment against Rs.65 lakh paid during investigation), with interest and 10% penalty leviable thereon. Demands of Rs.19.65 lakh (reverse charge) and Rs.52.99 lakh (period 01-07-2010 to 31-03-2012) were set aside as revenue-neutral or time-barred; invocation of extended limitation was rejected. Penalties against the directors under Sections 78A and 77(1)(c)(3) were vacated. Appeal allowed in part.
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