Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
Foreign currency remittances were not taxable merely because they were made in foreign currency: the Tribunal held that reverse charge applies only where there is an import of service, so payments linked to import of goods, unidentified transactions, and currency fluctuation entries could not be taxed absent proof of taxable service. Services for events, exhibitions, accommodation and related reimbursements incurred and consumed outside India were outside the taxable territory and not liable to service tax. Reimbursements and year-end accrual entries later reversed were also not taxable for the period involved. The Tribunal further held the dispute was revenue neutral and the extended limitation period was not invocable, so the demand, interest and penalties were set aside.
Foreign currency remittances were not taxable merely because they were made in foreign currency: the Tribunal held that reverse charge applies only where there is an import of service, so payments linked to import of goods, unidentified transactions, and currency fluctuation entries could not be taxed absent proof of taxable service. Services for events, exhibitions, accommodation and related reimbursements incurred and consumed outside India were outside the taxable territory and not liable to service tax. Reimbursements and year-end accrual entries later reversed were also not taxable for the period involved. The Tribunal further held the dispute was revenue neutral and the extended limitation period was not invocable, so the demand, interest and penalties were set aside.
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