TaxTMI 
TaxTMI 
2014 (7) TMI 1046
X X X X Extracts X X X X
X X X X Extracts X X X X
....e appeal pertains to jurisdiction of Service Tax Commissionerate. The show-cause notice was assigned to Com missioner of Central Excise, Chennai-III Commissionerate, by the Chief Commissioner of Central Excise, Chennai Zone, in exercise of the powers conferred by Notification No. 6/2009-Service Tax, dated January 30, 2009 and the show-cause notice No. 42/2009, dated April 1, 2009 issued against M/s. Enmas Engineering Pvt. Ltd., has been reassigned to the Commissioner of Central Excise, Chennai-III for the purpose of adjudication by the Chief Commissioner of Central Excise and Service Tax, vide letter C.No.IV/16/12/2009-CZ0(ST), dated 8, 2010. In view of the above, it is requested that in Appeal No. ST/117/ 2011 filed by M/s. Enmas Engine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vice" provided to them. On May 10, 2008, Explanation (c) was inserted under section 67 of the Finance Act, 1994 and stated that "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and "book adjustment and any amount credited or debited, as the case may be, to any account, whether called 'Suspense account' or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise". Similar, Explanation was inserted in rule 6 of the Service Tax Rules, 1994. The adjudicating authority held that the Explanation is clarificatory in nature and would be appli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n is with any associated enterprises, the service tax on taxable service is liable to be paid as soon as the transaction is entered in the books of account. In the present case, the transaction of the taxable service with the associated enterprises was entered in the books of account prior to May 14, 2008 and waiting for actual remittances. A Single Member Bench of the Tribunal in the case of Sify Technologies Ltd. [2011] 46 VST 68 (CESTATChennai); [2011] 21 STR 252 (Trib-Chennai), held that the amendment was held as under (pages 74 and 75 in 46 VST): "6. The statutory provision for demanding service tax in respect of transactions between associated enterprises, immediately upon amendment, has been introduced only with effect from May 10....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ective only from the date of its publication. The amendment to section 67 is a substantive one and will be applicable only from the date of its introduction and not, retrospectively, even though the Explanation uses the expression 'for removal of doubts'. The decision of the Tribunal in Collector of Central Excise, Pune v. Bajaj Auto Ltd. [1999] 111 ELT 846 (TribMum) relied upon by the lower appellate authority to conclude that the amendment, which is clarificatory in nature, is retrospective, is not applicable in the facts of the present case, as the Tribunal held in that case that clarificatory amendments are retrospective only when they did not materially change, the existing provisions, while in the instant case, there was no pr....