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TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 1084
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....taxability of Rs. 60,57,49,157/- for drilling for oil exploration in offshore locations between July 2009 and February 2010 in the demand of Rs. 60,57,49,157/- confirmed under section 73 of Finance Act, 1994, along with interest, and imposition of penalty of like amount under section 78 of Finance Act, 1994. The second, for the period from October 2008 to February 2010, arises from recovery of CENVAT credit of Rs. 90,02,889/- on 'input' and 'input service' representing duty/tax paid on goods and services used in relation to activities that were non-taxable under rule 14 of CENVAT Credit Rules, 2004, along with appropriate interest, and penalty of like amount under rule 15 of CENVAT Credit Rules, 2004. It is on record that the credit had bee....
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....ly 2009 in view of the specific nature of their activities. This, according to her, has been settled by the Hon'ble High Court of Bombay in the Greatship (India) Ltd v. Commissioner of Service Tax, Mumbai - I [2015 (39) STR 754 (Bom.)] setting aside the order of the Tribunal, upholding liability to tax for the disputed period, thus . '35. In the present case, we find that the plain reading of the 2009 Notification would give a clear meaning and it cannot be said to be obscure. The words are clear and plain capable of giving only one meaning that the provisions of Chapter V of the Finance Act are extended to the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India. We find that the words used ....
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....is declared" are used. However, even in the absence of such words, a statute could be construed to be declaratory or clarificatory, if upon interpretation of the same such a meaning could be derived. As such, we will have to gather the legislative intent from the words used in the statute. The 2010 Notification uses the words "in supersession of the Government of India, in the Ministry of Finance (Department of Revenue) Notification No. 1/2002-S.T., dated 1-3-2002". It could thus be clear that the legislative intent is to supersede the 2002 Notification as amended in 2009 and substitute with 2010 Notification. The legislative intent could further be gathered from the following words : "except as things done or omitted to be done before such....
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....uctures and vessels, the 2010 Notification widens the tax scope and amongst various other services also brings into the Service Tax net the services rendered to or by the installations, structures and vessels. It can thus be seen that the present transaction, which is in the nature of providing services by the vessels of the appellant for the purpose of prospecting mineral oil and as such is a service consumed by the seabed of Continental Shelf of India would come in the tax net only after 2010 Notification came into effect. We are of the considered view that the said service cannot be said to be a service rendered to the installations, structures and vessels. Not only this, but the respondent also in the Order-in-Original has noted that ....
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....nsofar as the leviability of interest arise, the decision of the Hon'ble High Court of Karnataka in re Bill Forge Pvt Ltd has held that '21. Interest is compensatory in character, and is imposed on an assessee, who has withheld payment of any tax, as and when it is due and payable. The levy of interest is on the actual amount which is withheld and the extent of delay in paying tax on the due date. If there is no liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted only on delayed payment of duty i.e., where only duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person liable to pay duty, shall in addition to the duty is liable to pay ....
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....ry. In other words, he did not take the advantage of wrong entry. He did not take the Cenvat credit or utilized the Cenvat Credit. It is in those circumstances the Tribunal was justified in holding that when the assessee has not taken the benefit of the Cenvat credit, there is no liability to pay interest. Before it can be taken, it had been reversed. In other words, once the entry was reversed, it is as if that the Cenvat credit was not available. Therefore, the said judgment of the Apex Court has no application to the facts of this case. It is only when the assessee had taken the credit, in other words by taking such credit, if he had not paid the duty which is legally due to the Government, the Government would have sustained loss to tha....