TaxTMI 
TaxTMI 
2024 (4) TMI 328
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....at the appellants recovered advances to the tune of 5,65,79,232/- for provision of services and have not discharged Service Tax on the same; that the appellants have received services from their associated enterprises abroad for which though expenses were booked in the balance sheet, the appellants did not make remittances and did not pay applicable service tax on the same and that during the period May 2008 to August 2008 , the appellants have failed to pay Service Tax on the services received from their associated companies. A show cause notice dated 21.10.2009 was issued to the appellants seeking Service Tax on the above issues. Commissioner (Adjudication) New Delhi, vide the impugned order, confirmed a demand of Rs. 2,01,45,539 along with interest; imposed penalties of Rs,3,00,00,000 under Section 78 of the Finance Act 1994; of Rs.10,000/- under Section 77 Ibid, read with Rule 15 of Cenvat Credit Rules, 2002/2004 and of Rs.200/- or 2% whichever is higher under Section 76. Hence,this appeal. 3. Shri Deepak Thakur,Learned Counsel for the appellants submits that demand of Rs.96,92,204/- is not maintainable as Rule 6 of Cenvat Credit Rules, 2004 is not attracted on supplies made....
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....of Service Tax, New Delhi [2014 (36) S.T.R. 556 (Tri. Del.)] • Sify Technologies Ltd. vs. Commissioner of C. Ex. & S.T., LTU, Chennai [2015 (39) S.T.R. 261 (Tri.Chennai)] , 2011 (21) S.T.R. 252 (Tri. Chennai), 2011 (24) S.T.R. 499 (Tri. Chennai) • M/s Indian Machine Tools Manufacturers Association vs. Commissioner of Central Excise, Panchkula [Service Tax Appeal No. 4174 of 2012] • Go Bindas Entertainment Pvt. Ltd. vs. Commissioner of S.T., Noida [2019(27) G.S.T.L. 397 (Tri. - All.)] • Synergy Audio Visual Workshop P. Ltd. vs. Commissioner of S.T.. Bangalore [2008 (10) S.T.R. 578 (Tri. - Bang)] • M/s M.P. Audyogik Kendra Vikas Nigam vs. Principal Commissioner of • Central Goods & Service Tax and Central Excise, Indore [2023-VIL-466- CESTAT-DEL-ST] • Ramkrishna Sales Pvt. Ltd. vs. Commissioner of Customs, Ahmedabad [2008 (230) E.LT. 431 (Tri. Ahmd.)] • Sarita Software & Indus Ltd. vs. Commissioner of C. Ex., Visakhapatnam [2010 (251) E.L.T. 248 (Tri. Bang.)] • Indian National Shipowners Association and Another vs. Union of India and Others [(2009) 21 VST 60] 23. M/s G....
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...., whether called "Suspense account or by any other name, in the books of account of a person liable to pay service tax;the gross amount charged as defined under Section 67(3) (c) of the Finance Act was also amended to provide 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. He further submits that the clarification issued by the Board vide DOF No.334/1/2008 dated 29.02.2008 also supports the above view; the cases of M/s Sify and M/s GECAS (both supra), though in favour of the appellants, appeal preferred by the Department is pending decision at the Hon'ble Apex Court. 5.1. As regards, the demand of service tax on advances received from customers and non-payment of interest amount on delayed payment of service tax, learned Authorized Representative submits that the Adjudicating Authority has ....
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....1 Further, the Hon'ble High Court of Bombay, in the case of Repro India Ltd., reported in 2009 (235) E.L.T. 614 (Bom.) held that the provisions of Rule 6(3)(b) of the Cenvat Credit Rules are not attracted in the case of exports as Rule 6(6)(v) provides an exception in the case of clearances for export. As per Section 2(m) of Special Economic Zones Act, 2005, supplying goods, or providing services, from a unit in DTA to a SEZ unit or SEZ developer is deemed as "export" and vide Section 50 of the said Act, the provisions of SEZ Act shall prevail over the provisions of other enactments. Thus supplies made to SEZ or SEZ developer amounts to "export". Viewed from this perspective also, the appellants are rightly entitled to Cenvat credit on the inputs and input services used in or in relation to rendering of output services to a unit in SEZ or to a SEZ developer. 8. Coming to the Second demand, on the basis of the advances received by the appellants for rendering the services, we find that the demand is raised and confirmed on the basis of figures reflected in balance sheet without causing any enquiry as to whether the services in question were rendered or otherwise. We find th....
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.... prior to the realization of taxable services, in any circumstances. This being so, it is not legally permissible to give retrospective effect to the Explanation inserted in Rule 6 of the Service Tax Rules. The Legislative intention behind the amendments was explained by the Board as for plugging avoidance of tax on the ground of non-realization of money from associated enterprises and the intention of the Legislature in bringing the amendments is to introduce a new provision and not to remove any doubts in the existing provision. It is not, nor can it be, anybody's case that Explanation shall always take effect retrospectively. In the case of Commissioner of Customs v. Skycell Communications Ltd. [2008 (232) E.L.T. 434], the Larger Bench of the Tribunal has held that Explanation placing restrictions prejudicial to the assessee will not be retrospective. In the case of CCE, Shillong v. Vinay Cement Ltd. [1999 (114) E.L.T. 753], the Tribunal has held that since a notification inserting an Explanation has specifically stated that it would be effective from the date of its publication, it takes effect only from that date. In the instant case also, Notification No. 19/08 introducing Ex....