TaxTMI 
TaxTMI 
2026 (4) TMI 1512
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....2004 [CCR] read with the proviso to section 73(1) of the Act along with interest under section 75 of the Act and imposed penalties of Rs. 6,71,24,195 under section 78 of the Act Rs. 43,260/- under section 78 of the Act read with Rule 15 of CCR Rs. 10,000/- under section 77(1) of the Act and Rs. 10,000/- under section 77(2) of the Act. 2. We have heard learned counsel for the appellants and learned authorised representative for the Revenue and perused the records. In all ten, issues on merits have to be decided in this appeal-nine of which pertain to demand of service tax and one pertains to the denial of CENVAT credit. From the submissions made by both sides, it is evident that almost all the issues were decided by precedent decisions. We proceed to discuss and decide each of the ten issues. Demand of service tax under Business Auxiliary services [BAS] (BAS) on commission received from IATA agents in respect of the tickets purchased through them (1.10.2006 to 31.3.2011)-Rs. 4,20,58,376/- 3. The appellant acted as a sub-agent of IATA agents and booked air tickets. It received commission from the IATA agents in respect of tickets purchased through them and also received comm....
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....facilitation services (1.10.2006 to 31.3.2011) Rs. 12,29,747/- 8. The appellant received consideration from its clients for providing passport and visa facilitation services to the employees of the clients. This demand of service tax has been confirmed under BSS on the charges so received by the appellant treating the consideration as one for a service related to the business of its clients. The definition of BSS under section 65(104) and section 65 (105)(zzzq) were as follows: "Section 65(104) 'support services of business and commerce' means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase order and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operations assistance for marketing, formulation of customer service and pricing policies, infrastructural support service and other transactions processing.' Section 65(105) (zzzzq) "Taxable service' means any service provided or to be provided (zzzzq) to any person....
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....ious clauses of section 65(105). Clause (zzzzq) clearly covered business support services and therefore, if any business support service was rendered, service tax had to be paid whether or not there were any circulars of the Board. 14. The next question is whether the definition of BSS under section 65 (104) included the type of activity. It clearly meant 'services provided in relation to business or commerce' and the inclusion clause further elaborates the types of activities. It is a well-settled legal position that the inclusion and exclusion clauses enlarge or restrict the 'means' part of the definition. If something is already covered in the 'means' part, there is no need to go into the includes part of the definition. If something is in the includes part of the definition, it has to be read into the definition. It is not open to anyone to ignore it. The submission of the learned counsel is that the includes part also should take its hue from the means part of the definition. Even if this argument is accepted, visa and passport facilitation services for the employees of the clients for which the business of the client is paying is definitely meant to support the business of....
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....n, we hold that service tax has to be paid on the outbound TOS. However, as there were conflicting opinions even among different benches of this tribunal, we hold that the appellant could have honestly entertained a belief that no service tax was payable. Accordingly, the demand for the extended period of limitation deserves to be set aside. We uphold the demand only for the normal period on this count and set aside the demand for extended period. Denial of benefit of notification no. 1/2006-ST dated 1.3.2006 (1.10.2006 to 31.3.2011) Rs. 1,47,07,573/- The appellant had availed abatement under notification no. 1/2006-ST dated 1.3.2006 and paid service tax on the abated value on TOS but had violated a condition of the exemption notification that no CENVAT credit should have been availed. The appellant had availed CENVAT credit on common input services such as telephone and housekeeping services. On being pointed out, the appellant reversed the CENVAT credit so taken along with interest and hence submitted that the benefit of the exemption notification may not be denied. However, the Commissioner did not agree with this submission and confirmed denying the benefit of the exempti....
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....tilised for manufacture of the duty free copper wires. 5. The case of the Excise Department is that the reversal of credit entries are not permitted by the rules. The assessee is not entitled to remove the copper wires without payment of duty since credit of the duty paid on the inputs used in the manufacture of copper wire had already been taken in accordance with Rule 57A. Once appropriate entries have been made in the register, there is no rule under which the process could be reversed. Since the credit has been taken for the duty paid on the inputs in the ledger maintained by the assessees, the assessee cannot be heard to say that no credit of the duty has been taken by it under Rule 57A. 6. It is true that the assessee has not maintained separate accounts or segregated the inputs utilised for manufacture of dutiable goods and duty free goods, as should have been done. The contention of the Department that in this situation, the assessee is not entitled to reverse the entries and get the benefit of the tax exemption is a question which merits serious consideration. There is no doubt that the assessee should have maintained separate accounts for duty free goods....
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.... Customs, Excise and Gold (Control) Appellate Tribunal dated 17th May, 1995 is set aside. There will be no order as to costs." 21. Learned counsel submitted that even in the context of the benefit of notification no. 1/2006-ST, it has been held that reversal of CENVAT credit with interest is sufficient compliance of the requirement of the condition in the following cases. a. Kaizen Enterprises Pvt Ltd vs Commissioner of Central Excise, Udaipur [2023-VIL-388-CESTAT-Del-ST] b. Dharatal Infrastructures vs Commissioner of Central Excise, Customs and Service tax, Raipur [2023-TIOL-712-CESTAT-Del] 22. Respectfully following Chandrapur Magnets and other decisions, we set aside the demand of service tax on this count. Non-payment of service tax on service charges collected for travel insurance policy for employees of corporate clients (1.10.2006 to 31.3.2011) Rs. 1,33,294/- 23. The appellant provided services related to issuance of travel insurance to the corporate clients for their employees and received service charges but did not pay service tax under BSS. The demand has been confirmed in the impugned order. 24. Learned counsel submits that his submissio....
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....enalty imposed on the appellant insofar as this part of the demand is concerned. 30. We, therefore, find no reason to interfere with this part of the demand. Wrongful availment of CENVAT Credit on interior decorator services (11.5.2008 to 31.3.2011) Rs. 43,260/- 31. The appellant had availed CENVAT credit of Rs. 43,260/- of the service tax paid on design charges for the premises used as guest house by the appellant. This was disallowed by the Commissioner on the ground that the service was not used towards providing output service. 32. Learned counsel for the appellant submits that it maintains guest houses for stay of its employees during business travel undertaken to arrange tours and travels and hence services rendered to the guest houses are directly relatable to the output service and hence the service tax paid on the design charges for the guest houses was admissible as CENVAT credit. He placed reliance on the following decisions. a. Honda Motorcycle and Scooter India Private Limited vs Commissioner of Central Excise, Delhi-III [2016 (45) STR 397 (Tri-Chand.)] b. Mangalore Refinery and Petrochemicals Ltd. vs Commissioner Mangalore [2021(52) GSTL ....
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....ation was found in the appellant's own books of accounts but the appellant had not disclosed in its ST-3 Returns. If the assessee does not disclose full facts necessary for assessment, the officer has no choice but to do the assessment based on the facts. It would have been a different matter if the appellant had an alternative explanation as to why and how the amounts were sent abroad and why they were not related to providing any service. If there are any further details in the exclusive knowledge of the appellant it is for it to disclose. Therefore, we find that the demand of service tax on receipt of this service needs to be upheld. Extended period of limitation 38. Learned counsel submits that in addition to contesting the demands on merits, the appellant also contends that extended period of limitation was wrongly invoked in this case. It is his submission that the appellant was registered with the service tax and had been filing periodical returns as required. The appellant had paid service tax and availed CENVAT credit in the manner it thought was correct. It was open to the department to have reassessed the returns and raised demands or denied CENVAT credit within th....