This weekly round-up analytically summarizes the key stories related to the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reported at Taxscan.in during the previous week from July23 to July29, 2022.
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has referred a matter to the High Court for initiating ‘Contempt of Court’ proceedings against the Assistant Commissioner (Service Tax) for issuing a show-cause notice against the assessee by ignoring the Tribunal order. Mr. Anil Choudhary, Member (Judicial) observed that the refund claim was originally adjudicated by the Assistant Commissioner vide order-in-original and was rejected only on the ground of non-compliance with Condition No. 2(h) of Notification No. 27/2012 (Condition of debit of the refund amount at the time of filing of refund claim).
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad has set asides service tax demand on reimbursement of water, electricity, and diesel charges from tenant to landlord.The Tribunal observed that the expenses are mere reimbursement based on the total cost incurred by the Appellant. The total floor area of the customers is not in dispute, which shows that there is no profit element involved in the above reimbursements.
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that Cenvat credit is allowable on works contract service, construction service, consultancy, and fire protection service used for the construction of an immovable property. The Coram of Mr. P. K. Choudhary, Member (Judicial) and Mr. P. V. Subba Rao, Member (Technical) by relying on the decision of Supreme Court decision in has held that “we are inclined to allow the Cenvat credit of input services is availed by the Appellant for construction of immovable property which was further let out to various customers”. The Tribunal, with respect to the eligibility of Cenvat credit on event management services held that “we find that Rule 2(l) of the Cenvat Credit Rules, 2004 doesn’t exclude any such service from the eligibility of availing of Cenvat credit as these expenses have been incurred in the course of furtherance of business and are thus business promotion expenses and the same is eligible as Cenvat credit in our considered view.”.
The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the rejection of refund on flimsy ground would defeat the purpose of rebate schemes and the same will trap the exporters under unnecessary litigations.After hearing rival contentions from both sides, Shri P. K. Choudhary (Judicial Member) observed that there is no dispute as to the fact that the goods were exported by the appellant-assessee.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has deleted the penalty on the assessee observing that the non-deposit of service tax under RCM was due to oversight or mistake.Allowing relief to the assessee, Mr. Anil Choudhary, Member (Judicial) observed that “there is no deliberate non-compliance in depositing the tax under the RCM. That only due to oversite or clerical mistake the tax could not be deposited. Further, as the appellant is paying output tax and legal services being input service, they were entitled to Cenvat credit, and thus, the situation is revenue neutral. Accordingly, he prays that penalty imposed may be set aside.”
The Kolkata of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that duty paid on input received used for manufacturing final product is entitled to CENVAT Credit.Shri P K Choudhary, member(judicial) observed that the Appellant satisfied the essential requirements for CENVAT credit as the supplier of the input paid duty and issued a valid invoice to the Appellant.The Appellant’s factory received the input which was used to manufacture their final product and its duty-paid character was evidenced by the invoices.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has held that the service tax cannot be levied on “Pandal and Shamiana services” before 1.6.2007 since the “works contract services ” could not have been charged with service tax under any other head either before or after 1.6.2007.A division bench comprising Justice Dilip Gupta, President and Mr. P.V. Subba Rao, Member (Technical) observed that the services provided by the appellant were on turnkey basis and a composite amount is charged by the appellant for its services and for the goods used in providing them.
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Chandigarh Bench has held that there is no limitation on refund of Personal Ledger Accounts deposit (PLA) and allowed the refund.It was observed in the case of In the matter of Fluid Controls Pvt. Ltd. V/s. CCE & ST, 2018 held that “the PLA deposits are mere deposits for their utilisation in the future and the same is not the duty, in which case the provision of section 11B would not apply and if the same is not in a position to utilise, the depositor has to be held as the owner of the said amount which is required to be refunded to them in the absence of any limitation prescribed under the Act for such refunds.”
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad quashed service tax demand as the nature of service provided are of Goods Transport Agency service. The Bench consisting of Ramesh Nair, Judicial Member and Raju, Technical Member held that “The said documents clearly established that the nature of the service provided by the Appellant to M/s Consumer Marketing (India) Pvt. Ltd. are in the nature of Goods Transport Agency service. We noticed that in terms of Notification No. 30/2012 -ST dtd. 20.06.2012 on GTA service, service tax is to be paid by the recipient of services and the appellant does not become a person liable for payment of service tax in this case. Therefore, the demand of service tax is not sustainable on services provided by Appellant to M/s Consumer Marketing (India) Pvt. Ltd.”
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