Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... the learned ar submits that by section 82 of the finance act, 2005, there is retrospective amendment for rule 57cc insofar as if the manufacturer fails to pay the amount, it shall be recovered along with interest in the same manner, as provided in rule 57i of the central excise rules, 1944, for recovery of credit wrongly ..... in my considered view, the matter is required to be examined by the adjudicating authority afresh as per the amendment of the rules. ..... thereafter, there is an amendment of the rules. ..... the commissioner (appeals) set aside the adjudication order and allowed the appeals filed by the respondent on the ground that there is no machinery provision in the act or rules for its recovery. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... for the period prior to 1.4.08, the assessees are covered by provisions of retrospectively amended section 73 (1) of the finance act, 2010 which provides that pending reversal of credit may be made as per the formula prescribed under rule 6 (3a) along with interest @ 24% per annum. ..... they are, therefore, covered by the amendment made to the finance act in 2010 for the period upto 31.3.08 and therefore the demand for the period upto 31.3.08 is set aside as not sustainable. ..... since the assessees had neither maintained separate accounts in respect of input service used for dutiable or exempted products nor paid an amount equal to 10% of the value of exempted goods cleared for the period from 2005-06 to 2007-08 (upto feb-08) valued at rs.22,68,47,342/- (as per relevant rule) and the duty liability worked out to rs.2,26,84,734/-, show-cause notices were issued raising duty demands, invoking extended period of limitation on the ground of suppression; ..... per jyoti balasundaram the assessees herein, who are manufacturers of pharma products falling under chapter 30 of the first schedule to the central excise act, 1985, manufacture both dutiable goods as well as exempted goods in terms of notification no.4/06 dt. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... a retrospective amendment of notification no.14/97-ce(nt), dated 03.05.1997 by section 87 of the finance act, 1997. ..... in effect, the limit of 10% ad valorem under section 87 of the finance act, 1997 would not apply in respect of credit availed under rule 57b of the rules as substituted vide notification no.6/97-ce(nt), dated 01.03. ..... high court held that section 87 of the finance act and notification no.14/97-ce(nt) (supra) are subject to the limitation provided under section 11a of the central excise act, 1944. ..... further, as per sub-section (2) of section 87 of the finance act, 1997 the present proceedings cannot ..... the demand of rs.7,60,566/- along with interest being excess credit availed for the period 23.07.1996 to 03.05.1997 under section 87 of the finance act, 1997 and rule 57i of the erstwhile central excise rules, 1944 read with section 11a of the central excise act. ..... he further submits that section 87 of the finance act, 1997 is in respect of a notification dated 03.05.1997 issued under rule 57a of ..... notice dated 01.11.1997 was issued to the assessee proposing to demand of an amount of rs.7,60,566/- along with interest as per notification no.14/97-ce(nt), dated 03.05.1997 and section 87 of finance act, 1997. ..... as per section 87 of the finance act, 1997, the restriction of credit of duties paid on the specified petroleum products as per notification, dated 03.05.1997, used as inputs in the manufacture of final products shall be deemed to prevail over all the notification with .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... as far as revenue's appeal is concerned the dispute is now well settled that prior to introduction of section 66a in finance act, 1994, no demand for service tax from recipient of service under reverse charge mechanism as per rule 2 (1) (d) (iv) could be sustained. ..... 235 (bom) and held that service tax demand for the period prior to 18-04-06 when section 66a was introduced in finance act, 1994 is not sustainable. ..... further penalties under section 76 and 78 of finance act 1994 were imposed. ..... subsequently, a show cause notice was issued on 09-05-08 for demanding service tax and interest and also for imposing penalties under various sections of the finance act, 1994. ..... the finding of bombay high court was that rule 2(1) (d) (iv) of service tax rules, 1994 was ultravires the provisions of finance act, 1994. ..... further a penalty of rs.1000/- was imposed under section 77. ..... in the adjudication order, the demand of rs.7,78,559/- was confirmed against the appellant along with interest under section 75. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... he also prays that in case penalty is held to be imposable, there is no case for imposition of penalty under section 76 as well as under section 78 of the finance act, 1994 as the appellants had not paid the tax merely on the ground that the customers had not paid the tax to them and there was no suppression of the value of the taxable service ..... accordingly, penalty imposed on the appellants under section 78 of the finance act, 1994 is set aside and the appellants are directed to pay the interest amount on the delayed payment of the tax forthwith as undertaken by ld.advocate ..... i am of the view that, in the facts and circumstances of the case, imposition of penalty under section 76 of the finance act, 1994 meets the ends of justice. ..... under the circumstances, the provisions of section 73 (3) of the finance act, 1994 cannot be applied to the facts of ..... he states that provisions of section 73 (3) of the finance act, 1994 should have been applied in the case of the appellants and no penalty should have ..... no need in this case for imposition of a separate penalty under section 78 of the finance act, 1994. ..... take note of the fact that the subsequent amendment to the act has made the penalties under section 76 and 78 mutually exclusive. ..... that appellants had not paid the full amount of the tax and interest thereon before issue of show-cause notice and hence the benefit of section 73 (3) cannot be allowed in their case. ..... states that imposition of penalty under sections 76 and 78 is justified. 3 .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... further, as per the provisions of section 78 of the finance act, 1994, penalty under section 76 cannot be imposed, when penalty under section 78 has been imposed. ..... 2.0 in view of the above reasons, we humbly request that the adjudicating authority may kindly pass an appropriate order under the provisions of section 74 of the finance act, 1994 by rectifying the error. ..... 3) i find that as per section 74 of the finance act, 1994, an application for rectification can be filed within a period of two years from the date of which the order stated to have contained errors was passed. ..... under such circumstances, we are eligible to pay the penalty at the reduced rate of 25% of the penalty as per the provisions of section 78 of the finance act, 1994. ..... the issues raised by you in the cited letter have been examined with reference to the applicable provisions of finance act, 1994 and the following clarification are issued. ..... (ii) the provisions of section 76 and 78 are mutually exclusive only from 10.05.2008 onwards and not for the earlier period. ..... but, in our case penalty has been imposed under both the sections against the statutory provision of section 78. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to the manufacture of excisable goods, (xviaa) provide for credit of service tax leviable under chapter v of the finance act, 1994 (32 of 1994) paid or payable on taxable services used in, or in relation to, the manufacture of excisable goods, (xxviii) provide for the lapsing of credit of duty lying unutilized with the manufacturer of specified excisable ..... cenvat credit rules, 2004, which have been framed invoking the statutory rule making powers conferred under section 37 of the central excise act, 1944 and section 94 of the finance act, 1994. ..... any power under section 94 of the finance act, 1994, for ..... central government in exercise of the powers conferred by section 37 of the central excise act, 1944 and section 94 of the finance act, 1994. ..... and provision of subsidized canteen forms part of cost of production as evident from para 4.1 of cas-4 - mandatory on part of factories to provide canteen facility and failure attracts prosecution and penalty under section 92 of factories act, 1948 - service tax on outdoor catering service paid by manufacturer whether subsidised food provided or not - cost of food forms part of expenditure incurred having bearing on cost of production - outdoor caterer ..... the board s circular dated 19.01.10 cited before us does not have the effect of amending the statute and cannot be seen as authorizing sanction of refund if the credit of service tax ..... 2005 ..... 2005 ..... 2005 .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... output servicemeans any taxable service, excluding the taxable service referred to in sub-clause (zzp) of clause (105) of section 65 of the finance act, provided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly;" d) ..... the adjudicating authority confirmed the demand of service tax of rs.10,27,257/- along with interest under section 73 (1) of the finance act, 1994 and disallowed the cenvat credit of rs.10,27,257/- under rule 14 of the ccr 2007 utilized towards the payment of tax and imposed ..... 1.3.2008, sub-clause (zzzp) of clause (105) of section 65 of the finance act, 1994 was specifically excluded from the definition of "output service" under cenvat credit rules, ..... service tax on any output service" e).section 68 (2) of finance act, 1994 provides payment of service tax as under :- ..... was waived by invoking section 80 of the finance act, 1994. ..... the learned authorized representative on behalf of the revenue submits that the commissioner (appeals) erroneously set aside the demand prior to 19.4.2006 following the amendment of explanation to rule 2(p) of cenvat credit rules, 2004. ..... (supra) on the same issue for the period between 1.1.2005 and 30.9.2005 dismissed the appeal filed by revenue holding that cenvat credit can be used to pay service tax due on g.t.a service. 7 ..... (supra) which related to the period from april 2005 to march 2007. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... by the time of adjudication, section 97 was inserted in finance act, 1994 exempting service tax in respect of management, maintenance and repair service retrospectively from 16-05-2005, by finance act 2012. ..... at any rate, when the appellant did not owe any money to the government in view of the retrospective amount as per section 97 of finance act, 1994 the demand for interest cannot be sustained. 5. ..... the adjudicating authority ordered that the amount already paid by the appellant be credited to the consumer welfare fund in terms of section 73a(6) of the finance act, 1994. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... the challenge in the present appeal is only to the imposition of penalties under section 76, 77 and 78 of chapter v of the finance act, 1994 the demand of service tax together with interest stands paid and is not challenged. 2. ..... the appeal is thus partly allowed by setting aside the penalty under section 78, reducing the penalty under section 76 and upholding penalty under section 77 of the finance act, 1994. ..... as regards the penalty under section 76, i do not see force in the submission of the assessee that they had a reasonable cause for failure to register and file returns and pay tax, as the reason adduced by them is ignorance of law and interpretation of statutory provisions, which is not sufficient to extend the section 80 of the finance act, 1994. ..... i, therefore, set aside the penalty imposed under section 78 of the finance act, 1994. ..... i find force in the submission that penalty imposed under the provisions of section 78 is not sustainable for the reason that the penalty under the above mentioned provision can be imposed only if service tax has not been levied or paid or has been short-levied or short-paid or erroneously ..... however, in the absence of any grounds relied upon by the commissioner to impose the maximum penalty of rs.200/- per day under section 76, i reduce the penalty to rs.100/- per day, which is the minimum penalty under section 76. ..... penalty of rs.1,000/- under section 77 is upheld. 3. ..... i, therefore, uphold the penalty under section 76. .....
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