Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... by the division bench of the tribunal as follows:- moreover, section 37(2) of the central excise act, 1944, allows the central government, inter alia to make rules for the following:- xvi(a) provide 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; xvi(aa) 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 ..... similar powers are available under section 94 of the finance act, 1994 to make rules to provide for credit in respect of goods and services used for providing taxable service. ..... these debit notes show that service tax and education cess have been debited for the commission paid by the appellants to their consignment agents. ..... cce, ahmedabad - 2009 (16) str 94 under which it has been held that the debit notes issued by the service provider contained details of service tax payable, description of taxable service, value of taxable service and registration number of service provider and name and address of service provider which are the details required as per rule 9(2) of cenvat credit rules, 2004. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... 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 01.03.1997. 6. ..... the honble 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 be sustained. ..... adjudicating authority confirmed 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 the erstwhile rules. ..... a show-cause 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 effect on and .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... 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. ..... 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 ..... 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. ..... of bombay high court was that rule 2(1) (d) (iv) of service tax rules, 1994 was ultravires the provisions of finance act, 1994. ..... penalties under section 76 and 78 of finance act 1994 were ..... when the matter was pointed out to the assessee-appellant, they paid service tax along with interest for the period 16-06-05 to sept 06 totaling to tax amount of rs.5,74,831/- and interest ..... secondly, the issue regarding tax liability on recipient of service got settled only by the decision of the bombay high court and ..... of the view that on such service received from persons located abroad, assessee-appellant should have paid service tax as per the provisions of rule 2(1) (d) (iv) of service tax rules, 1994. ..... on such service of agents received and commission paid, appellant was not paying service tax during the period nov 04 to ..... 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. 2. ..... 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. 4 ..... , 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 the ..... 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 been ..... is no need in this case for imposition of a separate penalty under section 78 of the finance act, 1994. ..... shri m.n.bharathi, learned advocate appearing for the appellants states that the service tax amount has since been paid by the appellants partly before issue of the show-cause notice and partly before conclusion of the adjudication ..... also take note of the fact that the subsequent amendment to the act has made the penalties under section 76 and 78 mutually exclusive. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... , 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. ..... 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 ..... 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. ..... 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. ..... for reasons recorded below, i waived predeposit of penalty imposed upon the assessees (entire service tax demand has been paid together with interest) and proceeded to decide the appeal itself at this stage with the consent of both sides, as the issue lies within a narrow compass. ..... 27.9.2010 is reproduced herein below:- sub : service tax - passing of order in original dated 28.11.2008 - clarification - ..... 2.0 we have paid the entire service tax amount of rs.55,832/- along with interest of rs.7, ..... (ii) the provisions of section 76 and 78 are mutually exclusive only from 10.05.2008 onwards and not for the earlier .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... section 94 (2) of the finance act, 1994, refers to credit of service tax paid on the services consumed for providing a taxable service whereas the definition of input service in the cenvat credit rules, 2004, uses the expression any service used by a provider of taxable service for providing an output service ..... section 94 of the finance act, 1994, the expression used is services consumed for providing a taxable service, under rule 2 (l) the expression used is any service used by a provider of taxable service and under rule 5 thereof, the expression used is input service used in providing output service ..... section 94 of the finance act, 1994 allows the central government to make rules to provide, interalia, for the following:- (ee) the credit of service tax paid on the services consumed for providing a taxable service in case where the services consumed and the service provided fall in the same category of taxable service ..... 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 ..... in the finance act, 1994, speaks of services consumed for providing a taxable service and the expressions used in the cenvat credit rules, 2004 and in .....
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). ..... 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, 2004. ..... 1.3.2008, gta service was excluded from the definition of "output service" under rule 2(p) of the cenvat credit rules, 2004 and therefore, they are eligible to utilize cenvat credit for payment of service tax on gta service prior to 1.3.2008. ..... the learned advocate on behalf of the assessee submits that the commissioner (appeals) erroneously proceeded on the basis that the explanation to rule 2(p) of service tax rules 2004 was deleted vide notification no.8/2006-ce (nt) dt. ..... )] has held that the assessee, a manufacturing unit paying service tax on goods transport services, fall within the definition of provider of taxable service under rule 2(r) of cenvat credit rules, 2004 which includes a person liable for paying service tax. ..... revenue in their grounds of appeal stated that tribunal has taken a wrong decision based on the explanation given to rule 2(p) of the rules 2004 and they have filed appeal against the decision of india cements ltd. .....
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. ..... as a rejoinder, the consultant for the appellant submits that the dates of 16-09-08 and 3-10-08 were the dates on which the contract amounts were realized including service tax and the service tax amount was collected only on 1.10.2009 and the same was remitted on 5.10.2009 and there was no delay in remitting tax. ..... on audit of the books of accounts of the appellant in aug 09, the departmental officers pointed out that such activities would attract service tax and an amount of rs.11,74,726/- was due from them. ..... thereupon, the appellant collected the service tax amount from the customers to whom they rendered services and paid the service tax. ..... they were not collecting service tax on such activity and remitting to government during the said period. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... 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. ..... 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. ..... 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. ..... set aside the penalty imposed under section 78 of the finance act, 1994. ..... 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 refunded, due to fraud or collusion or wilful mis-statement or suppression of facts or contravention with intent to evade payment of service tax and review show-cause notice issued by the ..... although the notice states that the assessees got registered, filed returns and paid service tax only after detection by the department by the department, this averment is not enough to hold that the notice has alleged fraud or suppression of .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai
..... the revenue is aggrieved by the setting aside of penalties imposed on the assessees herein under the provisions of sections 76 and 78 of the finance act, 1994, on the ground that the assessees had established reasonable cause for failure to pay the service tax leviable within time, and extended the protection under section 80. 2. ..... section 80 of the finance act provides that notwithstanding anything contained in the provisions of sections 76, 77 and 78, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure. ..... in these circumstances it cannot be held that the assessees were guilty of suppression with intention to evade payment of tax so as to make them liable to penalty under sections 76 and 78 of the finance act, 1944. ..... the commissioner (appeals) has therefore rightly extended the protection under section 80 of the finance act. ..... i am also informed that the hon ble madras high court has granted interim stay against the levy of service tax, as prayed for by the association in its petition before the high court. ..... issue of levy of tax arose and that there was a confusion in the mind of the assessee since southern region petroleum corporation contractors welfare association was taking steps to move the high court regarding levy of service tax. .....
Tag this Judgment!