ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 23 : Part 6 (Issue dated : 20-5-2013)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business income --Deemed income--Remission or cessation of trading liability--Assessee having projects eligible for deduction under section 80-IA(4) and other projects--Allocating income offered on account of cessation of liabilities in proportion to turnover of section 80-IA projects and other projects--Proper--Income-tax Act, 1961, ss. 41(1), 80-IA(4)-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
Infrastructure facility --Special deduction--Deduction available to “any enterprise†--Assessee itself not be industrial undertaking, but secure infrastructure project and get it developed through vendors--Assessee securing development project from Government agency and itself developing it--Entitled to deduction--That assessee accept tax to be deducted under section 194C--Does not mean it accepted itself to be contractor--Income-tax Act, 1961, s. 80-IA(4)-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
Non-resident --Determination of income--Mutual concern having transactions with non-members--Basis of allocation of costs or of revenue to different countries by head office not known--Contention that assessee was only recovering costs from its non-members and there was no profit element not open for verification--Neither income side nor expenditure side of assessee’s income and expenditure account fully capable of verification--Accounts not divulging correct income--Estimation of income of assessee at 5 per cent. of gross receipts from non-members--Proper--Income-tax Rules, 1962, r. 10-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
Principle of mutuality --Entity having transactions with members and non-members--Not to be ipso facto denied benefit of principle--Entitled to benefit of principle in respect of transactions with members--Taxable with respect to transactions with non-members-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
Reassessment --Conditions precedent--Material forming basis of belief that income escaping assessment--Assessment cannot be reopened to find material--Assessee enjoying exemption as mutual concern--Survey showing assessee had transactions with non-members--Prima facie belief that income of assessee chargeable to tax had escaped assessment--Notice valid--Income-tax Act, 1961, ss. 147, 148-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
Search and seizure --Assessment in search cases--Assessing Officer bound to issue notice--Jurisdiction to issue notice not affected by fact that no indiscriminating material found--Abatement of pending proceedings--Assessments which have become final--Addition restricted to incriminating material found in search--Where no incriminating material found and no proceedings pending, assessment to be at income originally assessed--Income-tax Act, 1961, s. 153A-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 41(1) --Business income--Deemed income--Remission or cessation of trading liability--Assessee having projects eligible for deduction under section 80-IA(4) and other projects--Allocating income offered on account of cessation of liabilities in proportion to turnover of section 80-IA projects and other projects--Proper-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
S. 80-IA(4) --Business income--Deemed income--Remission or cessation of trading liability--Assessee having projects eligible for deduction under section 80-IA(4) and other projects--Allocating income offered on account of cessation of liabilities in proportion to turnover of section 80-IA projects and other projects--Proper-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
----Infrastructure facility--Special deduction--Deduction available to “any enterprise†--Assessee itself not be industrial undertaking, but secure infrastructure project and get it developed through vendors--Assessee securing development project from Government agency and itself developing it--Entitled to deduction--That assessee accept tax to be deducted under section 194C--Does not mean it accepted itself to be contractor-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
S. 147 --Reassessment--Conditions precedent--Material forming basis of belief that income escaping assessment--Assessment cannot be reopened to find material--Assessee enjoying exemption as mutual concern--Survey showing assessee had transactions with non-members--Prima facie belief that income of assessee chargeable to tax had escaped assessment--Notice valid-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
S. 148 --Reassessment--Conditions precedent--Material forming basis of belief that income escaping assessment--Assessment cannot be reopened to find material--Assessee enjoying exemption as mutual concern--Survey showing assessee had transactions with non-members--Prima facie belief that income of assessee chargeable to tax had escaped assessment--Notice valid-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
S. 153A --Search and seizure--Assessment in search cases--Assessing Officer bound to issue notice--Jurisdiction to issue notice not affected by fact that no indiscriminating material found--Abatement of pending proceedings--Assessments which have become final--Addition restricted to incriminating material found in search--Where no incriminating material found and no proceedings pending, assessment to be at income originally assessed-- Assistant CIT v. Pratibha Industries Ltd. (Mumbai) . . . 766
R. 10 --Non-resident--Determination of income--Mutual concern having transactions with non-members--Basis of allocation of costs or of revenue to different countries by head office not known--Contention that assessee was only recovering costs from its non-members and there was no profit element not open for verification--Neither income side nor expenditure side of assessee’s income and expenditure account fully capable of verification--Accounts not divulging correct income--Estimation of income of assessee at 5 per cent. of gross receipts from non-members--Proper-- Deputy Director of Income-tax (International Taxation) v. Societe International De Telecommunication (Mumbai) . . . 714
VAT AND SERVICE TAX CASES (VST)
VOLUME 60 : PART 3 : ISSUE DATED 17-5-2013
SUBJECT INDEX TO CASES REPORTED
Account books--Sales tax--Best judgment assessment--Books of accounts--Rejection--Addition--Finding of undisclosed sales in account books for one month--Rejection of books of accounts and addition at specified rate for entire financial year--Valid--Haryana General Sales Tax Act (20 of 1973).--Rathi Udyog Ltd. v. State of Haryana (P&H) P. 270
Appeal--Sales tax--Tax Board--Powers--Wide--Dealer seeking adjustment of tax and set-off on basis of tax paid on diesel purchased as raw material--Remand of question of dealer's claim to set-off for consideration by appellate authority--Within jurisdiction--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 85--Commercial Taxes Officer, Circle B, Bharatpur v. Pratap Oil Industries (Raj) P. 317
--Writs under Constitution--Writ jurisdiction of court cannot be invoked after appeal filed against same orders by Tribunal withdrawn--Constitution of India, art. 226--Eco Auto Components Ltd. v. State of Haryana (P&H) P. 350
--See also Recovery of tax (Ker) P. 319, Revision (P&H) P. 347
Assessment--See Revision (P&H) P. 347, Writs under Constitution (Mad) P. 299
Best judgment assessment--Sales tax--Books of accounts--Rejection--Addition--Finding of undisclosed sales in account books for one month--Rejection of books of accounts and addition at specified rate for entire financial year--Valid--Haryana General Sales Tax Act (20 of 1973).--Rathi Udyog Ltd. v. State of Haryana (P&H) P. 270
Branch transfers--See Central sales tax (Mad) P. 336
Business--See Dealer (Mad) P. 352
Central sales tax--Sales tax--Branch transfers--Manufacturers of lifts--Parts and accessories manufactured in State and transferred to branches outside State--Clarification by Commissioner that transfer not to be taxed as inter-State sale if dealer produced form F from branch in other State--Writ petitions against notice disallowing exemption--Direction to dealer to file objections before authority and to authority to consider objections--Central Sales Tax Act (74 of 1956), s. 6A--Tamil Nadu General Sales Tax Act (1 of 1959), s. 13(2)--Central Sales Tax (Registration and Turnover) Rules, 1957, r. 12(7)--Kone Elevator India Pvt. Ltd. v. Commercial Tax Officer, Mandaveli Assessment Circle, Chennai (Mad) P. 336
Check-post--Sales tax--Penalty--Natural justice--Dealer appearing before check-post on date before date set for hearing and seeking to produce declaration form--Check-post officer passing order on same day without granting opportunity to produce form--Violation of principle of natural justice--Order set aside--Matter remanded for decision afresh after giving opportunity to produce declaration forms.--New Golden Transport Company v. Additional Commissioner of Commercial Tax, Indore (MP) P. 327
--See also Penalty (Raj) P. 292, 296, 322
Commercial tax authorities--Writs under Constitution--Value added tax--Input-tax credit--Notice of withdrawal on ground of cancellation of registration of selling dealer with retrospective effect--Validity of notice--Notice issued by officer authorised by Commissioner to make assessment--Valid--Dealer to file objections before authority--Court will not interfere--Tamil Nadu Value Added Tax Act (32 of 2006), s. 2(5)--Constitution of India, art. 226--Titanium Tantalum Products Limited v. Commercial Tax Officer, Group-VI/Enforcement (South), Chennai (Mad) P. 299
Commissioner--See Writs under Constitution (Mad) P. 299
Court--See Writs under Constitution (Mad) P. 283, (P&H) P. 350
Dealer--Sales tax--Business--Empty beer and brandy bottles purchased from small merchants transported to other States for sale to agent for recycling--Writ petition contending action of respondents in restraining dealer from transporting on ground bottles, designed by certain distilleries and that design registered under Designs Act illegal--Claim not substantiated--Petition lacked merit--Dismissed--Constitution of India, art. 226--Designs Act (16 of 2000)--Tamil Nadu General Sales Tax Act (1 of 1959)--Sree Vishnu Bottles v. State of Tamil Nadu (Mad) P. 352
Declaration form--See Central sales tax (Mad) P. 336, Natural justice (MP) P. 327, Penalty (All) 355, (Raj) P. 292, 296, 322
Deduction of tax at source--See Works contract (Tripura) P. 360
Entries in Schedule--Sales tax--"All kinds of generating sets"--Wide enough to cover alternating current generator sets--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 4--Notification No. F.4(12)/FD/Tax-Div./2001-12 dated March 29, 2001, entry 41--Commercial Taxes Officer, Baran v. Ganesh Lal Goyal & Sons (Raj) P. 295
Evasion of tax--Sales tax--Penalty--Check-post--All other documents found in course of checking of vehicle--Goods in transit duly tax-paid--Declaration form ST-18C filed with reply to notice--No mens rea of dealer to evade tax--Mere unavailability of form ST-18C in first instance--Not ground for levy of penalty--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 78(5)--Assistant Commercial Tax Officer, Alwar v. Narendra Kumar and Company (Raj) P. 296
--Value added tax--Penalty--Check-post--Goods accompanied by all documents except form VAT-47--Form VAT-47 produced in response to notice--Documents not found to be forged or unauthentic--No intent to evade tax--Levy of penalty illegal--Rajasthan Value Added Tax Act (4 of 2003), s. 76(6).--Assistant Commercial Taxes Officer, Ward-I, Circle-A, Bhiwadi v. Insecticides (India) Limited (Raj) P. 322
--Value added tax--Penalty--Check-post--Goods accompanied by all documents except form VAT-49--Form VAT-49 produced in response to notice--That goods not meant for sale but for demonstration recorded in certificate accompanying goods--No intent to evade tax--Levy of penalty illegal--Rajasthan Value Added Tax Act (4 of 2003), s. 76(6)--Assistant Commercial Taxes Officer, Flying Squad, Ajmer, Rajasthan v. Dozco (India) Pvt. Ltd. (Raj) P. 292
Exemption--Value added tax--Seizure--Import of goods into State--Seizure of goods not accompanied by import declaration on ground goods not agarbatti as claimed and not exempt--Finding not based on enquiry or chemical test of seized material--Seizure not justified--U. P. Value Added Tax Act (5 of 2008), ss. 7(b), 50 ; Sch. I, entry 41--Banglore Agarbatti House v. Commissioner, Commercial Tax, U. P., Lucknow (All) P. 355
High Court--Revision--Sales tax--Estimate of turnover solely based on electricity consumption--Set aside on ground consumption could be for supply of water for agricultural or drinking purposes--Disallowance of commission on local sales--Appellate authority on verifying facts relating to opening stock and dispatch reversing order of assessing officer--Findings of fact--Court will not interfere in revision--State of Tamil Nadu v. V. S. S. and Company (Mad) P. 289
--See also Writs under Constitution (Mad) P. 299
Input tax--Value added tax--Refund--Processing of goods from materials supplied to dealer by customers on job-work basis--Consumables used in course of processing of goods--Amount payable to dealer towards work rendered by it included cost of consumables--Dealer not entitled to refund of tax paid on purchase of consumables--Karnataka Value Added Tax Act, 2003 (32 of 2004)--Jay Enterprises v. Additional Commissioner of Commercial Taxes, Zone I, Gandhinagar, Bangalore (Karn) P. 313
Input-tax credit--See Registered dealer (Mad) P. 283, Writs under Constitution (Mad) P. 299
Inter-State sale--See Central sales tax (Mad) P. 336
Jurisdiction--See Appeal (Raj) P. 317
Natural justice--Sales tax--Check-post--Penalty--Dealer appearing before check-post on date before date set for hearing and seeking to produce declaration form--Check-post officer passing order on same day without granting opportunity to produce form--Violation of principle of natural justice--Order set aside--Matter remanded for decision afresh after giving opportunity to produce declaration forms.--New Golden Transport Company v. Additional Commissioner of Commercial Tax, Indore (MP) P. 327
--See also Rate of tax (Mad) P. 315
Notice--See Writs under Constitution (Mad) P. 299
Penalty--Sales tax--Evasion of tax--Check-post--All other documents found in course of checking of vehicle--Goods in transit duly tax-paid--Declaration form ST-18C filed with reply to notice--No mens rea of dealer to evade tax--Mere unavailability of form ST-18C in first instance--Not ground for levy of penalty--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 78(5)--Assistant Commercial Tax Officer, Alwar v. Narendra Kumar and Company (Raj) P. 296
--Value added tax--Evasion of tax--Check-post--Goods accompanied by all documents except form VAT-47--Form VAT-47 produced in response to notice--Documents not found to be forged or unauthentic--No intent to evade tax--Levy of penalty illegal--Rajasthan Value Added Tax Act (4 of 2003), s. 76(6).--Assistant Commercial Taxes Officer, Ward-I, Circle-A, Bhiwadi v. Insecticides (India) Limited (Raj) P. 322
--Value added tax--Evasion of tax--Check-post--Goods accompanied by all documents except form VAT-49--Form VAT-49 produced in response to notice--That goods not meant for sale but for demonstration recorded in certificate accompanying goods--No intent to evade tax--Levy of penalty illegal--Rajasthan Value Added Tax Act (4 of 2003), s. 76(6)--Assistant Commercial Taxes Officer, Flying Squad, Ajmer, Rajasthan v. Dozco (India) Pvt. Ltd. (Raj) P. 292
--See also Natural justice (MP) P. 327, Recovery of tax (Ker) P. 319, Service tax (CESTAT-Ahd) P. 342
Purchase tax credit--Value added tax--Dealer procuring rice bran for manufacture of rice bran oil--De-oiled cake produced as by-product exempt--Dealer not disentitled to purchase tax credit--Uttarakhand Value Added Tax Act (27 of 2005)--Commissioner, Commercial Tax, Uttarakhand, Dehradun v. Eastman Agro Mills Ltd. (Uttara) P. 325
--Value added tax--Dealer purchasing rice bran inside and outside State for manufacture of rice bran oil--Entitled to credit in relation to goods purchased within State only--Not required to keep manufacture as well as product manufactured from rice bran procured from outside State separate--Uttarakhand Value Added Tax Act (27 of 2005)--Commissioner, Commercial Tax, Uttarakhand, Dehradun v. Eastman Agro Mills Ltd. (Uttara) P. 325
Rate of tax--Value added tax--Clarification--Order passed without giving opportunity of personal hearing to dealer--Not proper--Matter remanded--Tamil Nadu Value Added Tax Act (32 of 2006), Sch. I, Part C, entry 69--Tamil Nadu Value Added Tax Rules, 2007, r. 12A.--Vanjax Sales Private Ltd. v. Authority for Clarification & Advance Ruling, Chennai (Mad) P. 315
Recovery of tax--Penalties set aside with observation that suppression of turnover arrived at without verification of records and without giving dealer opportunity to be heard--Appeals against assessment pending--Proceedings for recovery--Writ petition--Direction for disposal of appeals and stay of recovery till completion of proceedings.--ST. Mary's Hotels (P.) Ltd. v. Commercial Tax Officer (Works Contract and Luxury Tax), Kottayam (Ker) P. 319
Refund--Value added tax--Input tax--Processing of goods from materials supplied to dealer by customers on job-work basis--Consumables used in course of processing of goods--Amount payable to dealer towards work rendered by it included cost of consumables--Dealer not entitled to refund of tax paid on purchase of consumables--Karnataka Value Added Tax Act, 2003 (32 of 2004)--Jay Enterprises v. Additional Commissioner of Commercial Taxes, Zone I, Gandhinagar, Bangalore (Karn) P. 313
Registered dealer--Value added tax--Input-tax credit--Condition precedent--Payment of tax due on purchase in manner prescribed--Dealer establishing payment of tax at time of purchase and self-assessment accepted--No power in authority to revoke input-tax credit on ground selling dealer has not paid tax--Tamil Nadu Value Added Tax Act (32 of 2006), ss. 19(1), (16), 22(2)--Tamil Nadu Value Added Tax Rules, 2007, r. 10(2)--Sri Vinayaga Agencies v. Assistant Commissioner (CT), Vadapalani-I Assessment Circle, Chennai (Mad) P. 283
Remand--See Revision (P&H) P. 347
Revision--Sales tax--High Court--Estimate of turnover solely based on electricity consumption--Set aside on ground consumption could be for supply of water for agricultural or drinking purposes--Disallowance of commission on local sales--Appellate authority on verifying facts relating to opening stock and dispatch reversing order of assessing officer--Findings of fact--Court will not interfere in revision--State of Tamil Nadu v. V. S. S. and Company (Mad) P. 289
--Value added tax--Appeal--Remand--Assessment--Appeal against assessment order--Allowed by Joint Excise and Taxation Commissioner (Appeals) on finding that denial of deduction on petroleum products not sustainable and matter remanded to assessing authority--Subsequent order by Assessing Officer allowing refund of deduction--An independent order--Invocation of revisional jurisdiction by Deputy Excise and Taxation Commissioner not barred for reason that appeal decided by a senior officer--Haryana Value Added Tax Act (6 of 2003), s. 34--State of Haryana v. New India Constructions Co. (P&H) P. 347
Sales tax authorities--See Registered dealer (Mad) P. 283, Writs under Constitution (Mad) P. 283
Seizure--Value added tax--Exemption--Import of goods into State--Seizure of goods not accompanied by import declaration on ground goods not agarbatti as claimed and not exempt--Finding not based on enquiry or chemical test of seized material--Seizure not justified--U. P. Value Added Tax Act (5 of 2008), ss. 7(b), 50 ; Sch. I, entry 41--Banglore Agarbatti House v. Commissioner, Commercial Tax, U. P., Lucknow (All) P. 355
Set-off--See Appeal (Raj) P. 317
Tax board--See Appeal (Raj) P. 317
Tribunal--See Writs under Constitution (P&H) P. 350
Value added tax--See Penalty (Raj) P. 292, 322, Purchase tax credit (Uttara) P. 325, Rate of tax (Mad) P. 315, Registered dealer (Mad) P. 283, Revision (P&H) P. 347, Seizure (All) P. 355, Works contract (Tripura) P. 360, Writs under Constitution (Mad) P. 299
Works contract--Value added Tax--Deduction of tax at source--Writs under Constitution--On facts interim order dated March 22, 2013 in petition filed by assessee modified and direction suspending memorandum dated June 25/30, 2005, and notifications dated September 21, 2011, November 16, 2011 and August 1, 2012, vacated--Tripura Value Added Tax Act, 2004 (1 of 2005)--Tripura Value Added Tax Rules, 2005--Constitution of India, art. 226.--State of Tripura v. Shekhar Chandra Podder (Tripura) P. 360
Writs under Constitution--Alternative remedy--Gross error on part of authority--Court entitled to correct--Constitution of India, art. 226--Sri Vinayaga Agencies v. Assistant Commissioner (CT), Vadapalani-I Assessment Circle, Chennai (Mad) P. 283
--Appeal--Writ jurisdiction of court cannot be invoked after appeal filed against same orders by Tribunal withdrawn--Constitution of India, art. 226--Eco Auto Components Ltd. v. State of Haryana (P&H) P. 350
--Value added tax--Commercial tax authorities--Input-tax credit--Notice of withdrawal on ground of cancellation of registration of selling dealer with retrospective effect--Validity of notice--Notice issued by officer authorised by Commissioner to make assessment--Valid--Dealer to file objections before authority--Court will not interfere--Tamil Nadu Value Added Tax Act (32 of 2006), s. 2(5)--Constitution of India, art. 226--Titanium Tantalum Products Limited v. Commercial Tax Officer, Group-VI/Enforcement (South), Chennai (Mad) P. 299
--See also Dealer (Mad) P. 352, Works contract (Tripura) P. 360
Check-post--See Evasion of tax (WBTT) P. 274
Evasion of tax--Value added tax--Check-post--Seizure--Penalty--Consignment of 16 MT ferro silicon in two vehicles each containing 8 MT along with one consolidated invoice and consignment note from Sikkim to Siliguri for further transportation to Durgapur after unloading and reloading in single vehicle--One vehicle intercepted by Sales Tax Officer before reaching Siliguri, detained, goods seized instantly for non-production of way-bill and/or endorsed way-bill in form 50 and penalty imposed on same day--Way-bill in form 50 and other documents produced same day but not with other vehicle plying behind driver whereof claimed to be in possession of way-bill and other documents--Provision providing for 48 hours time to produce way-bill in form 50 not applicable as interception and demand not at entry check-post which was not functioning--Seizure and levy of penalty valid as there was contravention of provisions--On facts no probability of evasion of tax--Quantum of penalty reduced--West Bengal Value Added Tax Act (37 of 2003), ss. 73, 74, 76--West Bengal Value Added Tax Rules, 2005, r. 103--Akshay Ispat & Ferro Alloys Pvt. Ltd. v. STO, Siliguri Range (WBTT) P. 274
Exemption--New industrial unit--Gross value of fixed capital investment--Enhancement--Permitted taking project report of dealer into account--Additional investment in machinery for additional production--Not to be restricted with retrospective effect--West Bengal Sales Tax Act (49 of 1994), ss. 41, 43A--West Bengal Value Added Tax Act (37 of 2003).--Chandanpur Tea Co. Pvt. Ltd. v. Assistant Commissioner of Commercial Taxes, Special Cell (WBTT) P. 304
--Sales tax--Small-scale industrial unit--Provisional certificate granted with validity of five years--Production commenced in unit after five years of grant of provisional registration--Dealer not registered as small-scale industry on or before commencement of West Bengal Sales Tax (Second Amendment) Ordinance, 1999--Dealer not entitled to claim certificate of eligibility for purpose of remission of tax--West Bengal Sales Tax Act (49 of 1994), ss. 41, 43A--Nanda Forgings (P) Ltd. v. ACCT, Special Cell, Kolkata (WBTT) P. 329
New industrial unit--See Exemption (WBTT) P. 304
Penalty--See Evasion of tax (WBTT) P. 274
Seizure--See Evasion of tax (WBTT) P. 274
Small-scale industrial unit--See Exemption (WBTT) P. 329
Value added tax--See Evasion of tax (WBTT) P. 274
CUSTOMS, EXCISE AND SERVICE TAX
Cenvat credit--Service tax--Input service--Input-service distributor--Unit receiving invoices from input-service distributor--Conditions to be fulfilled for availing of credit--Cenvat Credit Rules, 2004, rr. 2(m), 4A, 7.--Castrol India Limited v. Commissioner of Central Excise, Vapi (CESTAT-Ahd) P. 257
--Service tax--Input--Input service--Manufacturer of sponge iron procuring iron ores, for use as input, paying tax on goods transport agency service in bringing them and availing of Cenvat credit--Iron ore fines generated after screening of iron ores during manufacture of sponge iron sold in market--Iron ore not input after subjected to process of screening--No provision to reverse credit availed of on input services--Department cannot reverse proportionate Cenvat credit availed of on goods transport agency services on ground entire quantity of iron ores not utilized in manufacture of final products--Cenvat Credit Rules, 2004, rr. 2(l), 3(1), (5)--Seven Star Steels Ltd. v. Commissioner of Central Excise, Customs and Service Tax, BBSR II (CESTAT-Kolkata) P. 264
--Service tax--Penalty--Assessee engaged in providing taxable service writing off certain amount as bad debts from books of accounts for which input services were utilized--No provision in Cenvat Credit Rules to recover credit where service tax recovery pending and written-off later as bad debts--No one-to-one connection in availing of and utilization of credit in taxable output services--Proportional credit on amount of bad debts written-off by assessee not liable to be reversed--Penalty not attracted as credit availment and utilization not wrong--Service Tax Rules, 1994, r. 6(10)--Cenvat Credit Rules, 2004, r. 14--CST, Ahmedabad v. Krishna Communication (CESTAT-Ahd) P. 342
--See also Service tax (CESTAT-Ahd) P. 257
Goods transport agency service--See Service tax (CESTAT-Kolkata) P. 264
Input--See Service tax (CESTAT-Kolkata) P. 264
Input service--See Service tax (CESTAT-Ahd) P. 257, (CESTAT-Kolkata) P. 264
Interest--See Service tax (CESTAT-Ahd) P. 257
Manufacturer--See Service tax (CESTAT-Ahd) P. 257
Penalty--See Service tax (CESTAT-Ahd) P. 257
Service tax--Cenvat credit--Input--Input service--Manufacturer of sponge iron procuring iron ores, for use as input, paying tax on goods transport agency service in bringing them and availing of Cenvat credit--Iron ore fines generated after screening of iron ores during manufacture of sponge iron sold in market--Iron ore not input after subjected to process of screening--No provision to reverse credit availed of on input services--Department cannot reverse proportionate Cenvat credit availed of on goods transport agency services on ground entire quantity of iron ores not utilized in manufacture of final products--Cenvat Credit Rules, 2004, rr. 2(l), 3(1), (5)--Seven Star Steels Ltd. v. Commissioner of Central Excise, Customs and Service Tax, BBSR II (CESTAT-Kolkata) P. 264
--Cenvat credit--Input service--Input-service distributor--Unit receiving invoices from input-service distributor--Conditions to be fulfilled for availing of credit--Cenvat Credit Rules, 2004, rr. 2(m), 4A, 7.--Castrol India Limited v. Commissioner of Central Excise, Vapi (CESTAT-Ahd) P. 257
--Cenvat credit--Input services--Definition--Manufacturer--Services in respect of which Cenvat credit admissible--On facts order demanding credit amount, interest and penalty set aside--Finance Act (32 of 1994)--Cenvat Credit Rules, 2004, r. 2(l).--Castrol India Limited v. Commissioner of Central Excise, Vapi (CESTAT-Ahd) P. 257
--Cenvat credit--Penalty--Assessee engaged in providing taxable service writing off certain amount as bad debts from books of accounts for which input services were utilized--No provision in Cenvat Credit Rules to recover credit where service tax recovery pending and written-off later as bad debts--No one-to-one connection in availing of and utilization of credit in taxable output services--Proportional credit on amount of bad debts written-off by assessee not liable to be reversed--Penalty not attracted as credit availment and utilization not wrong--Service Tax Rules, 1994, r. 6(10)--Cenvat Credit Rules, 2004, r. 14--CST, Ahmedabad v. Krishna Communication (CESTAT-Ahd) P. 342
Words and phrases--Input services--Definition (CESTAT-Ahd) P. 257
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