Alert No 20100423A : Friday, April 23, 2010
Latest Amendments and Recent News Views & Stories
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News Views & Stories:
Recipient of services of foreign agents is liable to pay Service Tax
This provision is effective after statutory changes since April 18, 2006
Times change, and with that changes business throughout the globe. The past two decades have seen immense change in trade practices, and with modern communication network, things are available with the click of the mouse.........more
Recent Important Judgements:
Service Tax: Authorised Service Station: Service Tax with interest paid before issue of SCN: Since the respondents had paid the service tax along with applicable interest before issue of show cause notice and no fraud or willful intention on the part of the respondent was found by the authorities, in terms of provisions contained in Section 73(3) of the Act, no further proceedings were warranted. Further it had been clarified by the CBEC vide Circular No.F.No.137/167/2006-CX-4 dt. 3/10/2007, that in such cases, no show cause notice was to be issued. The appeal filed by the Revenue is rejected as devoid of merits. (para 2)
Service Tax - Commission Paid to Agents abroad - No liability on the recipient of such services from abroad before Section 66A was introduced in the Finance Act, 1994 on 18/4/2006 - On a careful consideration of the rival submissions, I find that the dispute involved has been decided by the Hon'ble High Court of Bombay in favour of the assessee and upheld by Hon'ble Supreme Court. In the circumstances, I find no merit in the appeal filed by the Revenue and same is rejected. (para 4)
Custom House Agent Service: Input Service Credit: Place of removal is clarified to be place at which the assessee transferred ownership of the goods. In the instant case, the appellants' claim is that the ownership of all the consignments involved were transferred to their buyers at the place of destination. The appellant's contention that they will be in a position to satisfy the authorities that the CHA services involved were available up to the place of removal. In the circumstances, this appeal is allowed by way of remand.
Input Service Credit: Security services are availed for ensuring safety of goods stored in godown. The pest control service is availed in order to ensure clean and healthy environment in the factory premises by preventing pests entering the premises where its final products are manufactured and stored. Assessee is entitled to credit of Service Tax paid on these services.
Interest: Penalty: Once the Service Tax liability is paid settled under 73(3), the penal provisions do not get attracted. However, the impugned order to the extent it sets aside the interest imposed under Section 75 of the Finance Act, 1994 is set aside and the appeal of the Revenue to that extent is allowed.
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