|  | | | Alert No 20101217A :December 17, 2010 |
| The text of Finance Minister's speech at a recent Seminar on GST : "I am happy to be here at the inauguration of the Seminar on the Goods and Service Tax (GST). Let me start by congratulating the Comptroller and Auditor General of India for taking this timely initiative for bringing together the various stakeholders to deliberate on this issue when India's tax structure and its legal framework is being reviewed and is in the process of being finalized.
Text of CAG, Shri Vinod Rai's speech at the National Seminar on 'Goods and Services Tax: Transition issues' : "This seminar is being hosted as part of the celebrations associated with completion of 150 years of the institution of the Comptroller and Auditor General of India.
Consistency needs to be the hallmark of any judicial system. Towing the principles of judicial discipline in deciding any issues, relating to taxation can lead to substantial reduction in litigation and saving of the tax payers' money. |
Recent Important Judgements
Service Tax: Commercial and Industrial Construction Service: Work Contract: Classification of Service: Section 65A being embedded to the statute cannot be read in isolation of Section 65(25b) to serve it's purpose. The principles laid down for classification embraces the activities of the appellant to the appropriate category which the Legislature intended by Section 65(25b) of the Finance Act 1994.
Service Tax: Work Contract: Activities which were not probably appearing in any of the previous entries or to become more specific in terms of section 65A are embodied under the new entry. Reading of Section 65(105)(zzzza) throws light that the term "works contract" is such an activity relating to sale of goods followed by services to achieve the purpose enumerated by sub-clause (i) of Section 65 (105)(zzzza) of the Act. Those are brought by this specific entry under the caption of works contract service without making other entries otiose or redundant.
Service Tax: Section 65 (105): New Entry does not repeal previous entry: Entries independent of each other : The new entry does not repeal the previous entry appearing under Section 65(25b) nor also the new entry tries to encroach over the previous entry, so also the new entry does not make the previous entry redundant. At this stage it appears that the entries are independent of each other to serve the object of law within their exclusive scope and ambit without encroaching each other.
Service Tax: Commercial and Industrial Construction Service: Work Contract & Pre-deposit taking into consideration appellants financial difficulties pleaded and the amount of Rs. 2,00,000/- said to have been deposited (subject to verification by Revenue), and direct further deposit of Rs. 5,00,000/- (Rupees five lakhs only) in installments.
Service Tax: Commercial and Industrial Construction Service: Work Contract: Pre-deposit in installments: The first installment of Rs. 50,000/- (Rupees fifty thousand only) shall be payable by 30th August 2010 and subsequent installments shall be payable in nine equal monthly installments of Rs. 50,000/- (Rupees fifty thousand only) by 15th of each month.
Service Tax: Maintenance or Repair services: Pre-deposit: The payments involved are reimbursement of expenditure and not consideration received by the appellants for any service.
Service Tax: Cenvat Credit: Rule 6 (3) of Cenvat Credit Rules: Pre-deposit: Appellants constructed the flats and transferred to the land owners in exchange for land received. No services are involved in this transaction; there are no exempt services. Therefore, Rule 6(3), of the Cenvat Credit Rules has been incorrectly invoked to demand Cenvat Credit availed by the appellant in excess of 20% of the aggregate input service credit. The impugned demands and penalties are not sustainable. Order complete waiver of the dues adjudged against the appellants pending decision in the appeal.
Service Tax: Goods Transport Agency Service: Abatement: Remand: The subsequent circular dated 21.08.2008 indicates that even a general declaration from the GTA would suffice the condition of the notification. Allow the stay petition unconditionally and set-aside the impugned order and remand the matter to Commissioner (Appeals) for decision on merits without insisting on any pre-deposit.
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