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23.02.2012 - Voice of CA Presents - Updates on Service Tax
Thursday, February 23, 2012


I.  Recent Updates:

1.   TEXPORT INDUSTRIES P. LTD. Vs. COMMISSIONER OF SERVICE TAX, MUMBAI-IV, Final Order Nos. A/328-329/2011-WZB/C-IV(SMB), dated 4-8-2011 in Appeal Nos. ST/260-261/2010  (In favour of Assessee)

Brief Fact of the Case:

i)  Appellant/Assessee filed a refund claim for the input services used in export of goods by claiming the benefit of Notification 41/07 as amended.

ii)  The lower adjudicating authority as well as commissioner (A) rejected the refund claim for the service tax paid on technical testing and analysis service, on the ground that the condition of the Notification that there should be a written agreement was not fulfilled.


The lower authorities have denied the refund only on the ground that there is no written agreement between the exporter and his buyers. The ld. Commissioner (Appeals) did not accept it on the ground that this cannot be treated as agreement since it is between banks and not between concerned parties. I agree with the contention of the appellant that the letter of credit is opened by the bank only on the instructions of customers. I also agree with the contention of the ld. Counsel (for appellant) that a liberal view has to be taken for the interpretation to reduce the cost of goods exported.
In view of the above, I set aside the ld. Commissioner (Appeals)’s order and allow the appeals. Appeals are allowed.

(Please click here for judgment)


2.  KHYATI TOURS & TRAVELS Vs. COMMISSIONER OF C. EX., AHMEDABAD, Final Order No. A/1059/2011-WZB/AHD, Stay Order No. S/859/2011-WZB/AHD, dated 13-6-2011 in Application No. ST/Stay/1121/2010 in Appeal No. ST/386/2010  (In Favour of Assessee)

Brief Fact of the case:

i)  Appellants/assesssee were engaged in the business of providing service namely “Rent-a-cab”. On scrutiny of ST-3 return filed by the appellants for the period October, 2006 to March, 2007, it was observed that the appellants have discharged their service tax liabilities after availing abatement of 60% provided under Notification No. 1/2006-S.T., dated 1-3-2006 and simultaneously availed and utilized cenvat credit. However as per one of the condition of said Notification appellants/assesssee can not take CENVAT credit if availing abatement under said notification.

ii) Appellants/assesssee had reversed CENVAT credit taken by them subsequently. As such, it amounts to as if no credit has been availed by the appellants. The said plea of the appellants was not accepted by the Commissioner (Appeals) who rejected the appeal. Hence the present appeal.


Inasmuch as the appellants have admittedly reversed the credit along with interest, we find that benefit of the notification in question would be available to them. Accordingly, we set-aside the impugned order and allow the appeal with consequential relief to the appellants. Stay petition also get disposed off.

(Please click here for judgment)


II.  Today's Topline News : 
  1. Service Tax Cir. No. 152 - Toll in the nature of ‘user charge' or ‘access fee' paid by roads users  (Click for detail)

  2. FEMA Cir. No. 82 - Release of Foreign Exchange for Imports - Further Liberalisation  (Click for detail)

  3. GoM approves draft Public Procurement Bill  (Click for detail)

  4. Government working for early implementation of GST: Pranab  (Click for detail)

III.  Tenders Info. : 
  1. Dakshin Haryana Bijli Vitran Nigam
    CA Firm for Preparation Consumption Security Register
    Hisar - Haryana
    (Click for detail)

  2. Dakshin Haryana Bijli Vitran Nigam
    Audit Firms for carrying out audit of receivable & further segregation of data
    Hisar - Haryana
    (Click for detail)


Key of Success :

"Missing someone when you are aloneis not affection,
but thinking of someone even when you are busy.
Is called real relation


Thanks for your valuable time


"Voice of CA"  

CA. Sanjay Kumar Agarwal
Founder - Voice of CA 
Mob : 9811080342,      
CA. Sidharth Jain, Co-Moderator 
CA. Mukesh K Bansal, Co-Moderator-FEMA    


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