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12.03.2012 - Voice of CA Presents - Updates
Monday, March 12, 2012


I.  Invitation for Professional Contribution on the upcoming Budget 2012:   

Voice of CA requests the volunteers expert in Direct Taxes, Indirect Taxes and Economic Overview (5 for each) to analysis with their opinion on the upcoming Budget- 2012 at our office :  303, Prabhat Kiran Building, 17 Rajendra Place, New Delhi on March 16, 2012 from 11:00A.M. onward.

The analysis will be mailed on the same day to all the members through Voice of CA along with the name of the contributories.

Whosoever is willing and wants to share his expertise, may contact at the earliest at our email-id:


II.  Useful Case laws on Service Tax:

1.   Amalner Cooperative Bank Ltd. Vs. Commissioner of C. EX., Nashik (CESTAT Mumbai) Final Order No. A/316/2011- WZB/C-IV(SMB), dated:  06-07-2011 in Appeal No. ST/14/2010. (In favour of assesse)

Brief Facts of the Case:

1.  On 19-9-2005, the appellant/assessee surrendered their service tax registration on the ground that the appellant are entitled for the benefit of Notification 6/2005, dated 1-3-2005 as their taxable services are below Rs. 4 lakhs.

2.  Thereafter, in January 2008 a survey was conducted at the premises of the appellant wherein it was found that the appellant had wrongly availed the benefit of Notification 6/2005 and claimed exemption thereunder. Therefore, it was found that appellants are liable to pay service tax for the entire period.


7. After considering the submissions made by both sides. I find that it is not a disputed fact that on 19-9-2005, the appellant had surrendered the service tax registration by availing the benefit of the Notifications 6/2005 dated 1-3-2005. As soon as the registration certificate has been surrendered by appellant, duty is cast on the department to verify whether the appellant has rightly gone out of the ambit of service tax or not. The department has not done this exercise within one year of the surrender of the registration certificate. Therefore, on this ground, extended period is not invocable.

8. The matter is sent back to the adjudicating authority to requantify the demand pertaining to normal period and to give the benefit of input service credit for normal period after due verification of the documents produced by the appellant in support of their claim. As extended period is not invocable, penalty under Section 78 is waived. The penalty under Section 77 is confirmed to the extent of Rs. 1000/-.

(Please click here for judgment)


2.  Strategic Engineering P. Ltd. Vs. Additional Commissioner C. EX., MADURAI (Madras HC), W.P. (MD) No. 11427 of 2006, decided on 08-08-2011 (In favour of Assessee)

Brief fact of the case:

1. The petitioner /assessee were engaged in manufacture of FRP Pipes, falling under Chapter No. 7014.00 of the Central Excise Tariff. The petitioner Company also carries on the business of laying of GRP Pipes to its customers from whom it receives the labour charges.

2. Department contended that above services were taxable under following taxable services
(a) Erection, Commissioning and Installation’ for receipt of labour charges for Erection of pipes and laying of pipes; and
(b)  ‘Scientific or Technical Consultancy services’ rendered by the Petitioner company to its non-resident clients.

3. The petitioner/assesse contended that it was not a taxable services accordingly filed writ petition against the order of Commissioner of Central Excise.


1. Court held that after admitting writ petition even though alternate statutory remedy available, it can be decided on merit basis. (Para 6 & 7)

2. Court held that services in given case was taxable under works contract services and it was first imposed on 01.06.2007 and accordingly works contract services provided prior to that period is not taxable. (Para, 15, 16, 18, 19).

(Please click here for judgment)


III.  Today's Topline News : 
  1. Union Budget 2012-13 on 16th March 2012, Railway Budget 2012-13 on 14th March  (Click for detail)

  2. Co. Law - Circular No. 04 - Allotment of Director’s Identification Number (DIN) under Companies Act, 1956  (Click for detail)

  3. An Important Step to Revamp Complex Structure of DTC  (Click for detail)

  4. Date Extended For Uploading Form 501  (Click for detail)


IV.  Tenders Info. : 
  1. Government of Punjab
    CA Firm for Concurrent Audit of State Health Society & 20 District Health Societies
    (Click for detail)

  2. National Projects Construction Corporation Ltd.
    Computerization Of Finance and Accounting System
    (Click for detail)


Key of Success :

"Life is not just waiting for someone who is made for you,
but life is also loving someone who is happy because of you


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 

CA. Avinash Gupta, Co-Moderator-International Taxation 


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