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16.04.2012 - Voice of CA Presents - Updates
Monday, April 16, 2012


I.  Today's Topline News:   

  1. Revised format for Excise and Service Tax Return & amp; proposed changes in Return Periodicity  (Click for detail)
  2. Monetary Policy: RBI may be forced to cut rates despite inflationary pressures  (Click for detail)
  3. SEBI Circular - Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR)  (Click for detail)
  4. HC Ruling on Dividend Income a Relief for Brokers  (Click for detail)
  5. Window dressing: Banks raise Rs 2 lakh crore in 6 days  (Click for detail)
  6. Top 20 private companies lose $36 billion in tough FY12; AV Birla, Bajaj & Hero Group gain the most  (Click for detail)


II.  Useful Case laws on Service Tax:

1.   IDEA Mobile Communications Ltd. Vs. Commissioner of C. EX., Meerut (CEST at New Delhi), Final Order No. ST/603/2011(PB), Dated: 23-11-2011 in Appeal No. ST/268/2007 (In favour of assessee)

Brief history of relevant provisions:

Before the date when CENVAT Credit Rules, 2004 had come into effect i.e.10.09.2004, CENVAT credit was available under following rules:

  • Cenvat Credit Rules, 2002
  • Service Tax Credit Rules, 2002

Service Tax Credit Rules, 2002 allowed to take cenvat credit of input service falls in the same category of taxable service as that of output service up to 13.05.2003. However wef 14.05.2003 these rules had been amended and cenvat credit of any input service could be taken.

Rule 11(1) of CENVAT Credit Rules, 2004, provides for availment and utilisation of the Cenvat credit earned during the period prior to 10-9-2004 in respect of inputs/capital goods received, under Cenvat Credit Rules, 2002 and the service tax credit earned under Service Tax Credit Rules, 2002, as the same existed during the period prior to 10/9/04, and which is lying unutilised.


  1. The Commissioner’s findings that in view of the provisions of Rule 3(1) of Cenvat Credit Rules, 2004 the service tax credit cannot be allowed on the basis of the invoices issued prior to 10-9-2004 is incorrect as an assessee may have earned some service tax credit during period prior to 10-9-2004 under Service Tax Credit Rules, 2002, which may be lying unutilised as on 11-9-2004 and this credit has to be allowed under Rule 11(1) of Cenvat Credit Rules, 2002. (Para 6.1)
  2. The Commissioner’s finding that during the period prior to 10-9-2004, in terms of Service Tax Credit Rules, 2002, the Cenvat credit was available only in respect of those input services which were of the same category as that of output service is factually incorrect as these rules had been amended w.e.f. 14-5-2003 by Notification No. 5/2003-S.T. so as to permit Cenvat credit even in respect of those input services which were not falling in the same category as that of output service. (Para 6.2)

(Please click here for judgment)


2.  Indian Institute of Forest Management Vs. Commissioner of C. EX., Bhopal (CESTAT New Delhi), Final Order Nos. ST/571-572/2011(PB), Dated: 21-10-2011 in Appeal Nos. ST/695/2008 and ST/1062/2010 (In favour of Assessee)


The appellant/assessee organizing short term courses for officers in various subjects relating to Forest Management, Social Forestry, Water shed management, Environmental Management System etc. for which no degree or diploma is given. Whether it is taxable service under management consultancy services.


Just imparting training in certain areas to the Officers of certain organizations does not amount to rendering the service of Management Consultancy either directly or indirectly to that organization. We, therefore, hold that the activity of organizing of the short term courses, in this case, is not covered by the definition of ‘Management Consultancy Service’. (Para 5)

(Please click here for judgment)


III.  Tenders Info.: 
  1. Chief Auditor Punjab State Power Corporation Limited
    Internal Audit for the year 2011-12 of Corporate Offices & Field offices
    Patiala - Punjab
    (Click for detail)

  2. Karyalaya Nagar Palika
    Maintenance of Account and Preparation of Records
    Sawai Madhopur - Rajasthan
    (Click for detail)


Key of Success :

"Possibility or Impossibility doesn't depend
on the size of our goal but on the size of our faith,
so always keep faith to make everything possible"


Thanks for your valuable time


"Voice of CA"  

CA. Agarwal Sanjay  
' 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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