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08.05.2012 - Voice of CA Presents - Updates
Tuesday, May 8, 2012

I.  Today's Topline News:   

  1. Finance Minister introduced amendments to the Finance Bill 2012, to download  (Please click here)
  2. Notification Under DVAT  (Please click here)
  3. Tax on long-term capital gains for PE investors slashed to 10%  (Click for detail)
  4. GAAR Application Deferred by a Year  (Click for detail)
  5. Govt. Rolls Back Excise Duty on Gold Jewellery  (Click for detail)
  6. Fin Min announced Removal of the Proposed 1%  TDS on Transfer of Immovable Property (Click for detail)
  7. Good news: Portable provident fund account numbers coming soon  (Click for detail)
  8. Transfer List of VATO and AVATO  (Please click here)


II.  Useful Case laws on Service Tax:

1.   BSNL Vs. Commissioner of Central Excise Allahabad (CESTAT Delhi), Final Order No. ST/578/2011(PB), Dated: 01.11.2011 in Application Nos. ST/Stay/2245/2010 and ST/Misc/622/2010 in Appeal No. ST/1106/2010

(Matter is remanded back to lower authority)

Brief Fact of the Cases:

  • The appellants provide telephone services through land lines and through mobile phones (GSM services) throughout India except Mumbai and Delhi.

  • The appellants have organized their business to be conducted from different offices for specified areas.

  • Commissioner of Central Excise Allahabad found that the ST-3 returns submitted by BSNL, Banda UP (East) did not include the value of GSM services rendered in Banda during the period Oct., 2003 to Sep., 2008 and was prima facie of the view that Service tax on such services was not paid.

  • The Appellants submit that for services rendered through land lines each Secondary Switching Area (SSA) of the company was registered for payment of service tax and they were paying service tax for each SSA in the Commissionerate where the SSA was located. However in the case of GSM services for the entire area of UP (East) Telecom Circle a centralized registration was taken by General Manager (Mobile Services) at Lucknow and service tax was being paid in Lucknow.


  • Revenue is advised not to convert this matter into a tug of war between Lucknow Commissionerate and Allahabad Commissionerate of the Department. Further to safe guard the interest of revenue, commissionnerate having jurisdiction over such offices has been directed to examine the record in detail to asceration from where the impugned services were billed and collections accounted. (Para 8)

(Please click here for judgment)


2.  RAMESHCHANDRA C. PATEL Vs. Commissioner of Service Tax, Ahmedabad (CESTAT, Amedabad), Final Order No. A/2121/2011-WZB/AHD, Dated: 25.11.2011 in Appeal No. ST/610/2010 (In Favour of Assessee)

Brief Fact of the Case:

  • Appellant/assessee is a labour contractor and was doing conversion of tin plate to containers or granules to jars/pet bottles in the factory premises of M/s. N.K. Proteins Ltd. (NKPL). The machinery, space and all other facilities were provided by NKPL. The appellant was required to take the required labour to the factory of NKPL and was required to undertake the conversion of tin plate to containers or granules to jars/pet bottles depending upon the requirement of NKPL.

  • Proceedings were initiated against the appellant/assessee on the ground that the activity undertaken by the appellant amounts to providing manpower recruitment or supply agency service.


  • Both the authorities have not at all discussed how the service provided by the appellant amounts to service of manpower recruitment or supply. After considering the records, submissions and the orders passed by the lower authorities, I am unable to find any ground on which the appellant can be held liable to service tax on the activity undertaken by them. (Para 4)

(Please click here for judgment)


3.  [ Contribution by  CA Puneet Goyal, and contributor is available at email-id: ]


(Please click here for detail)


Key of Success :

"Your mind is your great friend if you control it but 
your mind is your greatest enemy if it controls you"


Thanks for your valuable time


"Voice of CA"  

CA. Sanjay 'Voice of CA' Agarwal
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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