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03.07.2012 - Voice of CA Presents - Updates
Wednesday, July 4, 2012

Tender Info. :   

    Internal Audit of PMGSY Flagship Programme In J&K State
    Srinagar - J&K
    (Click for detail)
  • Panchayyat and Rural Development Department
    CA Firms for Financial Audit & Concurrent Audit Of All Pris
    Bhopal - MP
    (Click for detail)
  • Karyalaya Zila karyakaram Samanvayak  & Zila Collector
    Empanelment Accountant for Account works
    Churu - Rajasthan
    (Click for detail) 


II.  RBI-Master Circulars/Notifications :   


III.  Today's News :   


IV.  Service Tax Case laws :

1.   The Ankleshwar Taluka ONGC Land Loosers Travelles Co.Op. Vs.  Commissioner of Central Excise, Surat-II (GUJARAT  HC) Tax Appeal No. 2196 of 2010, Dated: 02.03.2012

Brief fact of the case:

The appellant is a Co-operative Society rendering rent-a-cab service to M/s ONGC since many years. This service was provided under the contract agreement dated 21/12/99. Initially, as there was no levy on rent-a-cab service at the relevant date of agreement, there was no condition relating to payment of service tax in the contract. With effect from 1/4/2000, levy of service tax was introduced on rent-a-cab service. This being a new levy, it is the case of the appellant that they were unaware of legal provisions and moreover, there was confusion regarding such liability of the appellant. Thus, on both the grounds the applicability of the service tax and the liability to pay the same being an ambiguity, no service tax was paid at the relevant point of time.


We are unable to appreciate this of the revenue mainly on three grounds.

Firstly, this was comparatively new levy and therefore, unawareness and confusion both are quite possible particularly considering the strata to which the members of the appellant society belong to. They were essentially agriculturists, who lost their lands when plant of ONGC was set up, and therefore, had created society and for many years they were providing rent-a-cab service to the ONGC.

Secondly, as pointed out by the learned counsel for the appellant, there were divergent views of different benches of Tribunal, which may have added to such confusion and

Thirdly if the appellant had persuaded their right of reimbursement of payment of service tax with the ONGC by way of conciliation and arbitration that ipso facto can not negate them the defence of bona fide belief of applicability of service tax.

(Please click here for judgment)


2.  Commissioner of Central Excise Lucknow Vs. Technical Associates Ltd. Lucknow (ALLAHABAD HC), Central Excise Appeal No.2 of 2012, Dated: 12.01.2012 (In Favour of Assessee)

Brief fact of the case:

The respondent-M/s Technical Associates Limited is engaged in rendering the services of maintenance and repair of Transformers. The respondent entered into an agreement with U.P. Power Corporation Limited for repair and testing of damaged Transformers, whereby respondent has to lift the damaged Transformers and after repair, re-installed the same.


As per AO assessee was required to pay service tax on transportation charges in respect of lifting of the Transformers in his own Truck and accordingly raised the demand of service tax along with interest and penalty.


In the instant case, no consignment note was issued and no services were taken from any third party for transportation of the Transformers. The lifting, repair and installation are the composite activities, for which the contract was signed between U.P. Power Corporation and the respondent. Neither transportation services were provided by third party nor any transportation charge was paid by the respondent to anyone. When it is so then no service tax is leviable in the instant case as no transportation charges were paid by the respondent.

In the circumstances, we are of the view that transportation of the Transformers is an integral part of the “repair and maintenance”. Lifting and re-installation of the Transformers are necessary components of the “repair and maintenance” as long as it is not provided by the third party. Therefore, we find no reason to interfere with the impugned order passed by the Tribunal. The same is hereby sustained along with the reasons mentioned therein.

(Please click here for judgment)


Key of Success :

"Distances never separate any relation,
Time never builds any relation.
If feelings are true from heart,
then friends are always friends ever and forever


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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