VAT AND SERVICE TAX CASES (VST)

ONLINE EDITION

VOL. 6 : ISSUE DATED 24-6-2016

HIGH COURTS


Entries in Schedule--Entry tax--Rubber process oil--Not a petroleum product--Not to be classified under "tar and others"--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979)--Notification No. FD 11 CET 2002(I), dated March 30, 2002.--Mysore Polymers and Rubber Products Ltd. v. Assistant Commissioner of Commercial Taxes (Audit)-2 (Karn) . . . 598

Entry tax--Entries in Schedule--Rubber process oil--Not a petroleum product--Not to be classified under "tar and others"--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979)--Notification No. FD 11 CET 2002(I), dated March 30, 2002.--Mysore Polymers and Rubber Products Ltd. v. Assistant Commissioner of Commercial Taxes (Audit)-2 (Karn) . . . 598


CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL


Clearing and forwarding agent--See Service tax (CESTAT-Bang) . . . 602

Customs house agent services--Service tax--Customs house agent--July 1, 2003 to December 31, 2004--Activities undertaken by appellant covered by Trade Note No. 39/97 dated June 11, 1997 issued by Delhi Commissionerate--Agreements entered into by appellant showing reimbursement of estimated actual cost of activities and payment of separate agency commission to appellant--Transportation from godown to various places not part of agreement on basis of which activities within port undertaken--Appellant registered as customs house agent and discharging liability on service charges--Stand by Department that activities needed reclassification as clearing and forwarding agent service--Not sustainable--Finance Act (32 of 1994), s. 65(25).--International Shippers & Traders Pvt Ltd. v. Commissioner of Central Excise, Customs and Service Tax (CESTAT-Bang) . . . 602

Franchise service--Service tax--Value of taxable service--Limitation--Penalty--University offering distance education programme through learning centres supervised by regional centres--Agreement providing that learning centres duly authorised by University to engage in providing training/education by offering various approved courses of IT and non-IT streams according to commands and norms of University--Students on rolls of University and infrastructural requirements to be adhered to by learning centres laid down by University--Examination, evaluation, declaration of results and award of degrees also obligations of University--Learning centres to abide by terms and conditions specified in memorandum of understanding--Learning centres granted representational rights to provide service and to undertake various activities identified with University--Is a franchise service by University--Tax leviable on amount collected by University from learning centres minus amount paid by it to learning centres--Amount paid to Regional Centres by University not excludible--On facts extended period of limitation not invocable--Penalty under section 78 not attracted--Finance Act (32 of 1994), ss. 65(47)/(48)/ (105)(zze), 67, 73(1) proviso, 76, 78.--Punjab Technical University v. C. C. E. & S. T. (CESTAT-New Delhi) . . . 577

Limitation--See Service tax (CESTAT-New Delhi) . . . 577

Penalty--See Service tax (CESTAT-New Delhi) . . . 577

Service tax--Customs house agent--July 1, 2003 to December 31, 2004--Activities undertaken by appellant covered by Trade Note No. 39/97 dated June 11, 1997 issued by Delhi Commissionerate--Agreements entered into by appellant showing reimbursement of estimated actual cost of activities and payment of separate agency commission to appellant--Transportation from godown to various places not part of agreement on basis of which activities within port undertaken--Appellant registered as customs house agent and discharging liability on service charges--Stand by Department that activities needed reclassification as clearing and forwarding agent service--Not sustainable--Finance Act (32 of 1994), s. 65(25).--International Shippers & Traders Pvt Ltd. v. Commissioner of Central Excise, Customs and Service Tax (CESTAT-Bang) . . . 602

----Franchise service--Value of taxable service--Limitation--Penalty--University offering distance education programme through learning centres supervised by regional centres--Agreement providing that learning centres duly authorised by University to engage in providing training/education by offering various approved courses of IT and non-IT streams according to commands and norms of University--Students on rolls of University and infrastructural requirements to be adhered to by learning centres laid down by University--Examination, evaluation, declaration of results and award of degrees also obligations of University--Learning centres to abide by terms and conditions specified in memorandum of understanding--Learning centres granted representational rights to provide service and to undertake various activities identified with University--Is a franchise service by University--Tax leviable on amount collected by University from learning centres minus amount paid by it to learning centres--Amount paid to Regional Centres by University not excludible--On facts extended period of limitation not invocable--Penalty under section 78 not attracted--Finance Act (32 of 1994), ss. 65(47)/(48)/(105)(zze), 67, 73(1) proviso, 76, 78.--Punjab Technical University v. C. C. E. & S. T. (CESTAT-New Delhi) . . . 577

Value of taxable service--See Service tax (CESTAT-New Delhi) . . . 577


PRINT EDITION

VOLUME 91 : PART 4 : ISSUE DATED 24-6-2016


HIGH COURTS


Branch transfer--See Central sales tax (Bom) . . . 385

Central sales tax--Inter-State transfers not by way of sale but including job-work and goods return--Furnishing of form F mandatory--If declaration not issued by State in form F and failure to produce it not dealer's fault, he may request assessing officer to take that circumstance into consideration--Assessing officer can pass such orders as permissible in law--Circulars cannot be interpreted to dispense with production of form F--Maharashtra Value Added Tax Act, 2002 (9 of 2005)--Central Sales Tax Act (74 of 1956), ss. 2(b), (d), (e), (g), (h), 6, 6A, 13(4)--Central Sales Tax (Registration and Turnover) Rules, 1957, r. 12(5)--Central Sales Tax (Bombay) Rules, 1957, r. 4--Trade Circular No. 2T of 2010, dated January 11, 2010--Circular No. 5T of 2009, dated January 29, 2009--Circular No. 16T of 2007, dated February 20, 2007.--Johnson Matthey Chemicals India Pvt. Ltd. v. State of Maharashtra (Bom) . . . 385

Circulars and clarifications--Trade circulars--Interpretation--Cannot be contrary to statute.--Johnson Matthey Chemicals India Pvt. Ltd. v. State of Maharashtra (Bom) . . . 385

----See also Central sales tax (Bom) . . . 385

Declaration form--Central sales tax--Inter-State transfers not by way of sale but including job-work and goods return--Furnishing of form F mandatory--If declaration not issued by State in form F and failure to produce it not dealer's fault, he may request assessing officer to take that circumstance into consideration--Assessing officer can pass such orders as permissible in law--Circulars cannot be interpreted to dispense with production of form F--Maharashtra Value Added Tax Act, 2002 (9 of 2005)--Central Sales Tax Act (74 of 1956), ss. 2(b), (d), (e), (g), (h), 6, 6A, 13(4)--Central Sales Tax (Registration and Turnover) Rules, 1957, r. 12(5)--Central Sales Tax (Bombay) Rules, 1957, r. 4--Trade Circular No. 2T of 2010, dated January 11, 2010--Circular No. 5T of 2009, dated January 29, 2009--Circular No. 16T of 2007, dated February 20, 2007.--Johnson Matthey Chemicals India Pvt. Ltd. v. State of Maharashtra (Bom) . . . 385

Entries in Schedule--Value added tax--Stone chips--Whether fall within taxable entry not material--Residuary clause applies--Tripura Value Added Tax Act, 2004 (1 of 2005), Sch. II(b), entry 67(iv).--Sri Swapan Kumar Saha v. State of Tripura (Tripura) . . . 434

Exemption--Service tax--Construction of academic block for Indian Institute of Technology--Is for Government authority--Exempt--Finance Act (32 of 1994), ss. 65B(31), 93--Notification No. 25/2012-ST, dated June 20, 2012--Notification No. 2/2014-ST, dated January 30, 2014--Notification No. 6/2015-ST dated March 1, 2015.--Shapoorji Paloonji & Company Pvt. Ltd. v. Commissioner, Customs, Central Excise and Service Tax (Patna) . . . 426

----Value added tax--Entries in Schedule--Stone chips--Whether fall within taxable entry not material--Residuary clause applies--Tripura Value Added Tax Act, 2004 (1 of 2005), Sch. II(b), entry 67(iv).--Sri Swapan Kumar Saha v. State of Tripura (Tripura) . . . 434

Export or import--Legislative powers--State Legislature--No power to tax sales of goods in course of import--Import of stone chips from Bangladesh--Notices and assessments quashed--Tripura Value Added Tax Act, 2004 (1 of 2005), ss. 5(2)(b), 41(1).--Babi Begum Akter v. State of Tripura (Tripura) . . . 439

----Legislative powers--State Legislature--No power to tax sales of goods in course of import--Import of stone chips from Bangladesh--Notices and assessments quashed--Tripura Value Added Tax Act, 2004 (1 of 2005), ss. 5(2)(b), 41(1).--Sri Swapan Kumar Saha v. State of Tripura (Tripura) . . . 434

Government--See Service tax (Patna) . . . 426

Interest-free sales tax deferral--Sales tax--Purchase by dealer of unit enjoying benefit of interest-free sales tax deferral--Government Order permitting transfer and State Industries Promotion Corporation permitting transfer of benefit--Dealer not to be denied benefit--Tamil Nadu General Sales Tax Act (1 of 1959)--Central Sales Tax Act (74 of 1956).--ITC Limited v. Assistant Commissioner (CT) (Mad) . . . 443

Legislative powers--State Legislature--No power to tax sales of goods in course of import--Import of stone chips from Bangladesh--Notices and assessments quashed--Tripura Value Added Tax Act, 2004 (1 of 2005), ss. 5(2)(b), 41(1).--Babi Begum Akter v. State of Tripura (Tripura) . . . 439

----State Legislature--No power to tax sales of goods in course of import--Import of stone chips from Bangladesh--Notices and assessments quashed--Tripura Value Added Tax Act, 2004 (1 of 2005), ss. 5(2)(b), 41(1).--Sri Swapan Kumar Saha v. State of Tripura (Tripura) . . .434

Service tax--Exemption--Construction of academic block for Indian Institute of Technology--Is for Government authority--Exempt--Finance Act (32 of 1994), ss. 65B(31), 93--Notification No. 25/2012-ST, dated June 20, 2012--Notification No. 2/2014-ST, dated January 30, 2014--Notification No. 6/2015 ST dated March 1, 2015.--Shapoorji Paloonji & Company Pvt. Ltd. v. Commissioner, Customs, Central Excise and Service Tax (Patna) . . . 426

State Legislature--See Legislative powers (Tripura) . . . 434, 439

Value added tax--See Entries in Schedule (Tripura) . . . 434


CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL


Cargo handling agent--See Service tax (CESTAT-Ahd) . . . 451

Construction of taxing statutes--Principle of pari materia statutes--Applicable to statutes if they relate to same person or things ; same class or person or things or same purpose or object.--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451

----Referential incorporation--Permissible to refer to statute from which provisions incorporated to infer scope of provisions incorporated if such provisions throw light to meaning of provision incorporated.--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451

Limitation--See Service tax (CESTAT-Ahd) . . . 451

Port services--Service tax--Cargo handling agent--Limitation--Activities of lighterage and local transportation rendered within port area and handling of export cargo within port undertaken by cargo handling agent in terms of a licence--Agent not rendering any service "authorised" by port--Not liable to tax under port services--On facts extended period of limitation not invocable--"Authorised by port" meaning of--Finance Act (32 of 1994), s. 65(82), (105)(zzl).--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451

Referential incorporation--Construction of taxing statutes--Permissible to refer to statute from which provisions incorporated to infer scope of provisions incorporated if such provisions throw light to meaning of provision incorporated.--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451

Service tax--Port services--Cargo handling agent--Limitation--Activities of lighterage and local transportation rendered within port area and handling of export cargo within port undertaken by cargo handling agent in terms of a licence --Agent not rendering any service "authorised" by port--Not liable to tax under port services--On facts extended period of limitation not invocable--"Authorised by port" meaning of--Finance Act (32 of 1994), s. 65(82), (105)(zzl).--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451

Words and phrases--"Authorised by port", meaning of.--Shreeji Shipping v. C. C. E. & S. T. (CESTAT-Ahd) . . . 451
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