VAT AND SERVICE TAX CASES (VST)

ONLINE EDITION

VOL. 4 : ISSUE DATED 27-2-2015

HIGH COURTS


Appeal----Value added tax--Reassessment order by assessing authority levying interest and penalty on outstanding dues confirmed by first appellate authority--Tribunal setting aside order by first appellate authority with direction to assessing authorities to re-consider matter in light of its observations--Assessing authority passing order holding that judgment of Tribunal in case of assessee nullified based on subsequent decisions in State of Karnataka v. Kitchen Appliances India Limited [2012] 51 VST 439 (Karn)--On application for rectification of that order based on subsequent decisions in State of Karnataka v. Kitchen Appliances India Limited [2012] 51 VST 439 (Karn), Southern Motors v. State of Karnataka [2014] 3 VST-OL 578 (Karn)--Not justified--No steps taken to assail decision of Tribunal allowing it to become final--Decision of Tribunal, binding on parties even if erroneous--Karnataka Value Added Tax Act, 2003 (32 of 2004).--IFB Industries Limited v. Commercial Tax Officer (Audit) (Karn) . . . 206

----See also Writs under Constitution (AP) . . . 198

Assessment--Value added tax--Natural justice--Order of assessment passed without furnishing dealer with copies of documents relied on--Illegal and liable to be set aside--Andhra Pradesh Value Added Tax Act (5 of 2005).--Bhanu Enterprises v. Commercial Tax Officer (AP) . . . 198

----Writs under Constitution--Existence of alternative remedy--Order of assessment passed in violation of principles of natural justice--Remedy of appeal not efficacious--Writ petition maintainable--Constitution of India, art. 226.--Bhanu Enterprises v. Commercial Tax Officer (AP) . . . 198

Burden of proof--Purchase tax--Condition precedent for levy--Department must establish that goods purchased used for manufacture of other goods for sale--Factual finding recorded by Tribunal that amount incurred as cooly charges paid much before disclosure under Voluntary Disclosure of Income Scheme and dealer declared specific items of jewels sold as gold jewels without any conversion--Failure by assessing officer to establish that dealer had used such gold for manufacture of other goods for sale or otherwise--Levy of purchase tax on premise that old gold jewel utilised for manufacture of new gold jewels--Not justified--Tamil Nadu General Sales Tax Act (1 of 1959), s. 7A.--State of Tamil Nadu v. V. S. V. & Sons (Mad) . . . 230

Commissioner--Revision--Erroneous and prejudicial to Revenue--Penalty--No failure by dealer to file returns or disclose turnover in respect of particular goods--Levy of penalty not automatic--Goods claimed exempt brought to tax under Schedule--Order levying penalty at less than maximum prescribed--No prejudice to Revenue--Revision not warranted--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979), s. 15(2).--Methodex Systems Limited v. Additional Commissioner of Commercial Taxes (Zone-1) (Karn) . . . 218

----See also Reassessment (AP) . . . 214

Entries in Schedule--Entry tax--Liability to tax--Machinery--Meaning of--Currency counting machine--Is a machine--That one of its operations carried out through electronic device not material--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979), s. 5(4), (5)--Notification No. FD 11 CET 2002(1), dated March 30, 2002.--Methodex Systems Limited v. Additional Commissioner of Commercial Taxes (Zone-1) (Karn) . . . 218

Entry tax--Liability to tax--Machinery--Meaning of--Currency counting machine--Is a machine--That one of its operations carried out through electronic device not material--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979), s. 5(4), (5)--Notification No. FD 11 CET 2002(1), dated March 30, 2002.--Methodex Systems Limited v. Additional Commissioner of Commercial Taxes (Zone-1) (Karn) . . . 218

Jurisdiction--See Reassessment (AP) . . . 214

Natural justice--Value added tax--Assessment--Order of assessment passed without furnishing dealer with copies of documents relied on--Illegal and liable to be set aside--Andhra Pradesh Value Added Tax Act (5 of 2005).--Bhanu Enterprises v. Commercial Tax Officer (AP) . . . 198

----See also Writs under Constitution (AP) . . . 198

Penalty--See Revision (Karn) . . . 218

Precedent--See Appeal (Karn) . . . 206

Purchase tax--Condition precedent for levy--Department must establish that goods purchased used for manufacture of other goods for sale--Factual finding recorded by Tribunal that amount incurred as cooly charges paid much before disclosure under Voluntary Disclosure of Income Scheme and dealer declared specific items of jewels sold as gold jewels without any conversion--Failure by assessing officer to establish that dealer had used such gold for manufacture of other goods for sale or otherwise--Levy of purchase tax on premise that old gold jewel utilised for manufacture of new gold jewels--Not justified--Tamil Nadu General Sales Tax Act (1 of 1959), s. 7A.--State of Tamil Nadu v. V. S. V. & Sons (Mad) . . . 230

Reassessment--Value added tax--Revision--Commissioner--Jurisdiction--Assessment made for 2007-2008 determining under-declared output tax liability--Show-cause notice issued by Deputy Commissioner (CT) for revision of assessment order--Order described as reassessment passed determining assessee's under-declared output tax liability for 2005-06 to 2008-09--Material irregularity in exercise of jurisdiction--Order neither one of reassessment nor revision--Set aside--Andhra Pradesh Value Added Tax Act (5 of 2005), ss. 21(6), 32--Andhra Pradesh Value Added Tax Rules, 2005, r. 59(1).--Capricon Food Products India Ltd. v. Deputy Commissioner (CT) (AP) . . . 214

Revision--Erroneous and prejudicial to Revenue--Penalty--No failure by dealer to file returns or disclose turnover in respect of particular goods--Levy of penalty not automatic--Goods claimed exempt brought to tax under Schedule--Order levying penalty at less than maximum prescribed--No prejudice to Revenue--Revision not warranted--Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act (27 of 1979), s. 15(2).--Methodex Systems Limited v. Additional Commissioner of Commercial Taxes (Zone-1) (Karn) . . . 218

----Value added tax--Reassessment--Commissioner--Jurisdiction--Assessment made for 2007-2008 determining under-declared output tax liability--Show-cause notice issued by Deputy Commissioner (CT) for revision of assessment order--Order described as reassessment passed determining assessee's under-declared output tax liability for 2005-06 to 2008-09--Material irregularity in exercise of jurisdiction--Order neither one of reassessment nor revision--Set aside--Andhra Pradesh Value Added Tax Act (5 of 2005), ss. 21(6), 32--Andhra Pradesh Value Added Tax Rules, 2005, r. 59(1).--Capricon Food Products India Ltd. v. Deputy Commissioner (CT) (AP) . . . 214

Value added tax--See Appeal (Karn) . . . 206

----See Assessment (AP) . . . 198

----See Reassessment (AP) . . . 214

VAT Tribunal--Value added tax--Reassessment order by assessing authority levying interest and penalty on outstanding dues confirmed by first appellate authority--Tribunal setting aside order by first appellate authority with direction to assessing authorities to re-consider matter in light of its observations--Assessing authority passing order holding that judgment of Tribunal in case of assessee nullified based on subsequent decisions in State of Karnataka v. Kitchen Appliances India Limited [2012] 51 VST 439 (Karn)--On application for rectification of that order based on subsequent decisions in State of Karnataka v. Kitchen Appliances India Limited [2012] 51 VST 439 (Karn), Southern Motors v. State of Karnataka [2014] 3 VST-OL 578 (Karn)--Not justified--No steps taken to assail decision of Tribunal allowing it to become final--Decision of Tribunal, binding on parties even if erroneous--Karnataka Value Added Tax Act, 2003 (32 of 2004).--IFB Industries Limited v. Commercial Tax Officer (Audit) (Karn) . . . 206

Words and phrases--"Machinery", meaning of.--Methodex Systems Limited v. Additional Commissioner of Commercial Taxes (Zone-1) (Karn) . . . 218

Writs under Constitution--Existence of alternative remedy--Order of assessment passed in violation of principles of natural justice--Remedy of appeal not efficacious--Writ petition maintainable--Constitution of India, art. 226.--Bhanu Enterprises v. Commercial Tax Officer (AP) . . . 198


PRINT EDITION

VOLUME 78 : PART 3 : ISSUE DATED 27-2-2015


HIGH COURTS


Appeal--Value added tax--Appellate Tribunal--Limitation--Condonation of delay--Appeal filed before Tribunal with application for condonation of delay of 155 days--Plea that delay due to different levels of decision making authorities regarding filing appeal--Constitutes "sufficient cause"--Tribunal not justified in not condoning delay--Haryana Value Added Tax Act (6 of 2003)--Limitation Act (36 of 1963), s. 5.--Indian Oil Corporation Ltd. v. State of Haryana (P&H) . . . 360

----Value added tax--Limitation--Condonation of delay--Principles stated.--Indian Oil Corporation Ltd. v. State of Haryana (P&H) . . . 360

Assessment--Sales tax--Interest--Interest at two per cent. for short-fall in advance tax--Not applicable to tax payable in terms of final assessment--Karnataka Sales Tax Act (25 of 1957), ss. 12(1B), (3), 12B, 13.--State of Karnataka v. Mandovi Motors (P) Ltd. (Karn) . . . 355

Central sales tax--See Recovery of tax (P&H) . . . 310

Cenvat credit--Service tax--Goods transport agency--Transport service used by manufacturer for transportation of finished goods from place of removal up to premises of purchaser--Is input service--Cenvat Credit Rules, 2004, r. 2(l).--Commissioner v. Ellora Time Ltd. (Guj) . . . 365

Check-post--Sales tax--Penalty--Check-post officer--Jurisdiction--Check-post officer not competent to go into nature of transaction--Cannot assume jurisdiction of assessing officer and determine whether branch transfer or inter-State sale--Drivers of vehicles carrying with them some more document other than relevant ones showing stock transfer--Levy of penalty on ground goods sold in course of inter-State sales and attempt to evade tax--Not justified--Punjab General Sales Tax Act (46 of 1948), s. 14B.--State of Punjab v. Shreyans Industries Ltd. (P&H) . . . 264

----Value added tax--Evasion of tax--Seizure of goods--General principles--Last resort--Seizure for undervaluation--Not proper--Auction of goods--Conditions precedent--Notice to consignor or consignee--Minimum of 15 days to be given in public notice of auction--Sanction of Commissioner--Cannot be of Superintendent--No definite finding that goods undervalued--No notice issued to dealer--No material to indicate sanction of Commissioner--Notice of auction published only in one newspaper giving three days notice--Fixation of reserve price at three times tax payable on price estimated by seizing officer plus five per cent. for overhead cost--Reserve price lower than price declared by dealer--Arbitrary, especially when goods seized for having been undervalued--Auction un-conscionable--Tax to be calculated only on sum fetched at sale--Tripura Value Added Tax Act, 2004 (1 of 2005), s. 67--Tripura Value Added Tax Rules, 2005, r. 71(5).--Ruchi Soya Industries Ltd. v. State of Tripura (Tripura) . . . 273

Check-post officer--See Check-post (P&H) . . . 264

Commissioner--See Reassessment (P&H) . . . 257

----See Search and seizure (Tripura) . . . 273

Company--Sales tax--Recovery of tax--Company in liquidation--Recovery personally from director--Not permissible in absence of specific provision in statute--Recovery of dues of company of State sales tax and value added tax not permissible from director--No proceedings taken specifically for recovery of Central sales tax under Central Sales Tax Act--No notice issued to director prior to recovery of sum for which director stood guarantee--Summons quashed--Haryana General Sales Tax Act (20 of 1973)--Haryana Value Added Tax Act (6 of 2003)--Central Sales Tax Act (74 of 1956), ss. 8(5), 18--Notification dated September 4, 1995.--Subhash Goyal v. State of Haryana (P&H) . . . 310

Director--See Recovery of tax (P&H) . . . 310

Evasion of tax--See Search and seizure (Tripura) . . . 273

Forfeiture--Sales tax--Penalty--Excess collection of sums as tax--Forfeiture and penalty only in case of unauthorised collection of sums by way of tax on exempt goods--Not where goods taxable--Oil companies not specified at relevant point of time--Purchases therefrom not purchase from oil companies--No question of exemption of tax and tax paid on purchases--Sales tax on sales collected in excess and excess amount so collected remitted to Government--No contravention since goods not exempted--Order of forfeiture and penalty liable to be set aside--Assam General Sales Tax Act (12 of 1993), ss. 8, Expln. 2, 65A--Assam General Sales Tax Rules, 1993, r. 12.--Indian Oil Corporation Ltd. v. State of Assam (Gauhati) . . . 343

Goods transport agency service--See Service tax (Guj) . . . 365

Input service--See Service tax (Guj) . . . 365

Interest--Sales tax--Interest at two per cent. for short-fall in advance tax--Not applicable to tax payable in terms of final assessment--Karnataka Sales Tax Act (25 of 1957), ss. 12(1B), (3), 12B, 13.--State of Karnataka v. Mandovi Motors (P) Ltd. (Karn) . . . 355

Jurisdiction--See Check-post (P&H) . . . 264

Limitation--Sales tax--Rectification of mistake--Interest for failure to deposit tax every month not levied in course of assessment--Notice issued and order for levy of interest passed pursuant to audit after two years--Is an order of rectification of assessment--Barred by limitation--Gujarat Sales Tax Act, 1969 (1 of 1970), ss. 47(4A), 72.--Commissioner of Sales Tax v. Yashvijay & Co. (Guj) . . . 339

----Value added tax--Appeal--Condonation of delay--Principles stated.--Indian Oil Corporation Ltd. v. State of Haryana (P&H) . . . 360

----Value added tax--Appellate Tribunal--Appeal--Condonation of delay--Appeal filed before Tribunal with application for condonation of delay of 155 days--Plea that delay due to different levels of decision making authorities regarding filing appeal--Constitutes "sufficient cause"--Tribunal not justified in not condoning delay--Haryana Value Added Tax Act (6 of 2003)--Limitation Act (36 of 1963), s. 5.--Indian Oil Corporation Ltd. v. State of Haryana (P&H) . . . 360

Manufacturer--See Service tax (Guj) . . . 365

Natural justice--Value added tax--Reassessment--Commissioner--Provision empowering designated officer to reassess under-assessment of tax with prior approval of Commissioner--Dealer provided with opportunity of hearing when designated officer after getting approval from Commissioner proceeded to amend assessment order--Provisions not unreasonable, unconstitutional or ultra vires--Valid--Punjab Value Added Tax Act (8 of 2005), s. 29(7)--Constitution of India, art. 19(1)(g).--Surbhi Armouring Incorporation v. State of Punjab (P&H) . . . 257

Penalty--Sales tax--Check-post--Check-post officer--Jurisdiction--Check-post officer not competent to go into nature of transaction--Cannot assume jurisdiction of assessing officer and determine whether branch transfer or inter-State sale--Drivers of vehicles carrying with them some more document other than relevant ones showing stock transfer--Levy of penalty on ground goods sold in course of inter-State sales and attempt to evade tax--Not justified--Punjab General Sales tax Act (46 of 1948), s. 14B.--State of Punjab v. Shreyans Industries Ltd. (P&H) . . . 264

----Sales tax--Forfeiture--Excess collection of sums as tax--Forfeiture and penalty only in case of unauthorised collection of sums by way of tax on exempt goods--Not where goods taxable--Oil companies not specified at relevant point of time--Purchases therefrom not purchase from oil companies--No question of exemption of tax and tax paid on purchases--Sales tax on sales collected in excess and excess amount so collected remitted to Government--No contravention since goods not exempted --Order of forfeiture and penalty liable to be set aside--Assam General Sales Tax Act (12 of 1993), ss. 8, Expln. 2, 65A--Assam General Sales Tax Rules, 1993, r. 12.--Indian Oil Corporation Ltd. v. State of Assam (Gauhati) . . . 343

Reassessment--Value added tax--Natural justice--Commissioner--Provision empowering designated officer to reassess under-assessment of tax with prior approval of Commissioner--Dealer provided with opportunity of hearing when designated officer after getting approval from Commissioner proceeded to amend assessment order--Provisions not unreasonable, unconstitutional or ultra vires--Valid--Punjab Value Added Tax Act (8 of 2005), s. 29(7)--Constitution of India, art. 19(1)(g).--Surbhi Armouring Incorporation v. State of Punjab (P&H) . . . 257

Recovery of tax--Sales tax--Company in liquidation--Recovery personally from director--Not permissible in absence of specific provision in statute--Recovery of dues of company of State sales tax and value added tax not permissible from director--No proceedings taken specifically for recovery of Central sales tax under Central Sales Tax Act--No notice issued to director prior to recovery of sum for which director stood guarantee--Summons quashed--Haryana General Sales Tax Act (20 of 1973)--Haryana Value Added Tax Act (6 of 2003)--Central Sales Tax Act (74 of 1956), ss. 8(5), 18--Notification dated September 4, 1995.--Subhash Goyal v. State of Haryana (P&H) . . . 310

Rectification of mistake--Sales tax--Limitation--Interest for failure to deposit tax every month not levied in course of assessment--Notice issued and order for levy of interest passed pursuant to audit after two years--Is an order of rectification of assessment--Barred by limitation--Gujarat Sales Tax Act, 1969 (1 of 1970), ss. 47(4A), 72.--Commissioner of Sales Tax v. Yashvijay & Co. (Guj) . . . 339

Refund--Sales tax--Tripura Incentive Scheme of 2002--Small-scale unit--Purchase of raw materials for manufacture of goods in State--Writ petition claiming refund of tax paid on purchase of aluminium wire used as raw material by unit in terms of promise held out to it in scheme--Complete scheme not placed before court--That petitioner took some steps pursuant to promise in scheme causing financial hardship not alleged--Benefit only in respect of goods notified under rule 37(3)--No notification in respect of aluminium wire--Petition lacked merit--Tripura Sales Tax Act (11 of 1976), s. 28--Tripura Sales Tax Rules, 1976, r. 37.--Arundhati Cables v. State of Tripura (Tripura) . . . 351

Registered dealer--See Penalty (Gauhati) . . . 343

Search and seizure--Value added tax--Check-post--Evasion of tax--Seizure of goods--General principles--Last resort--Seizure for undervaluation--Not proper--Auction of goods--Conditions precedent--Notice to consignor or consignee--Minimum of 15 days to be given in public notice of auction--Sanction of Commissioner--Cannot be of Superintendent--No definite finding that goods undervalued--No notice issued to dealer--No material to indicate sanction of Commissioner--Notice of auction published only in one newspaper giving three days notice--Fixation of reserve price at three times tax payable on price estimated by seizing officer plus five per cent. for overhead cost--Reserve price lower than price declared by dealer--Arbitrary, especially when goods seized for having been undervalued--Auction unconscionable--Tax to be calculated only on sum fetched at sale--Tripura Value Added Tax Act, 2004 (1 of 2005), s. 67--Tripura Value Added Tax Rules, 2005, r. 71(5).--Ruchi Soya Industries Ltd. v. State of Tripura (Tripura) . . . 273

Service tax--Cenvat credit--Goods transport agency--Transport service used by manufacturer for transportation of finished goods from place of removal up to premises of purchaser--Is input service--Cenvat Credit Rules, 2004, r. 2(l).--Commissioner v. Ellora Time Ltd. (Guj) . . . 365

Value added tax--See Appeal (P&H) . . . 360

----See Reassessment (P&H) . . . 257

----See Search and seizure (Tripura) . . . 273

VAT Tribunal--See Appeal (P&H) . . . 360

Writs under Constitution--Sales tax--Refund--Tripura Incentive Scheme of 2002--Small-scale unit--Purchase of raw materials for manufacture of goods in State--Writ petition claiming refund of tax paid on purchase of aluminium wire used as raw material by unit in terms of promise held out to it in scheme--Complete scheme not placed before court--That petitioner took some steps pursuant to promise in scheme causing financial hardship not alleged--Benefit only in respect of goods notified under rule 37(3)--No notification in respect of aluminium wire--Petition lacked merit--Tripura Sales Tax Act (11 of 1976), s. 28--Tripura Sales Tax Rules, 1976, r. 37.--Arundhati Cables v. State of Tripura (Tripura) . . . 351

CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL

Banking and other financial services--Service tax--Bill discounting facility--Interest received by assessee-bank in providing bill discounting facility--Not excludible from value of taxable service treating it as interest on loan for period prior to April 18, 2006 and under rule 6(2) of Service Tax (Determination of Value) Rules, 2006--As per notification interest or discount, in connection with overdraft facility, cash credit facility, or bill discounting facility, exempt under section 66--Hence interest received for rendering bill discounting facility service not includible in taxable value--"As the case may be", meaning of--Finance Act (32 of 1994), ss. 65(12), 66, 67--Service Tax (Determination of Value) Rules, 2006, r. 6(2)--Notification No. 29/2004-ST dated September 22, 2004.--UCO Bank v. Commissioner of Service Tax (CESTAT-Kolkata) . . . 317

----See also Service tax (CESTAT-Kolkata) . . . 317

Business auxiliary service--See Service tax (CESTAT-New Delhi) . . . 288, 292

Cenvat credit--Service tax--Taxable and exempted service--Assessee engaged in providing banking and other financial services--Overdraft facility and cash credit facility mentioned under clause (ix) of banking and financial services exempted from service tax under section 66--Inclusion of value of overdraft facility and cash credit facility services in computing Cenvat credit attributable to input services used in exempted services as laid down under rule 6(3A)(c)--Justified--Finance Act (32 of 1994), ss. 65(12), 66--Cenvat Credit Rules, 2004, r. 6(3A)(c).--UCO Bank v. Commissioner of Service Tax (CESTAT-Kolkata) . . . 317

Exempted services--See Service tax (CESTAT-Kolkata) . . . 317

Export of service--Service tax--Business auxiliary service--Appellant identifying prospective customers in India for overseas corporate entity's modular furniture business and providing list of prospective customers on regular basis--Consideration received in convertible foreign exchange--Service consumed by overseas corporate entity--Is export of services--Not taxable--Finance Act (32 of 1994)--Export of Services Rules, 2005.--Alpine Modular Interiors (P) Ltd. v. Commissioner of Service Tax (Adjudication) (CESTAT-New Delhi) . . . 288

----Service tax--Business auxiliary service--Limitation--Penalty--For period prior to May 2006--Computer reservation system, software and data base comprising information relating to airlines and other travel service providers maintained by foreign entities--Assessees (100 per cent. export oriented units) providing access to relevant segments of travel related data in computer reservation system to local travel agents by computer data processing--Assessees processing information/data generated by their accredited travel agents in India and uploading same to overseas located computer systems--For consideration received from foreign entities in convertible foreign exchange--Activities amounted to promotion or marketing of computer reservation system services of overseas entities through computer data processing--Computer data processing falling outside business auxiliary service, in view of exclusionary clause in Explanation to section 65(19)--Is export of service--No liability to tax--From July 1, 2003 (when business auxiliary service introduced) till introduction of 2005 Rules--Service exported for consideration in convertible foreign exchange also exempted by relevant notifications and clarification--On facts extended period of limitation not invocable--Penalty under section 78 not warranted--Finance Act (32 of 1994), s. 65(19), Expln.--Export of Services Rules, 2005--Notification No. 6/1999-ST dated April 9, 1999--Notification No. 21/2003-ST dated November 20, 2003, and clarification issued in Board Circular No. 56/5/2003-ST, dated April 25, 2003.--Acquire Services Pvt. Limited v. Commissioner of Service Tax (CESTAT-New Delhi) . . . 292

Limitation--See Service tax (CESTAT-New Delhi) . . . 292

Penalty--See Service tax (CESTAT-New Delhi) . . . 292

Practice--Precedent--Tribunal--Executive branch and adjudicator at lower level bound by decisions of Tribunal.--Alpine Modular Interiors (P) Ltd. v. Commissioner of Service Tax (Adjudication) (CESTAT-New Delhi) . . . 288

Precedent--Practice--Tribunal--Executive branch and adjudicator at lower level bound by decisions of Tribunal.--Alpine Modular Interiors (P) Ltd. v. Commissioner of Service Tax (Adjudication) (CESTAT-New Delhi) . . . 288

Service tax--Banking and other financial services--Bill discounting facility--Interest received by assessee-bank in providing bill discounting facility--Not excludible from value of taxable service treating it as interest on loan for period prior to April 18, 2006 and under rule 6(2) of Service Tax (Determination of Value) Rules, 2006--As per notification interest or discount, in connection with overdraft facility, cash credit facility, or bill discounting facility, exempt under section 66--Hence interest received for rendering bill discounting facility service not includible in taxable value--"As the case may be", meaning of--Finance Act (32 of 1994), ss. 65(12), 66, 67--Service Tax (Determination of Value) Rules, 2006, r. 6(2)--Notification No. 29/2004-ST dated September 22, 2004.--UCO Bank v. Commissioner of Service Tax (CESTAT-Kolkata) . . . 317

----Business auxiliary service--Appellant identifying prospective customers in India for overseas corporate entity's modular furniture business and providing list of prospective customers on regular basis--Consideration received in convertible foreign exchange --Service consumed by overseas corporate entity--Is export of services--Not taxable--Finance Act (32 of 1994)--Export of Services Rules, 2005.--Alpine Modular Interiors (P) Ltd. v. Commissioner of Service Tax (Adjudication) (CESTAT-New Delhi) . . . 288

----Business auxiliary service--Export of service--Limitation--Penalty--For period prior to May 2006--Computer reservation system, software and data base comprising information relating to airlines and other travel service providers maintained by foreign entities--Assessees (100 per cent. export oriented units) providing access to relevant segments of travel related data in computer reservation system to local travel agents by computer data processing--Assessees processing information/data generated by their accredited travel agents in India and uploading same to overseas located computer systems--For consideration received from foreign entities in convertible foreign exchange--Activities amounted to promotion or marketing of computer reservation system services of overseas entities through computer data processing--Computer data processing falling outside business auxiliary service, in view of exclusionary clause in Explanation to section 65(19)--Is export of service--No liability to tax--From July 1, 2003 (when business auxiliary service introduced) till introduction of 2005 Rules--Service exported for consideration in convertible foreign exchange also exempted by relevant notifications and clarification--On facts extended period of limitation not invocable--Penalty under section 78 not warranted--Finance Act (32 of 1994), s. 65(19), Expln.--Export of Services Rules, 2005--Notification No. 6/1999-ST dated April 9, 1999--Notification No. 21/2003-ST dated November 20, 2003, and clarification issued in Board Circular No. 56/5/2003-ST dated April 25, 2003.--Acquire Services Pvt. Limited v. Commissioner of Service Tax (CESTAT-New Delhi) . . . 292

----Cenvat credit--Taxable and exempted service--Assessee engaged in providing banking and other financial services--Overdraft facility and cash credit facility mentioned under clause (ix) of banking and financial services exempted from service tax under section 66--Inclusion of value of overdraft facility and cash credit facility services in computing Cenvat credit attributable to input services used in exempted services as laid down under rule 6(3A)(c)--Justified--Finance Act (32 of 1994), ss. 65(12), 66--Cenvat Credit Rules, 2004, r. 6(3A)(c).--UCO Bank v. Commissioner of Service Tax (CESTAT-Kolkata) . . . 317

Tribunal--See Practice (CESTAT-New Delhi) . . . 288

Value of taxable service--See Service tax (CESTAT-Kolkata) . . . 317

Words and phrases--"As the case may be", meaning of.--UCO Bank v. Commissioner of Service Tax (CESTAT-Kolkata) . . . 317


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