sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 5 tax saving mistakes millennials need to watch out for Income Tax Saving
 Tax-saving 101 for young earners
 4 important tax benefits of buying a house jointly
 5 best ways to invest and save tax at the last minute Last minute tax saving tips
 Pay your pending advance tax by 15 March
 2018 Tax Extensions: 12 Tips To Save You Money
 5 investment options other than Section 80C to save more Income Tax return filing
 Is it mandatory to link Aadhaar with income tax returns?
 Companies (Incorportation) 2nd Amendment Rule 2019
 Know how your family can help you save tax Filing income tax returns?
 Have You Fully Utilised Section 80C Income Tax Benefit? Here Are Key Things To Know

Adjustment of excess Service tax paid, against tax payable in following months cannot be denied merely on the grounds of non-compliance of procedure
December, 10th 2014

Dear Professional Colleague,

Adjustment of excess Service tax paid, against tax payable in following months cannot be denied merely on the grounds of non-compliance of procedure

We are sharing with you an important judgment of the Hon’ble CESTAT, New Delhi, in the case of Jubilant Organosys Ltd. Vs. Commissioner of Central Excise, Meerut [2014 (10) TMI 138 - CESTAT NEW DELHIon following issue:

Issue:

Whether the adjustment of excess Service Tax paid, against the tax payable in the following months, can be denied on the grounds of non-compliance of procedure?

Facts and background:

Jubilant Organosys Ltd. (“the Appellant”) adjusted excess payment of Service tax paid in some months against tax payable in following months and contended that adjustment was valid. However, the Appellant also filed refund claims of the excess payment of Service tax for dealing with the situation if adjustment is not allowed.

The Adjudicating Authority denied the adjustment of excess paid Service tax on the ground that the procedure prescribed under Rule 6(4A) of the Service Tax Rules, 1994 (“the Service Tax Rules”) has not been followed and accordingly confirmed the demand of Service tax against the Appellant. Thereafter, the Commissioner (Appeals) also upheld the demand confirmed by the Adjudicating Authority.

Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Delhi and while relying upon following judgments contended that the adjustment of Service tax paid in excess, in certain months towards the Service tax liability of the subsequent months cannot be denied on technical grounds:

  • CC, Patel and Associates (P.) Ltd. Vs. Union of India [2012 (10) TMI 835 - Gujarat High Court ];
  • Bank of Rajasthan Ltd. Vs. CCE [2010 (5) TMI 475 - CESTAT, NEW DELHI];
  • Gujarat NRE Coke Ltd. Vs. CCE [2012 (6) TMI 581 - CESTAT, AHMEDABAD];
  • BSNL Vs. CCE [2012 (6) TMI 299 - CESTAT, NEW DELHI]; and
  • Nirma Architects and Valuers Vs. CCE [2005 (10) TMI 4 - CESTAT - New Delhi]

Held:

The Hon’ble CESTAT, Delhi relying upon its very recent decision in judgment order No. 52863/2014 dated July 10, 2014 in the case of The General Manager, Telecom, BSNL Versus CCE, Raipur [2014 (10) TMI 419 - CESTAT NEW DELHI]A2Z TAXCORP LLP Tax and Law Practitioners Page 5 held that the matter is no longer res integra that the adjustment of Service tax paid in excess in certain months towards Service tax liability of subsequent months under Rule 6(4A) of the Service Tax Rules cannot be denied merely on technical grounds. Hence, adjustment was allowed to the Appellant and alternative refund claims were dismissed as infructuous.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

Thanks and Best Regards,

Bimal Jain

FCA, FCS, LLB, B.Com (Hons)

Flat No. 34B, Ground Floor, Pocket - 1,

Mayur Vihar, Phase - I,

Delhi – 110091, India

Desktel: +91-11-22757595/ 42427056

Mobile: +91 9810604563

 

Email: bimaljain@hotmail.com

Web: www.a2ztaxcorp.com

 

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions