2019-TIOL-62-HC-MAD-VAT

Sterling And Wilson Pvt Ltd Vs Assistant Commissioner (CT)

Whether AO is bound to redo the revised assessment of the dealer after affording an opportunity of personal hearing, if he is so directed by the Writ Court - YES: HC

-Case remanded : MADRAS HIGH COURT

2019-TIOL-03-CSTAA-CST

Vinayaka Alloys Ltd Vs State of Tamil Nadu

Whether transfer of goods to sister unit & making claims of stock transfer can point towards intent to suppress facts & evade payment of duty - YES: Sales Tax Tribunal

- Assessee's appeal dismissed : CENTRAL SALES TAX APPELLATE AUTHORITY

2019-TIOL-02-CSTAA-CST

Steel Authority of India Ltd Vs State of Orissa

Whether stay on recovery of duty demand can be granted, where the assessee pre-deposits a substantial part of the duty demanded & where any further payment would result in payment of excess amount of duty - YES: Sales Tax Tribunal

- Assessee's applications allowed : CENTRAL SALES TAX APPELLATE AUTHORITY

2019-TIOL-01-CSTAA-CST

State of Tamil Nadu Vs Ganapathy Smelters Ltd

Whether delay in filing appeal can be condoned where such delay is caused due to administrative exigencies & where no wilful suppression or concealment of facts is noted - YES: Sales Tax Tribunal

- Revenue's application allowed : CENTRAL SALES TAX APPELLATE AUTHORITY

SERVICE TAX

2019-TIOL-66-CESTAT-MUM

Ayush Marketing Vs CCE

ST - Conclusion of the Commissioner(A) that Sound systems, LCD projector etc. supplied on rent by the appellant for use in various events cannot come within the scope of "Convention service" but correctly falls under the scope of ‘Supply of tangible goods service' cannot be considered to be improper - assessee although registered for other services of erection, commissioning, installation and paying service tax thereon did not disclose the aforesaid service, therefore, extended period of limitation is rightly invokable - in absence of any contrary evidence placed by the appellant rebutting the said findings of the Commissioner(A), the impugned order is upheld and the appeal is dismissed: CESTAT [para 5, 6]

- Appeal dismissed: MUMBAI CESTAT

2019-TIOL-65-CESTAT-DEL

National Internet Exchange of India Vs CST

ST - Assessee is a not for profit company and is engaged in Domain Name Business in India i.e. for providing efficient interconnectivity of internet in India and for setting up of internet domain name operations and related activities - For the purpose, assessee has been entrusted by Department of Information and Technology with the responsibility of setting up registry for '.in' country got top level domain name (TLD) and for operating as registry for '.in' domain name in India - The moot question for adjudication appears to be as to whether the registrar accreditation agreement is a mere agreement between assessee and its registrar for accreditation or it actually is in agreement for rendering franchise services by assessee to its registrars - The perusal of the agreement makes one thing abundantly clear that not even once the word "franchise" or "franchisor" has been used - The agreement gives the registrar no right, power or authority to operate or manage '.in' registry - The assessee and its registrars have their separately assigned roles - Registrar are accredited for discharging such particular functions of assessee for which they are accredited by them - Otherwise also, in today's world of international connectivity, database of all domain name is required to be maintained - There is a need to link a particular domain name with the particular computer and the internet protocol - The registrars are the entities which contract with registered name holders and the registry and collects registration data about registry name holders and submit the same to the registry for entering in the database maintained by the registry - It becomes abundantly clear that both registry and registrars are independent entities operating on principle-toprinciple basis - The emphasis of assessee on agreement between ICANN, the corresponding registry at international level seems appealable in view of case of Direct International Solutions Pvt. Ltd. - 2014-TIOL-1505-CESTAT-MUM is opined squarely applicable - Delhi High Court in another case Delhi International Airport Pvt. Ltd. - 2017-TIOL-394-HC-DEL-ST has held that for a transaction to be taxable under Section 65(105) (zze), it is necessary that the services should be provided by assessee but the agreement makes it clear that there is no provision of services being provided - Thus, the original Adjudicating Authority has miserably erred while holding an arrangement of accreditation as that of providing franchisee services - The levy confirmed vide the Order under challenge is therefore set aside - There seems no ground available with Department to invoke extended period of limitation while serving the SCN - The imposition of penalty on the settled ground are also therefore set aside: CESTAT

- Appeal allowed: DELHI CESTAT

CENTRAL EXCISE

2019-TIOL-64-CESTAT-DEL

BMD Pvt Ltd Vs CCE & ST

CX - During audit of records of assessee, it was observed that assessee have irregularly availed cenvat credit of service tax on ineligible input services including hazardous handling service, operation and maintenance of wind mill, membership of clubs, group insurance of staff, life insurance of directors and employees for period January, 2011 to March, 2015 on the ground that said services were not used in relation to manufacture of final products - It is in the interest of justice to remand this matter to the Adjudicating Authority because if the power generated with wind mill is exclusively used in relation to the manufacturing activity, then it is squarely covered within the definition of 'input service' - Otherwise the assessee has to pay cenvat credit availed by them on operation and maintenance of wind mill, if any excess power generated by them have been sold to the Electricity Board: CESTAT

- Matter remanded: DELHI CESTAT

2019-TIOL-63-CESTAT-BANG

Binani Zinc Ltd Vs CC

CX - The assessee is a manufacturer of Zinc, Sulphuric Acid and Cadmium from Zinc concentrate and availed MODVAT credit of duty paid on inputs and capital goods used in manufacturing process - Sulphur dioxide, which is an atmospheric pollutant was produced during manufacturing process was converted to Sulphuric acid with the help of catalyst ‘Vanadium Pentaoxide' - A SCN was issued proposing to demand duty at 8% of value of Sulphuric acid cleared without payment of duty for period from November 1997 to July 1999 - After the decision of Tribunal directing the assessee to reverse the entire credit in respect of Vanadium Pentaoxide, assessee reversed the entire credit on Vanadium Pentaoxide - Further, the High Court has also not disturbed the said order of Tribunal - Once the assessee has reversed entire credit as per the direction of Tribunal then there remains no demand against the assessee - The impugned order is not sustainable in law: CESTAT

- Appeal allowed: BANGALORE CESTAT

CUSTOMS