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PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
ST - As per Rule 6(3) of STR adjustment for excess service tax paid is only in respect of services which are not provided by service provider - adjustments in respect of volume discounts and other rebates is prima facie not covered - pre-deposit ordered: CESTAT

By TIOL News Service

MUMBAI, NOV 03, 2013: THE applicants are providing port service and paying Service Tax. They had suomotu adjusted the amounts in question by citing the provisions of Rule 6(3) of the Service Tax Rules, 1994.

The demand of Rs.1,64,01,668/-, interest and penaltiesis confirmed by the CCE, Raigad on the ground that the adjustment of the excess service tax paid is available only in respect of the taxable service which is not provided by the service provider and the amount has been refunded to the person from whom it was received . However, the applicants had adjusted the amounts which are not in respect of the services not provided .

Before the CESTAT, the appellant submitted that in respect of the amount of adjustment, verification was conducted by the Deputy Commissioner of Service Tax; that as the applicants had refunded the amounts of service tax collected from the service recipient by way of credit notes, therefore, the adjustment is permissible and the demand is not sustainable.

The Revenue representative relied upon the provisions of Rule 6(3) of the STR, 1994 and submitted that the adjustment can be done in respect of the service which is not provided by the service provider and the amount of service tax has been refunded to the person from whom it was received. In the present case the applicants were giving some volume discounts and other rebates and the ST paid on such amounts were adjusted against the payment of service tax for subsequent period, which is not permissible and hence the demand is rightly made.

The Bench extracted the contents of Rule 6(3) of the STR, 1994 and observed -

“…In the present case, the adjustments are made in respect of volume discounts and other rebates as noted in para 15.2 of the adjudication order.

6. As per the provisions of Rule 6(3) of the Rules, the adjustment in respect of excess service tax paid is only in respect of the services which are not provided by the service provider. In the present case, the adjustment is not in respect of services which are not provided rather it is by way of discounts and rebates. In view of this, prima facie the applicants have not made out a case for total waiver of service tax….”

In fine, the applicant was directed to deposit an amount of Rs.1,00,00,000/- and report compliance.

( See 2013-TIOL-1633-CESTAT-MUM)


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