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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 - Tour Operator Service - Activity of tour is undertaken in Srinagar and provisions of FA, 1994 are not applicable to J&K - applicant has a strong case in favour - pre-deposit waived and stay granted: CESTAT

By TIOL News Service

MUMBAI, DEC 25, 2013 : AN application was filed seeking waiver of pre-deposit of service tax of Rs.22,98,747/- with interest. The demand is confirmed by the CST (Adjudication), Mumbai on the ground that the applicant has provided taxable service of tour operator.

It is submitted by the applicant that the service is provided in Jammu & Kashmir and the provisions of the Finance Act, 1994 are not applicable to the State of Jammu & Kashmir. The applicant relied upon the itinerary which showed that the tour is Ex-Srinagar and the air rates are not included in the tour cost. Inasmuch as the demand is not sustainable, the applicant submitted.

The Revenue representative relied upon the Board circular dated 26.11.2007 to submit that the service provider and the service recipient are outside Jammu & Kashmir, therefore, liable to service tax.

The Bench held -

"4. We find that as per the brochures, the tour is Ex-Srinagar. The activity of tour is undertaken in Srinagar and the provisions of the Finance Act are not applicable to Jammu & Kashmir. Therefore, the applicant has a strong case in their favour. Pre-deposit of the dues is waived and recovery of the same is stayed during the pendency of the appeal. Stay petition allowed."

In passing : Perhaps, the Board Circular referred to is the Delhi Service Tax Commissionerate communication dated 26/11/2007 which reads -

"The doubt was raised if the services provided by a Delhi based company for conduction of topographical survey work of project area in Jammu and Kashmir is chargeable to Service Tax, if the contract for the construction of the project in the state of J & K was awarded to Mumbai based company.

It was clarified by the Board in consultation of the Ministry of Law that even if the object of service is in the state of J & K but as the service provider and the service receiver are outside the State of J & K, the Service Tax shall be chargeable from the service provider."

Also read DDT 2247 dated December 9, 2013.

(See 2013-TIOL-1905-CESTAT-MUM)


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