SIGN IN SUBSCRIBE

News Update

Sale of building constructed on leasehold land - GST implicationI-T - If assessee is not charging VAT paid on purchase of goods & services to its P&L account i.e., not claiming it as expenditure, there is no requirement to treat refund of such VAT as income: ITATBengal Governor restricts entry of State FM and local police into Raj BhawanI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATCops flatten camps of protesting students at Columbia UnivI-T - No additions are permitted on account of bogus purchases, if evidence submitted on purchase going into export and further details provided of sellers remaining uncontroverted: ITATTurkey stops all trades with Israel over GazaI-T- Provisions of Section 56(2)(vii)(a) cannot be invoked, where a necessary condition of the money received without consideration by assessee, has not been fulfilled: ITATGirl students advised by Pak college to keep away from political eventsI-T- As per settled position in law, cooperative housing society can claim deduction u/s 80P, if interest is earned on deposit of own funds in nationalised banks: ITATApple reports lower revenue despite good start of the yearI-T- Since difference in valuation is minor, considering specific exclusion provision benefit is granted to assessee : ITATHome-grown tech of thermal camera transferred to IndustryI-T - Presumption u/s 292C would apply only to person proceeded u/s 153A and not for assessee u/s 153C: ITATECI asks parties to cease registering voters for beneficiary-oriented schemes under guise of surveysST - Since Department itself admits that service carried out by appellant is that of 'Mining Services' w.e.f. 01.06.2007, thus demand for earlier period has been made only to fasten excess Service Tax demand on appellant which cannot sustain: CESTATICG rescues fisherman with head injury onboard IFB St. Francis off the Gujarat coastCX - When physical stock verification carried out by Officers was not fool proof and there were anomalies, benefit of doubt should be extended to assessee, duty demand confirmed on alleged clandestine removal is not sustainable: CESTAT
 
ST - Services of Event Management, Staff relocation, Staff picnic are not Input services: CESTAT

By TIOL News Service

MUMBAI, MAY 31, 2017: REVENUE is in appeal when the appeal was posted for hearing, the AR sought from the Bench more time to prepare the arguments on the ground that the case file had been had been handed to him only a day before.

The Bench did not find this a good reason to grant adjournment and, therefore, did not accede to the request.

The respondent assessee had claimed CENVAT Credit on the following services viz. Rent-a-Cab service, Outdoor catering service,Event Management services,Architect Services,Warehousing charges, Cargo handling services and Staff picnic.

The plea of the assessee and the observations of the Bench on the admissibility or otherwise of CENVAT credit on the various services are summed up as below –

+ Rent-a-cab Service: Cars were hired for the purpose of transportation of the employees to the place of work, which is integrally connected with output services provided since the appellant is engaged in provision of BPO services for the Citibank. Therefore, it may not be unreasonable to allow the CENVAT Credit on this count.[Circular No. 120/01/2010-ST dated 19.1.2010 relied upon]

+ Outdoor catering services: This service is also covered by the Circular in para 3.1.1 thereof. Therefore, there is no disagreement to the mandate of Circular. Accordingly, the appellant succeeds on this count also.

+ Event Management service: Appellant submission is that event management was must to motivate the employees and boost their morale; that these services are availed in relation to the business which helps employees in improving interpersonal skills, rejuvenate, increase efficiency and to improve their performance in the business.

However, integral connection of such services with output services is failed to be established . When nexus of input service with output service is not proved, then there should not be grant of relief at the interest of justice. Accordingly, the appellant loses on this count, for which appeal on such count is dismissed.

+ Warehousing services: The appellant brings out that it is responsible to store vehicles taken possession from customers.

This has no nexus to the provision of service, for which there shall be disallowance of the CENVAT Credit.

+ Architect's services (Rainwater harvesting):Appellant says that this service was used in construction of the tank to be used for rainwater harve sting as mandated by BMC Regulations.

It is agreed that the object of the statute should not be frustrated by not allowing the CENVAT Credit. Therefore, the appellant gets relief on this count also.

+ Staff relocation/Cargo Handling: Appellant says that this service is to make relocation of employees from one location to other.

We do not find any integral connection of this service to output service. Therefore, the appellant loses on this count.

+ Staff picnic: There is no reasoning to allow credit in absence of integral connection to the output services.

The appeal was partly allowed as above.

(See 2017-TIOL-1811-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST