Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes *   GST lifted oil demand on higher vehicle sales, says report *   Moody’s gives thumbs up to GST, demonetisation  *   Pass on rate cut benefits immediately, companies tell traders *   Focus will now be on simplifying forms, IT processes under GST: Sushil Modi *  Tax rates lowered on consumer goods,only luxury goods taxed @ 28% *   Businesses can revise GST transition claim form now *  Multiplex owners in UP demand clarity on refund as tax exemptions go away after GST *   GST compliance: A case of much ado about nothing *  PM hints more relief for traders & businesses to ease GST compliance burden *  Infosys deploys more people in states to ease GSTN load *   Further reforms are needed for the GST to succeed *   GST impact! Massive stock clearance discounts on apparels, gadgets likely in December *  Kerala HC releases Detained Goods since State has No Power to make Rules to regulate Inter-State movement of Goods under GST *  Infosys is to blame for GST Network glitches, say government officials *   Publishers versus authors: Who will pay GST on royalty? *   कपड़ा निर्यातकों ने कहा, जीएसटी के कारण भारत से शिपमेंट में आ सकती है भारी कमी *   Tax professionals protest over GST returns filing in Gujarat *  Publishers versus authors: Who will pay GST on royalty? *   Pilot Implementation of Paperless Processing under SWIFT *   Anti-dumping duty levied on the imports of " Color Coated/ Pre-Painted flat products of alloy or non-alloy steel " s *   Anti-dumping duty levied on the imports of "Wire Rod of Alloy or Non- Alloy Steel "   *   Exemption on goods imported by EOUs from integrated tax and compensation cess   *   Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver  *   Appointment of Common Adjudicating Authority by DGRI  *   Amendment in various Customs exemption notifications to exempt Integrated Tax/Cess on import of goods under AA/EPCG schemes  *   BCD and IGST rates on certain goods prescribed  
Subject News *   Vide the notification 71/2017-Central Tax ,dt. 29-12-2017, the Central government seeks to extend the time limit for filing FORM GSTR-1 in relation to outward taxable supplies for taxpayers having aggregate turnover upto  Rs. 1.5 Crore for the Quarter JUL-SEPT 2017 to 10th  January,2018. *   Vide the notification 72/2017-Central Tax ,dt. 29-12-2017, the Central government seeks to extend the time limit for filing FORM GSTR-1 in relation to outward taxable supplies for taxpayers having aggregate turnover more than  Rs. 1.5 Crore for the month JUL-NOV  to 10th  January,2018.   *   Vide the notification 73/2017-Central Tax ,dt. 29-12-2017the Central Government seeks to waive the late fees payable by registered person for failure in filing of FORM GSTR-4.   *   Vide the notification 74/2017-Central Tax ,dt. 29-12-2017 the government seeks to notify February 1, 2018 as the date from which the provisions of E-Way Bill Rules shall come into force. *     Vide the notification 75/2017-Central Tax ,dt. 29-12-2017 the Central Government seeks to make amendments in  Central Goods and Services Tax Rules, 2017. *   Inter - State e - way Bill to be made compulsory from 1st of February, 2018 ; system to be ready by 16th of January, 2018 *  Customs (Furnishing of Information) Rules, 2017 introduced *  GST network simplifies return filing process *   State FMs speak on GST implementation, bringing petrol under its ambit *  Shaky Budget in offing? *   GST woes dominate pre-Budget consultations to Arun Jaitley from stakeholders *   Anti-profiteering: Filing complaints against firms not an easy task *   Putting electricity in GST *   12%, 18% GST rates can be merged to new slab *  Inter state movement of rigs,tools and spares, and all goods on wheels (like cranes) would not attract IGST *   GST rate on terricotta idols is NIL rated *   All taxpayers  exempt from payment of tax on advances received in case of supply of goods *   Suppliers of services through an e-commerce platform are exempted from obtaining compulsory registration *   Refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics vide cicular no 18/2017 GST dt 16.11.17 *   Govt tells companies to pass on GST gains immediately *   Anti-profiteering authority to be set up under GST *   CBEC prescribes procedure for manual filing and processing of refund claims for zero rated supplies *  Changes in Tax rate of permanent transfer of Intellectual Property *  GST on Services by way of admission to protected monuments shall be exempted. *  Relevant Notification to be issued shortly, so as to be made available from 15th of November'17 *  Late fee payable for those where a tax liability arises will be Rs. 50/- per day. *  Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed *  Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. *  Restaurants in hotel premises having room tariff of Rs 7500 and above per day (even for a single room) will attract GST of 18% with full ITC. *  Job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from registration, shall be reduced to 5% with full ITC.  

Comments

Print   |    |  Comment

PJ/Case Law/2016-17/3444

Can service tax credit be disallowed if bills were hand written or that service provider had not remitted the amount collected to the account of Central Government?

 Case:-  PARKER MARKWELL INDUS. LTD. Versus  C.C., C. E. & S.T., HYDERABAD-I

Citation:- 2017 (48) S.T.R. 59 (Tri. - Hyd.)

Brief Facts:-   The appeal was filed challenging the disallowance of credit of service tax paid on inputs services on the following ground :
i.          That the invoices were hand written bills and that they do not contain all the details as required under Rule 4(A) of Service Tax Rules, 1994.
ii.          That the service provider, Shri C. Suresh did not remit the service tax collected from the appellant to the Central Government.
On perusal of the impugned order, it was seen that the Original Authority after analyzing the defect of the invoices to be hand written bills had allowed credit of Rs. 33,33,870/- on the ground that the Service provider Shri C. Suresh, had remitted the said amount to Central Government. An amount of Rs. 9,73,038/- had been denied vaguely stating that the invoices do not contain necessary particulars. The Commissioner (Appeals) had upheld the disallowance of Rs. 9,73,038/- stating that there was no evidence of payment produced by the appellant.

Appellant’s Contention:-  Ld. Counsel Shri M. Karthikeyan submitted that in the show cause notice the department had not alleged as to what was the deficiency in the hand written bills, apart from the fact that these bills were hand written bills. He also argued that credit could not be disallowed for the reason that the bills were hand written or that service provider had not remitted the amount collected to the account of Central Government.

Respondent’s Contention:- The ld. AR Sri Nagaraj Naik strongly defended the findings in the impugned order. He argued that the adjudicating authority had allowed an amount of Rs. 33,33,870/- on being satisfied that the service provider Sri C. Suresh had paid the amount in the account of the Central Government. He also argued that the hand written bills did not contain the essential details. Therefore, the disallowance was legal and proper.

Reasoning of Judgment:- It was seen from records that the service provider Shri C. Suresh had paid Rs. 33,33,870/- to Central Government and credit of this amount had been allowed by both authorities below even though the invoices were hand written. The show cause notice did not allege what were the discrepancies in the invoices. Therefore, it was evident that the only reason for which the credit of Rs. 9,73,038/- had been disallowed was that the service provider Sri C. Suresh had not paid the said amount collected to the account of revenue. This definitely could not be a ground to deny the credit to the appellant who had paid service tax and produced the invoices/hand written bills. Though it was stated in the impugned order that the hand written bills do not contain essential details, it was not stated as to what were the essential details in terms of Rule 4(A) of Service Tax Rules, 1994 that was required to make the invoices in order.
 
 
Appeal allowed.

Comment:The gist of the case was that service tax credit cannot be disallowed on the basis that the bills are hand written if such bills contain all the essential details in terms of Rule 4(A) of Service Tax Rules, 1994.
Also, service tax credit cannot be denied on the grounds that the service provider has not paid the amount so collected to the account of revenue to the receiver of service who has paid service tax and produced the invoices/hand written bills.

Prepared by- Alakh Bhandari
 
 
 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com