Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver   *   Imposition of anti dumping duty "Ammonium Nitrate"originating in exported from Russia, Indonesia, Georgia and Iran *   Exemption to a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration granted  *   Exemption from registration to job-workers making inter-State supply of services to a registered person granted *  The notification amends the rates of compensation cess on various motor vehicles *   Clarifcation for classification and GST rate on lottery *   Directions to Bank regarding export to Algeria *   Implementation of Notification No. 19 dated 5.8.2017 *   Enlistment of Agricultural and Processed Food Products Export Development Authority (APEDA) under Appendix 2C & 2E *   Extension in last date of  Export of preferential quota sugar to USA under TRQ quota *   Correction / Amendments in Table 2 of Appendix 3B Foreign Trade Policy 2015-20 *   Proformae for submission of applications for export of Red sanders wood and import of sandalwood notified *   Amendment in import policy of raw sugar *   Revision in Policy condition no 2 to Chapter 95 of ITC(HS), 2017 *   Clarification on difficulties related to recent amendments in Customs Act, 1962. *   Implementation of electronic sealing for containers by exporters *   Rate of exchange of conversion of the foreign currency with effect from 08.09. 2017 {See notification no 84/2017-Cus (NT),dt. 07.09.2017 in What’s new} *   Jurisdiction of customs officers for the purpose of audit defined {See notification no 85/2017-Cus (NT),dt. 07.09.2017 in What’s new} *   GST Workshop for babus held *   GST cess hike on luxury cars approved by cabinet *   Punjab Govt unable to pay salary to its employees *   Narendra Modi Proposes GST Registration for small traders. *   Govt restricts imports of gold, silver from South Korea  *   West Bengal Sweetmeat Makers go on Hunger-strike Against GST *   Appointment of officers as the Principal Chief Commissioners of Customs or Chief Commissioners of Customs and allotted their jurisdiction *   Amendment in Para 4.32(i) of chapter 4 and in para 6.01 (a) of chapter 6 of the Foreign Trade Policy 2015-20 *   Supply of essential commodities to the Republic of Maldives during 2017-18 *   Rate of exchange of conversion of the foreign currency with effect from 18th August, 2017 notified  *   Classes of persons who shall pay customs duty electronically notified *   Change in AIRs of Duty Drawback on Gold Jewellery, Silver Jewellery and Silver Articles 
Subject News *   Extension in the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017 *   Seventh amendment to the CGST Rules, 2017 *   Notifying section 51 of the CGST Act, 2017 for TDS *   Granting exemption from registration to a casual taxable person making taxable supplies of handicraft goods. *   Extension in the time limit for filing of GSTR-6. *   Extension in the time limit for filing of GSTR-1, GSTR-2 and GSTR-3. *   Amendment in certain customs notifications in pursuance to change made in Budget 2017-18. *   Exemptions to goods imported for organising FIFA under 17, world cup, 2017 *   Seeks to extend due dates for furnishing details/Returns for the months of July, 2017 and August, 2017. *   System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B *   Single point service Contact@DGFT eastablished. *   Imposition of CVD on imports of Certain Hot Rolled and Cold Rolled Stainless Steel Flat Products *   Reduction of BCD on raw sugar upto a quantity of 3 lakh MT {See notification no 74/2017-Cus,dt. 07-09-2017in What’s new} *  Seeks to continue anti-dumping inforce concerning imports of "Metronidazole" originating in exported from China PR *  seeks to levy definitive anti-dumping duty, on Castings for Wind Operated Electricity Generators *  seeks to impose anti-dumping duty on "Styrene Butadiene Rubber (SBR) *   What is Form GST TRAN-1 and when to File it *   How To Revise Invoice In GST *   Advertising space in print media to attract 5% GST *  Seeks to impose anti-dumping duty on " TexturedToughened (Tempered) Glass ", originating in or exported from China PR *  Seeks to amend notification No. 49/2012 - Customs (ADD) dated the 26th November,2012 to modify the amount of anti-dumping duty on import of Caustic Soda originating in or exported from Iran, Saudi Arabia and USA. *  Seeks to impose anti-dumping duty on the imports of "Sodium Nitrite" originating in or exported from China PR. *  Notification No.82/2017-Customs (N.T.) dated 24th August, 2017 *  Amendment in import policy of Beans of the species Vigna mungo (L.) Hepper or Vigna radiate (L.) Wilczek under Chapter 7 of the ITC (HS) 2017, Schedule â I (Import Policy) *  Amendment in Para 3.24(j) of Chapter-3 of FTP 2015-20 *  Amendment in Para 2.07 of Foreign Trade Policy 2015-2020. *  Amendment in import policy of gold and silver under Chapter 71 of the ITC(HS) 2017, Schedule -I (I) *   Seeks to modify the amount of anti-dumping duty on import of Caustic Soda originating in or exported from Iran, Saudi Arabia and USA *   Seeks to impose anti-dumping duty on the imports of "Sodium Nitrite" originating in or exported from China PR *   Amendment in the CGST Rules, 2017   

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