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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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PJ/Case Laws/2011-12/1345

Cenvat Credit-mobiles and repair & maintenance of motor vehicles used by officers & employees for business purpose

Case:  M/s. FORCE MOTORS LTD. Vs. CCE, PUNE-I
 
Citation: 2008-TIOL-539-CESTAT-MUM
 
Issue:- Cenvat Credit on mobile phones and repair & maintenance charges incurred on motor vehicles provided to officers & employees for business related activities – admissibility of – Tribunal found force in assessee’s submissions – stay and waiver of pre-deposit granted.
 
Brief Facts:- Appellant were engaged in the manufacture of Tractors, Three wheelers motor vehicles parts etc. falling under Chapters 84 and 87 of the First Schedule to the Central Excise Tariff Act, 1985. They incurred repair & maintenance charges on motor vehicles. These vehicles were provided to appellant’s officers and employees. Credit was also availed on mobile phones.
 
The Adjudicating Authority confirmed the demand of interest and also service tax credit on mobile phones is also not allowed.
 
The Commissioner upheld the order of the Assistant Commissioner disallowing the service tax credit on the said services. However, the Commissioner (Appeal) reduced the penalty from Rs. 338161/-to Rs. 2000/-.
 
Appellant filed petition against this order. Application for waiver of pre-deposit and stay is filed.
 
Appellant’s Contention:- Appellant submitted that with regard to repair and maintenance of Motor Vehicles, appellant contended that the motor vehicles were used for activities pertaining to their business activities of manufacturing of vehicles, tractors and parts thereof as per the terms & conditions of the employment. The appellant maintained that the definition of ‘Input Service’ as per the Cenvat Credit Rule 2 (l) is inclusive. Therefore, it includes all services used in or in relation to manufacture of the final products whether directly or indirectly and clearance of final products from the place of removal.
 
Reasoning of Judgment:- With regard to service tax credit on mobile phones the Tribunal found that CBEC Circular no. 96/08/2007-ST dated 23.08.2007 clearly stated that service tax credit on mobile phones is admissible. Reliance was also placed on the case of Indian Rayon & Industries Ltd. reported in 2006 (4) STR79 (Tri-Mum.)
 
With regard to credit on maintenance or repair service of Motor Vehicles, the Tribunal found force in the argument of assessee that the definition of ‘Input Service’ is inclusive and not exhaustive. Therefore, it includes all services, used in manufacture of final products, whether directly or indirectly, and from the clearance of final products from the place of removal. Prima facie case made out for waiver of pre-deposit.
 
Decision:- Stay granted.
 
Comment:- This is good decision wherein the credit on repair and maintenance of motor vechile is allowed but under the new definition of “input service” does not allow the credit on such service.

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