2026-VIL-763-CESTAT-ALH-ST
  1. Home
  2. 2026-VIL-763-CESTAT-ALH-ST

SERVICE TAX CESTAT Cases

Service Tax - Exemption from Service Tax under Notification No.14/2012-ST dated 17.03.2012 for import of technology - Appellant, engaged in the manufacture of Colour Television sets, claimed exemption from service tax equivalent to the Research and Development (R&D) Cess paid on import of technology – Department denied the exemption on the ground that the appellant failed to pay the R&D Cess before payment of service tax as required under the notification - Whether the appellant is entitled to the exemption from service tax under Notification No.14/2012-ST dated 17.03.2012 for the import of technology – HELD - While the amended Notification No.47/2011-ST introduced specific temporal conditions requiring R&D cess to be paid before or contemporaneously with service tax payment for exemption to be available, the assessee had produced detailed charts with correct figures and relevant dates of payment of both R&D cess and service supported by proper documentary evidence demonstrating due compliance with the notification conditions. The assessee had paid R&D cess on royalty payable on technical knowhow and R&D fee amounts and thereafter availed exemption of equivalent amount of service tax on the strength of proper documents - Department was continuously aware of the assessee's working methodology as the assessee regularly filed statutory ST-3 returns, had entered into agreements with the foreign service provider since 2005 - The figures provided in ST-3 were provisional, and the actual figures were finalized upon payment of royalty after deduction of service tax, demonstrating that the assessee had actually paid more than the credit availed. The non-disclosure of adjustment of R&D cess before discharge of payment did not constitute suppression or misstatement of facts with intent to evade service tax, as the Department possessed complete knowledge and all relevant information was transparently maintained in statutory filings. Therefore, the extended period of limitation was not invokable, there was no evasion of service tax, and interest on the alleged tax amount was not leviable - The impugned orders passed by the Commissioner (Appeals) confirming the demand of service tax, interest, and penalty are set aside and quashed – The appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Appeal filed wrongly...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?