Jurisprudentiol - Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Though storage tanks have been specified under capital goods, only such storage tanks which are ‘goods' can fall within definition of capital goods - steel items which have gone into manufacture cannot be treated as ‘input' for manufacture of capital goods - Pre-deposit ordered of Rs.35 lakhs: CESTAT

THE appellant are manufacturers of Cement and Clinker. Scrutiny of the records revealed that they availed CENVAT credit amounting to Rs.61,44,464/- in respect of steel items such as MS Plates, angles, channels, beams etc. used in the construction of storage tanks/silo and chimney which are in the nature of immovable property.

A show-cause notice was issued for denying the aforesaid CENVAT credit. The demand was confirmed.

Service Tax

Since appellants have paid service tax liability under category of BAS and Renting of Immovable Property services, they are liable to pay interest also: CESTAT

THE appellants were operating as Multi Service Operator (MSO) in TV cable operation business as a commission agent and distributor of M/s Win Cable & Datacom Pvt. Ltd. by retransmitting TV signals to various cable subscribers. For these services, they were earning commission from the signal supplier on which they were not paying the service tax.

Since the activity falls under the category of ‘Cable Operators Service', a show-cause notice was issued for recovery of service tax and also for commission received from their signal supplier under the category of ‘Business Auxiliary Service'. There was also a proposal to demand of service tax on ‘Renting of Immovable Property Service' against the appellants. The show-cause notice was adjudicated and all the demands were confirmed by the Commissioner of Service Tax, Mumbai-II.

See our columns Tomorrow for the judgements