Select Service Tax Case laws applicable for CA final May 2012 Exams

A. Case law:            CCEx & ST  Vs  Lincoln Helios (India) Ltd (2011)  (Karnataka HC)

1. Question:    Is Service tax and Excise duty liability is Mutually exclusive

2. Facts:            a. Assesee manufactured goods as well as offered services.

                        b. Paid only excise duty, but whole value included the value of service also.

c. Did not pay service tax on ground that there could not be levy of Tax under two parliamentary legislations.

3. Analysis:     Excise duty is levied aspect of manufacture and Service tax on aspect of services rendered.  And hence this does not amount to payment of tax twice.

4. Conclusion:  Held that Assesee is liable to pay service tax on the value of Services rendered.

B. Case Law:           CCEx & ST  Vs  Volvo India Ltd (2011)  (Karnataka HC)

1. Question:    Whether the asessee is liable to pay service tax falls squarely within exception carved out in section 35G of the CE Act, 1944.

2. Analysis:     The appeal lies to the Apex court under section 35L of CE Act 1944, which alone has exclusive jurisdiction to decide the said question.

3. Conclusion:  Held that the High Court has no Jurisdiction to adjudicate this issue.

C. Case Law:            Idea Mobile Communications Ltd Vs CCE 2011. (SC)

1. Question:    a. Appeal against Kerala High court verdict, that SIM cards were not goods sold or intended to be sold to the customer , but supplied as part of service.

                        b. And hence the value of SIM card supplied form part of value of taxable service.

2. Conclusion:  Supreme Court upheld the decision of Kerala High Court and decided to include the value of SIM card supplied form part of value of taxable service.


Please also refer the post : Select Customs Laws applicable for CA Final May 2012 Exams