GOVERNMENT OF INDIA
MINISTRY OF FINANCE
OFFICE OF THE COMMISSIONER OF SERVICE
TAX
6th Floor, MHU COMPLEX, 692,
ANNA SALAI, NANDANAM, CHENNAI 600035
C.No: IV/16/13/09-STC (T) Dated : .07.2009
MINUTES OF THE REGIONAL ADVISORY
COMMITTEE MEETING
HELD ON 25.06.2009
The Regional Advisory Committee Meeting
was held at 15.30 hrs on 25.06.2009 in the Chamber of the
Commissioner, Service Tax Commissionerate, Chennai. The
Meeting was chaired by Shri Rajkumar Barthwal,
Commissioner of Service Tax.
The following members attended the
Meeting.
Members from the Trade / Association:
1. Shri Shri. N. Ramaswamy, Andhra
Chamber of Commerce
2. Smt. Rani Kalavati, Senior AO, BSNL
Departmental officers:
1. Shri Lawrence David, Assistant
Commissioner
2. Shri K. Bharathi Premchand,
Superintendent (Technical)
The Chairman welcomed all the members.
The following points were taken up for discussion
Points raised by Shri N. Ramaswamy,
Andhra Chamber of Commerce
Point 1: It was reported
that one assessee faced difficulty in amending or entering
additional services in the ACES programme. While operating
certain pop ups would come on the screen and go. The
matter was discussed with the Superintendent in-charge of
Computers, who requested that an attempt be made in a
different system. Accordingly the work was attempted and
carried out successfully at the system available at the
Office of Andhra Chamber of Commerce. It may be reported
as to why the problem arose and whether there was any
specific specification of systems to be used.
Comments : It was opined that the
problem evidenced could be more so with the operating
system/ system used by the user. In this regard it was
also reported that the person was using a five year old
system. Attention was drawn to the Trade Notice No.12/2009
dated 05.03.2009 mentioning the specification requirements
for ACES. The same is reproduced below for ready
reference.
System Requirements for ACES :
-Processor Intel Pentium III and higher
-RAM: 256 MB and higher
-HDD: 80 GB and more
-Web browser : 1E 6.0 and above,
Netscape 6.2 and above
-MS Excel 2003 and above for using
online utilities
-Sound Card, Speakers / Headphones,
Colour Monitor for using Learning Management
Systems(LMS)
-TCP/IP Ports 12520 and 12540 under
firewall setting to be kept open if accesing ACES
through proxy servers.
Further, it was requested that specific
difficulty experienced with complete details be provided
to check whether any software related problems had to be
addressed.
Point 2 : There were cases, wherein
unregistered person rendering taxable service, was not
sure of the service tax levy and the amount, liable to be
paid by him. Was there any provision under which such
person can pay service tax under protest without
registering himself with the department.
Comments : It was stated that any
person having doubts about the levy of service tax on the
services rendered by them could contact in person /
address the jurisdictional Central Excise Officer/
Assistant Commissioner who would immediately clarify with
regard to the taxability of the service and whether the
person needed to get registered. It would be proper to get
registered, pay service tax and file service tax returns
periodically instead of assuming something on their own.
The person concerned may be requested to approach the
Department on any working day and get clarified
immediately.
Point 3 : In case of renting of
Immovable property service, attention was drawn to the
Delhi High Court’s decision in this regard. There were
cases wherein certain tenants were refusing payment of
service tax to their landlords and requesting the
landlords to issue bills without showing the service tax
component. What is the present position.
Comments: Chairman stated that the
Board was aware of the decision of the Hon’ble High Court
of Delhi and a SLP along with Stay Petition has been filed
before the Hon’ble Supreme Court of India. It would be
incorrect to stop payment of service tax, as otherwise
demand notice would be issued by the jurisdictional
officers invoking interest and penalty provisions. In the
event of Revenue winning the appeal the responsibility for
the payment of applicable Service Tax with interest would
squarely fall on the landlord. Hence, till the Hon’ble
Supreme Court decides the case, it would be proper to
mention service tax in the bills and remit the tax
collected into the Govt. Account.
Points raised by Smt. Rani Kalvathi,
M/s. BSNL
Point 1 : It was stated that CENVAT
availed by M/s. BSNL on Cable used for Broadband
connection fro the period prior to 1.4.2008 was denied.
Cable being capital goods, taken out of the Registered
premises and not received back within 180 days as required
under CENVAT Credit Rules. Two Show Causes Notices for the
period prior to 31.3.2008 had been issued to them and were
pending adjudication. What was the present position.
Comments : As the issue was pending
adjudication, the same would be decided by the quasi
judicial authority concerned. It was requested that we may
await orders on the same.
Point 2 : Show Cause Notices were
being issued denying CENVAT Credit on certain Input
Services like Rent – a – Cab etc. In the light of several
Tribunal Judgements, what was the present position.
Comments : Chairman stated the
issue was a big one through out the Country. It was stated
that the Board was aware of the matter and had also been
addressed to issue a list of eligible / ineligible input
services. There were cases of mediclaim and flight tickets
on which CENVAT was availed. Needless to say each case was
unique and needed to be scrutinized individually in detail
as to whether the CENVAT availed was ‘used in or in
relation to the manufacture of goods’ or ‘ used fro
providing output service’. Board was also contemplating
filing of appeals through the jurisdictional Commissioners
with the Hon’ble Supreme Court, against the Judgements
passed by various Tribunals, in the interest of Revenue.
Till such time the issue attained finality it would be
better to wait.
The meeting ended with a vote of
thanks by the Chairman.
(DEBASHISH SAHU)
JOINT COMMISSIONER
To,
The Members of Regional Advisory
Committee
As per mailing list [Department
only]
The Chief Commissioner of Central
Excise, Chennai Zone, Chennai-34.
Copy to,
Superintendent, Computer Section for
publishing in the official website
