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C.No: IV/16/13/09-STC (T) Dated : .07.2009


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.






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