Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

August 2023

Service Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang
Chartered Accountants
Reading Time 6 mins
TRIBUNAL 10 M/s Vodafone Idea Ltd vs. Commissioner of CGST and Central Excise [2023-TIOL-354-CESTAT-KOL] Date of order: 23rd February, 2023 Commission agent services used for collection of debts is allowable as CENVAT credit. FACTS
The appellant has availed CENVAT credit on the services provided by the commission agent engaged in collection of debts from the various subscribers. The department placing reliance on the decision of the High Court of Gujarat in the case of Cadila Healthcare Ltd [2013 (30) STR 3 (Guj.)] has disallowed the said credit. HELD The Tribunal primarily noted that, in the present case, the commission agent is not rendering any service towards sale/sales promotion. He is engaged in the collection of debts from the subscribers. Therefore, the basis adopted for the issuance of the Notice relying on the decision in the case of Cadila Health Care is itself erroneous. Relying on the decisions in the case of Vodafone Essar Cellular Ltd [2018-TIOL-3889-CESTAT-MAD] and Bajaj Finance Ltd [2017-TIOL-4355-CESTAT-MUM] wherein charges paid to Bill Collection Agencies and Recovery Agents service was allowed, the Appeal is allowed. 11 M/s. Manashi Craft Pvt. Ltd vs. Commiss
Read More
Download PDF

You May Also Like

Allied Laws

Corporate Law Corner : Part A | Company Law