13 November 2013
Dept. is issuing SCN to simcard/ recharge distributors for service tax not paid on difference of MRP and distributor price for four years ( 2008-09 to 2011-12). Is distributor liable to pay tax? If liable, can the telecom company take CENVAT for 2008-09 to 2011-12 now.Pls give relevant provisions and case laws if reported.
The Difference is may be treated only discount and the same is not liable to service tax.
A case already under litigation refer the same: 2007 (8) S.T.R. 136 (Tri. - Chennai) IN THE CESTAT, SOUTH ZONAL BENCH, CHENNAI Shri P. Karthikeyan, Member (T) JR COMMUNICATIONS & POWER CONTROLS Versus COMMR. OF C. EX., TRICHY
In case need copy of Judgement contact: nrawat2004@gmail.com
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