Whether AO can travel beyond direction of Tribunal directions

 

Order passed giving appeal effect — Whether AO can travel beyond direction of Tribunal

While passing order giving appeal effect, the AO cannot travel beyond direction of the appellate authority and cannot bring to tax income which was held not taxable by such authority. Vide Lopamudra Misra v. ACIT (2011) 42(I) ITCL 265(Ori-HC)

SERVICE TAX

Cenvat credit — Input service used in providing taxable and non-taxable service — Assessee engaged in trading activity

Assessee was providing engaged in providing taxable services falling under the categories Consulting Engineer, Maintenance or Repair Service and Erection, Commissioning and Installation Services. It also supplied telecommunication equipment to one of its customers. The Commissioner held that the assessee was entitled to utilize Cenvat Credit only to the extent of 20% of the service tax payable in terms of Rule 6(3)(c) of Cenvat Credit Rules, 2004. The Tribunal held that the Corporate Office registered with the Service Tax department cannot be held to have rendered taxable and exempted service for the reason that it engaged in trading activity. Hence, the full Cenvat credit was allowable ― Ericsson India Pvt. Ltd. v. CCCE&ST (CESTAT-Bang) Stay Order No. 937/2010, dated 9-12-2010.

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