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2019 (7) TMI 206 - HC - Service TaxDemand of service tax on Advance - in terms of Section 67(3) of the Finance Act, 1994 - HELD THAT - The appeal is admitted on substantial questions of law.
Issues:
1. Whether export-related benefits accrue to the assessee when services are rendered abroad and payment is received in foreign currency? 2. Whether demand for service tax on advance was rightly raised under Section 67(3) of the Finance Act, 1994? Analysis: 1. The appeal challenges the order passed by the Tribunal regarding two questions of law. The first issue revolves around whether export-related benefits accrue to the assessee when services are rendered abroad and payment is received in foreign currency. The Revenue contends that the Tribunal erred in its decision by relying on previous cases before the High Court. The Tribunal disposed of two appeals, one filed by the Revenue and the other by the Assessee. The Court emphasizes the need for the Revenue to file separate appeals for each question raised, as established in a previous case involving the Commissioner of Income Tax vs. The Shipping Corporation of India Ltd. The Revenue's counsel agrees to focus solely on question (b) for the current appeal, reserving the right to file a separate appeal for question (a) related to the Assessee's appeal. The appeal is restricted to question (b) concerning the demand for service tax on advance under Section 67(3) of the Finance Act, 1994. 2. The second issue pertains to whether the demand for service tax on advance was rightfully raised under Section 67(3) of the Finance Act, 1994. The appeal is admitted based on this substantial question of law. The respondent waives service, and the appellant seeks leave to amend the appeal to comply with the Tribunal's order number requirement. The Court grants permission for the amendment and dispenses with reverification. The focus remains on determining the correctness of raising a demand for service tax on advance as per the provisions of Section 67(3) of the Finance Act, 1994.
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