9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 58 - AT - Service TaxCENVAT Credit - input services - GTA Service - merged entity - Special Purpose Vehicle (SPV) namely JK Environ-tech LTD (JKETL) received the GTA services - HELD THAT - The appellant and JK Environ-tech LTD (JKETL) have merged w.e.f 01.04.2013 is not in dispute. It is also not in dispute the services were received by the JK Environ-tech LTD (JKETL) for the period 01.04.2013 to 30.09.2015, i.e. after 01.04.2013, the appointed date from which the two are entities have merged. It is seen that the Tribunal in the case of COMMISSIONER OF SERVICE TAX, DELHI I VERSUS ITC HOTELS LTD 2011 (9) TMI 837 - CESTAT, NEWDELHI , have held that any business conducted by the respondents is to be held as having been conducted on behalf of the transferee company. As such, the service tax provided to the ITC Ltd. and Ansal Hotels Ltd. have to be considered as having been provided on behalf of the transferee company viz. ITC. Ltd., in which case, no service tax liability would arise against the service provider. In view of the above observations of Tribunal, it can be concluded that the two entities namely JK Environ-tech LTD (JKETL) and the appellants are to be treated as one w.e.f 01.04.2013. It is not in dispute that the appellant themselves were manufacturer of excisable goods at the material time and therefore would have been entitled to availed Cenvat Credit of GTA services. In this background the services received by JK Environ-tech LTD (JKETL) after the appointed dated, i.e. 01.04.2013, are to be treated as services received by the appellants. Appeal allowed - decided in favor of appellant.
Issues:
- Denial of Cenvat Credit on GTA Service due to merger of entities Analysis: The appeal was filed against the denial of Cenvat Credit on GTA Service by M/s. JK PAPER LTD post their merger with JK Environ-tech LTD (JKETL). The Chartered Accountant for the appellant argued that the merger of the entities was effective from 01.04.2013 as per the scheme submitted to the Hon'ble High Court. Referring to the decision in the case of ITC HOTELS LTD, it was contended that post-merger, all services received by JK Environ-tech LTD (JKETL) should be considered as received by the appellant themselves, who were entitled to avail Cenvat Credit as manufacturers of paper. The Authorized representative for the respondent relied on the impugned order. The Tribunal observed that the merger of M/s. JK PAPER LTD and JK Environ-tech LTD (JKETL) w.e.f 01.04.2013 was undisputed. Citing the decision in the case of ITC HOTELS LTD, the Tribunal highlighted that the date of amalgamation as presented in the scheme should be considered as the 'transfer date', irrespective of the later approval by the Court. The Tribunal emphasized that post-merger, services provided to the appellant should be deemed as provided to themselves, absolving any service tax liability. The Tribunal concluded that post-merger, JK Environ-tech LTD (JKETL) and the appellants are to be treated as one entity from 01.04.2013. As the appellants were manufacturers of excisable goods entitled to Cenvat Credit on GTA services, services received by JK Environ-tech LTD (JKETL) after the merger date should be deemed as received by the appellants. Consequently, the impugned order was set aside, and the appeal was allowed.
|
