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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. Commissioner of Service Tax
[2023-TIOL-400-CESTAT-KOL]
Date of order: 11th April, 2023

Interior Decorator service provided along with material is taxable as Works Cont
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