Chartered Accountants Services Decided Cases Laws

Chartered Accountants Services Decided Cases Laws

M. S. Shah & Co. Vs. CST Ahmedabad
Service Tax: Chartered Accounts Service: Penalty under Section 76: Section 80 is invokable in those cases where the assessee can show bonafide and reasonable belief on his part. Admittedly, the appellants were aware of the fact that taxable income beyond Rs.4 lakhs is taxable to service tax, inasmuch as they were earlier registered with the department and aware of the law. No reason of setting aside the penalty under Section 76. 
Service Tax: Chartered Accounts Service: Penalty under Section 77: As regards imposition of penalty of Rs.500/- under Section 77 of Finance Act, 1994, the Section provides for imposition of penalty for contravention of Rule and provision of the Act, for which no penalty is specified elsewhere. Inasmuch as the contraventions submitted by the appellant attracts the penalty under Section 76 and Section 78, imposition of separate penalty under Section 77 may not be warranted.


L.G. Marwadi Vs. Commissioner of Central Excise Pune - IIl
Service Tax: Chartered Accountant Service : Option to pay tax once exercised cannot be withdrawn during the financial year : Refund : As the appellant has failed to fulfill the condition of the Notification the lower authorities have rightly rejected the refund claim of the appellant for violation of the condition of the said notification. The appeal filed by the appellant is rejected


Sri Magham Pullaiah Vs. Commissioner of Central Excise,Guntur
Chartered Accountant’s service: The issue that the activity carried out by ordinary clerks who have not even completed SSLC is not part of the CAs activity has already been decided in large number of appeals of CAs. One such order is that of CCE v. Umakanth & Co. dated 24-10-07. Appeal allowed with consequential relief if any.


CCEx Mangalore Vs. Rai Associates
Chartered Accountant Service: The services limited to maintaining of consumer details and billing related activity, which did not amount to professional accounting service of practicing Chartered Accountant.
Appeals by Revenue : Since the Order-in-Original was a joint order against several parties, Revenue was required to have filed separate appeals and joint appeal filed is not maintainable. 


Commissioner of C. Ex., Tirupathi Vs. Umakanth & Co.
Practising Chartered Accountant Service: Appellants undertake data processing work and maintenance of billing and accounting work on monthly/bimonthly basis of specified area. The activity not coming within the category of practicing CAs. The activity is carried out even by non-CAs and it is done by unskilled employees who are employed on contract basis. The activity is not carried out in the course of duties to be performed by a CA. The demands are also barred by time as all the details had been furnished by the assessee and as noted by the Commissioner, there was no ground for alleging suppression of facts.


Jaded Siddappa & Co. Vs. CCEx, Mangalore
Chartered Accountant Service : As per provisions of Chartered Accountants Act, the activity of outsourcing of meter reading, billing and ledger posting which was an activity to be done by the respective companies does not come within the ambit of the professional activity of Chartered Accountant. The fact that the employees were not getting trained as Chartered Accountant under the Chartered Accountants Act. They were unskilled personnel without qualifications and were only doing manual work. The employees were covered under the various labour legislations such as Contract Labour (Regulation and Abolition Act, 1970) and Minimum Wages Act. Therefore, not covered under Chartered Accountant’s service.


All India Federation of Tax Practitioners Vs. Union of India 
Legislative Competency to levy service tax on Chartered Accountants : Entry 60 of List II, mentions "Taxes on professions, trades, callings and employments". Entry 60 is a taxing entry. It is not a general entry. Tax on professions etc. has to be read as a levy on professions, trades, callings etc., as such. Therefore, Entry 60 which refers to professions cannot be extended to include services. This is what is called as an Aspect Theory. Parliament had absolute jurisdiction and legislative competence to levy tax on services
Parliament has legislative competence to levy service tax by way of impugned Finance Acts of 1994 and 1998 under Entry 97 of List I on chartered accountants, cost accountants and architects.