Service Tax Not Payable On Royalty Received For Group Companies' Use Of Copyrighted Logo: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on royalty received for group companies' use of the copyrighted 'TTK' Logo founded by T.T. Krishnamachari & Co. (assessee). Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) examined whether the demand of service for the 'TTK' logo of the assessee used by its group companies under Intellectual Property Rights service is tenable. In the case...

Mere Paper Trail Or Endorsed Bills Of Entry Without Actual Movement Of Goods Not Enough To Claim CENVAT Credit: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere paper trail or endorsed bills of entry without actual movement of goods is not enough to claim CENVAT (Central Value Added Tax) Credit. Vasa Seshagiri Rao (Technical Member) opined that mere creation of paperwork or paper trail to indicate movement of goods, or mere endorsement of Bills of Entry, is not sufficient to establish eligibility for credit. The essential conditions required...

Service Tax Refund Cannot Be Denied On Limitation When Deposit Was Made During Investigation: Chhattisgarh High Court

The Chhattisgarh High Court has held that service tax deposited during the course of investigation cannot be denied refund merely on the ground of limitation under Section 102(3) of the Finance Act, 1994, especially when the department itself later drops proceedings and acknowledges non-liability. The Division Bench of Justice Rajani Dubey and Justice Amitendra Kishore Prasad allowed a tax appeal filed by a service tax assessee challenging the rejection of a refund claim amounting to...

Customs | Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that reassessment of Bills of Entry cannot be sought at a belated stage after clearance of goods merely to claim refund on the basis of a favourable Supreme Court judgment delivered in another assessee's case. A Division Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) dismissed the appeal filed by the assessee, M/s Minerva Enterprises and upheld the order of...

Sales Tax Discharged Through NPV Under State Incentive Scheme Cannot Be Added Back To Excise Transaction Value: CESTAT Mumbai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has held that sales tax deferred under a State incentive scheme and subsequently discharged by payment of its Net Present Value (NPV) cannot be treated as “sales tax not paid” so as to be added back to the transaction value for levy of central excise duty. A Division Bench comprising C.J. Mathew (Technical Member) and Ajay Sharma (Judicial Member) allowed the appeal filed by the assessee, M/s Grindwell Norton Ltd....

Construction Of School & College Buildings Between 2008-2012 Not Taxable As Commercial Or Industrial Construction Service: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the construction of school and college buildings during 2008-2012 is not taxable as commercial or industrial construction service. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the construction of buildings for educational institutions, such as schools and colleges, during 2008–2012, is taxable under Commercial or Industrial Construction Service...

Service Tax Cannot Be Levied On Rent-A-Cab Services Provided To SEZ Units: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax cannot be levied on rent-a-cab services provided to Special Economic Zone (SEZ) units as per the overriding effect under Section 51 of the SEZ Act (The Special Economic Zones Act, 2005). Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) observed that the SEZ Act is a self-contained Act which provides exemptions on taxes, duties, cess, drawbacks and...

Meter Reading, Billing & Disconnection Services Are Ancillary To Electricity Distribution; Exempt From Service Tax: CESTAT Allahabad

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services, such as meter reading, billing, and connection/disconnection of electricity, are ancillary services of transmission and distribution of electricity and service tax is not payable for these services. P.K. Choudhary (Judicial Member) examined whether the services such as meter reading, collection of revenue, connection and disconnection of electricity supply would be covered under...

Manufacturing & Packaging Of Cement Not Civil Construction Activities; CENVAT Credit Cannot Be Denied: CESTAT Bangalore

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that manufacturing and packaging of cement are works service contracts, not civil construction activities, and therefore CENVAT (Central Value Added Tax) Credit cannot be denied. Regarding the allegation of ineligible CENVAT credit availed by the assessee on lease premium, the bench consists of P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) found that since the...

Services To Marriott Hotel In Hong Kong Are 'Export Of Services': CESTAT Mumbai Sets Aside Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that services rendered by Marriott Hotels India Pvt. Ltd. to its overseas group entity Marriott Hong Kong qualify as export of services, and therefore cannot be subjected to service tax under the Finance Act, 1994. A Division Bench of Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban allowed three connected appeals filed by Marriott India, and set aside the entire service tax demand, ...

Delay By Authority In Sanctioning Refund Claim Is 'Sufficient Cause' For Excluding Limitation: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that delay by the refund authority in sanctioning a refund claim is 'sufficient cause' for excluding limitation under Section 14 of the Limitation Act. Section 14 of the Limitation Act, 1963, allows for the exclusion of time spent in good faith in a previous civil proceeding from the calculation of the limitation period for a subsequent suit or application. Vasa Seshagiri Rao (Technical...

No Input-Tax Credit On IGST Paid Through Pre-Consultation Letter Or TR-6 Challan: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has disallowed Input Tax Credit (ITC) worth Rs. 27,14,559 paid towards differential IGST demand for mold-cleaning machine import from China through pre‑consultation letter/TR‑6 challan. In a ruling dated November 24, 2025 Gujarat AAR comprising Shri. Vishal Malani (Memmer- Central Tax) and Smt. Sushma Vora (Member- State Tax) ruled on twin aspects relating to eligibility to avail ITC on the basis of pre-consultation letter and limitation in...