No Service Tax On Catering Services Provided To Educational Institutions: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on catering services provided to educational institutions. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) were addressing the issue of whether the catering services provided by the assessee to a School with hostel facility are covered under the exemption from payment of service tax given at serial no.9 of Notification No.25/2012-ST dated...

`Tribunal Has Inherent Authority To Stay Orders Detrimental To Revenue: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that tribunal has inherent authority to stay orders detrimental to revenue. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) stated that “the power of taxation including its collection being an inherent attribute of sovereignty, the right of revenue to seek a stay of an order determinantal to the collection of taxes, cannot be lightly dismissed….……..we find force in the plea...

Cenvat Credit Can Be Availed On Sugar Cess Paid On Imported Raw Sugar: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that cenvat credit can be availed on sugar cess paid on imported raw sugar. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) were addressing the issue of whether the assessee is entitled to avail the CENVAT credit of the sugar cess paid on imported raw sugar or not. In this case, the assessee/appellant is engaged in manufacturing of sugar. In year 2010, the assessee...

Drawback Not Allowed Where Refund Exceeds Market Value Of Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that drawback not allowed where refund exceeds market value of goods. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that if the transaction value (FOB value) is so high, that the drawback due on the goods exceeds the market value of the goods, then, as per section 76(1) (b), no drawback shall be allowed. In this case, the assessee/appellant filed two...

Customs Wrongly Treated 998 Purity Gold Jewellery As Prohibited Goods Under Baggage Rules: Delhi High Court Grants Relief To Traveller

The Delhi High Court recently granted relief to a woman whose 998 purity (equivalent to 24 karat) gold jewellery was treated as prohibited goods under the Baggage Rules 2016, and absolutely confiscated by the Customs Department on her return to the country.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“On the aspect of personal effects and jewellery, the Adjudicating Authority has merely held that because of the purity, the same cannot be considered as personal...

Mobile Value-Added Services To Telephone Service Providers Classified As OIDAR; Service Tax Applicable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mobile value-added services to telephone service providers classified as online information database access and retrieval services (OIDAR), service tax applicable. Dr. D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) were addressing the issue of whether the Mobile Value-Added Services rendered by the assessee can be classified as 'Online Information Database Access and...

Service Tax Can't Be Levied On Transfer Or Assignment Of Copyright Of Film Produced Under Copyright Service: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax can't be levied on transfer or assignment of copyright of film produced under copyright service. P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) were addressing the issue of whether service tax can be levied on exhibition of films under the category of Business Auxiliary Service (BAS) or demand can be confirmed against transfer or assignment of...

Service Tax Not Leviable On Cricket Association Clubs's Services To Its Members: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) stated that service tax is not leviable on cricket association club services to its members, and further allowed Cenvat Credit on the LED score board. Dr. D.M. Misra (Judicial Member) and R Bhagya Devi (Technical Member) stated that the Commissioner's finding that the said LED score board has no nexus with the taxable service provided viz. Mandap Keeper service and other services is also devoid of...

Service Tax Not Leviable On Repairs Of School Building Run By Military Engineering Services: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not leviable on repairs of school building run by military engineering services. Angad Prasad (Judicial Member) and A.K. Jyotishi (Technical Member) opined that the services rendered to Military Engineering Services (MES) was in relation to Sainik School run by them and such building cannot be used for commerce and hence repairs of such building are beyond the scope of ...

No Excise Duty On Manufacture Of Drip Irrigation System And Its Component Parts: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no excise duty on manufacture of drip irrigation system and its component parts. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that the impugned goods viz., polytubes, microtubes, HDPE pipes were used for Drip irrigation systems, the appropriate classification in terms of the CBEC circular dated 16.03.1998 would be under sub-heading no. 8424.91, and not...

Goods Used As Implants Or Rehabilitation Aids Are Eligible For Customs Duty Exemption: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods used as implants or rehabilitation aids are eligible for Customs Duty exemption. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that “since, the implants such as repair of knee, hip and other joints, shoulder and various other parts of the body; repair of soft tissue injuries and degenerative conditions of the shoulder etc., are in the nature of...

Leasing Out Land For 90 Years Against One-Time Payment Constitutes Transfer Of Immovable Property, Exempt From Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that leasing out land for 90 years against one-time payment constitutes transfer of immovable property, exempt from service tax. Dr. Rachna Gupta (Judicial) and P.V. Subba Rao (Technical Member) were addressing the issue of whether the act of transferring the land on lease for a period of 90 years against the one-time premium giving all rights of use, possession and even sale to the developer...