SERVICE TAX
Textile Processing Once Classified As Manufacture Can't Be Reclassified As Service: CESTAT Kolkata
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax.Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the Tribunal noted that...
Service Tax: Landscaping, Garden Maintenance Contracts Taxable As Maintenance Services: CESTAT Chennai
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax. Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the tribunal noted that...
CESTAT Delhi Quashes Service Tax Demand On Charitable Society Running Educational Activities
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed an appeal filed by a charitable society, holding that it cannot be subjected to service tax for educational and community development activities where fees or contributions are collected for charitable purposes, and the society had a bona fide belief it was exempt.A Bench of Judicial Member Binu Tamta and Technical Member Rajeev Tandon set aside Rs. 3.2 crores demand against a charitable society...
Cash Calls By Oil India Are Capital Contributions, Not Taxable Services: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that 'cash calls' collected by Oil India Limited from non-operator members of an unincorporated joint venture for petroleum exploration do not constitute taxable services. As such, contributions are capital contributions and not consideration for any service. A Bench of CESTAT, comprising Ms. Binu Tamta (Judicial Member) and Ms. Hemambika R. Priya (Technical Member), allowed the appeal filed by Oil India...
Assessee Entitled To Discharge Certificate Under Sabka Vishwas Scheme Despite Portal Closure
On 19 January, the Kerala High Court held that the Central tax authorities are legally obliged to issue a discharge certificate under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019, once the assessee has paid the full settlement amount within the prescribed time. The Court clarified that the non-functioning of the online portal cannot justify withholding the certificate. In such an event, the certificate had to be issued manually, establishing that payment under the scheme creates a...
Amazon Data Hosting On Principal-to-Principal Basis Not Liable To Service Tax: CESAT Delhi
The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 January held that data hosting services provided by an Indian entity to an overseas cloud computing service provider on a principal-to-principal basis do not qualify as “intermediary services.” They constitute an export of service, and are therefore not liable to service tax in India. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside service tax demands...
Unrecognised Courses Merely Facilitating Foreign Admission Are Liable To Service Tax: CESTAT Chennai
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that programmes which merely facilitate admission to foreign universities, without conferring a degree recognised under Indian law, are liable to service tax. The Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao while hearing an appeal filed by the International School for Management Studies (ISMS) against the service tax demand held that its course did not lead to a...
Place Of Removal In FOR Sales Cannot Be Presumed As Factory Gate: CESTAT Chennai Reiterates
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the “place of removal” in FOR (Free on Road or Rail) destination sales cannot be mechanically assumed to be the factory gate and must be determined on the basis of facts and contractual terms. The tribunal set aside and remanded a service tax order denying CENVAT credit on outward transportation services after finding that the tax authorities had confirmed the demand without examining...
IAF Runway Resurfacing Covered By Retrospective Service Tax Exemption: CESTAT Delhi Allows Infra Company's Plea
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently set aside the rejection of a service tax refund claimed by G.R. Infraprojects Ltd. for resurfacing works carried out at an Indian Air Force runway. The tribunal held that the retrospective exemption restored by Parliament squarely applied in the instant case. In an order dated January 14, 2026, a coram comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside the orders of...
CESTAT Chennai Upholds Denial Of CENVAT Credit To Loyalty Management Firm, Holds Gift Voucher Supply Is Trading
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled against Accentive (India) Private Limited, a loyalty management company, holding that it cannot retain CENVAT credit on goods and gift vouchers supplied under customer reward programmes because the activity amounts to trading. While the tribunal upheld the tax demands and interest running into crores of rupees, it waived penalties for periods prior to May 14, 2015. A bench of Judicial Member...
Free Materials In Works Contracts Pre-July 2009 Excludible From Service Tax: CESTAT Ahmedabad
On 15 January, the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the value of free materials provided under an indivisible Works Contract cannot be included in taxable value for service tax purposes for contracts executed before 7 July 2009. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Mr. Satendra Vikram Singh set aside the portion of the service tax demand calculated on 933.355 MT of steel, valued at Rs....