Statutory CAMPA Deposits Not Consideration For Taxable Service Under Finance Act: CESTAT New Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, on 25 May held that mandatory Net Present Value (NPV) deposits made into the Compensatory Afforestation Fund (CAMPA) for obtaining forest clearance cannot be treated as consideration for a taxable service under the Finance Act, 1994. Judicial Member Ajay Sharma and Technical Member P.V. Subba Rao allowed the appeal filed by Chhattisgarh State Power Transmission Company Ltd. and set aside a...

Service Tax Demand Based Solely On Third-Party TDS, ITR Data Unsustainable Without Inquiry: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently held that the tax department cannot sustain a service tax demand by invoking the extended limitation period solely on the basis of discrepancies between service tax returns and third-party TDS/ITR data. The tribunal held the department must independently verify whether taxable services were actually rendered before raising such a demand. It accordingly set aside a ₹7.67 lakh demand against Vikash...

WhatsApp Service of SCN Not Recognised Under Central Excise Law: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, on Monday held that service of a show cause notice through WhatsApp is not a legally recognised mode of service under the Central Excise Act. It set aside a service tax demand of ₹2.28 lakh raised against a person engaged in services relating to sale of advertisement space in print media, also finding that the bulk of the demand was time-barred and the balance unsustainable for want of evidence of fraud or wilful...

CESTAT Delhi Sets Aside ₹3.07 Crore Service Tax Demand, Upholds Cenvat Credit On Running Bills

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a service tax demand of more than ₹3.07 crore against Resident Engineer, Rajasthan Housing Board, along with interest and penalties, in a dispute over availment of Cenvat credit on running account bills and measurement books. A bench of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya held that the extended limitation period could not be invoked and that credit could not be denied where...

67% Service Tax Abatement Cannot Be Denied For Omission In ST-3 Returns: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 May held that substantive benefit of 67% abatement under Notification No. 1/2006-ST cannot be denied merely because the taxpayer failed to claim the benefit in its ST-3 returns, particularly when the record admitted use of materials in execution of construction services. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan set aside the service tax demand, interest and penalty imposed on Singh...

Exporter Can't Be Denied CENVAT Credit Solely For Lack Of Service Tax Registration: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax registration is not a pre-condition for taking CENVAT credit where a taxpayer was exclusively engaged in the export of services and not liable to pay service tax. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi held a plain reading of the statutory framework did not support the department's stand that such credit could be denied solely because the taxpayer...

CESTAT Chandigarh Holds Credit Card Cashback Incentives Not Taxable, Upholds Relief To Tek Travels

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 14 May held that cashback incentives received from banks on the use of commercial credit cards for airline ticket bookings do not constitute consideration for any taxable service under the Finance Act, 1994. Judicial Member S.S. Garg and P. Technical Member Anjani Kumar upheld the Commissioner's order dropping the service tax demand of Rs. 8.03 crore raised against Tek Travels Pvt. Ltd. on cashback...

Landlord Cannot Recover Service Tax From Tenant Without Express Clause In Lease: Delhi High Court

The Delhi High Court has ron Thursday held that a landlord cannot recover service tax from a tenant in the absence of an express covenant in the lease deed imposing such liability on the tenant. Justice Neena Bansal Krishna dismissed an appeal filed by landlords against a decree directing refund of ₹5.53 lakh deducted from the tenant's refundable security deposit towards alleged service tax dues.The dispute arose between Sunrider India Pvt Ltd and the landlords in relation to a commercial...

IOCL's Terminal Facilities For Crude Oil Storage At Barauni Attract Service Tax: Patna High Court

The Patna High Court has held that terminal facilities used by IOCL's Barauni Refinery for storing crude oil before onward transportation constituted an independent taxable service liable to service tax, and were not merely incidental to pipeline transportation. The court ruled, “If MOU creates a provision of a separate charge for 'discharge facility' or 'terminal facilities' or 'storing of crude oil' before entering into next phase of transportation for Bongaigaon Refinery then, it cannot be...

CESTAT Allahabad Quashes ₹77 Cr Demand On Samsung, Holds Mere Foreign Payments Do Not Trigger Service Tax

On 19 May, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that service tax under the reverse charge mechanism cannot be levied merely on the basis of payments made in foreign currency, and that the Department must first establish receipt of a taxable service. Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar set aside service tax demands exceeding Rs 77 crore raised against Samsung Electronics India Pvt. Ltd. for the period July...

CESTAT Delhi Quashes Service Tax Demand On Indian Unit Over Foreign Parent's Un-Invoiced Allocations

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi has quashed a Rs 1.88 crore service tax demand raised on an Indian subsidiary over un-invoiced allocations reflected in its foreign parent company's internal accounting system. The Tribunal found that the disputed amounts did not relate to any service rendered to the subsidiary and involved no consideration. A coram of Judicial Member Binu Tamta and Technical Member P. V. Subba Rao dismissed appeals filed by the...

HAL Need Not Pay Service Tax On Technology Transfer From Russian Agency For SU-30 Production: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Hindustan Aeronautics Limited (HAL) was not liable to pay service tax under the reverse charge mechanism on payments made to Russian state agency Rosoboronexport. The payments are related to the transfer of technology and technical assistance for the manufacture of SU-30 MKI aircraft in India. The ruling was delivered by a bench comprising Judicial Member Angad Prasad and Technical Member A.K....