SERVICE TAX
Service Tax Cannot Be Demanded Solely Based On Form 26AS Data Without Inquiry: Gauhati High Court
The Gauhati High Court on 20 February, held that the Revenue Department cannot demand Service Tax from a taxpayer, solely on the basis of information provided in Form 26AS. The Division Bench of Justice Michael Zothankhuma and Justice Shamima Jahan heard an appeal filed by the Principal Commissioner of CGST, Dibrugarh, against a CESTAT Kolkata order that had set aside a service tax demand of Rs. 6,39,09,190 imposed on a contractor. The Bench held: “The show cause notice dated 21.10.2019 and...
Service Tax Fully Exempt For Rural Skill And Vocational Training Under DDU-GKY: CESTAT Ahmedabad
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, on 27 February, ruled that training services under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) are exempt from service tax if covered by the applicable notifications. A Bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh, allowed the appeal by Checkmate Services Pvt. Ltd., confirming that providing skill and vocational training to rural youth under DDU-GKY was...
Mere Audit Detection Not Ground To Invoke Extended Limitation Under Finance Act: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi on 9 March, emphasised that the extended period of limitation cannot be invoked in the absence of a specific allegation of fraud, collusion, or suppression of facts. A Bench comprising Judicial Member Ms. Binu Tamta and Technical Member Ms. Hemambika R. Priya, set aside a service tax demand raised against the Rajasthan Housing Board, holding that where the taxpayer had disclosed the availment of CENVAT credit in its...
CESTAT Allows Perrigo Lab's ₹44.72 Lakh CENVAT Credit Refund Denied Over Clerical Invoice Error
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently allowed an appeal filed by Perrigo Laboratories India Pvt. Ltd., holding that part of its refund claim for unutilised CENVAT credit was wrongly rejected due to a clerical discrepancy in invoices. A single-member bench of Judicial Member Dr. Suvendu Kumar Pati set aside the order of the commissioner (appeals), Thane, which had denied a refund of Rs 44.72 lakh on the ground that the original invoice...
Actor Rajinikanth Gets Relief As CESTAT Chennai Sets Aside ₹56.84 Lakh Service Tax Demand On Hotel Lease
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Chennai on Wednesday set aside a service tax demand of about Rs 56.84 lakh against veteran Tamil actor Rajinikanth, holding that renting a building for use as a hotel is excluded from service tax under the Finance Act even if the premises contain facilities such as a restaurant, banquet hall, conference hall, bar, and health club. A bench of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar observed, "Their presence...
No Service Tax Exemption Where Overriding Commission Is Received In INR: Madras High Court
The Madras High Court held that travel agents acting as General Sales Agents (GSAs) for foreign airlines cannot claim service tax exemption as an export of services when their overriding commission is received in Indian Rupees rather than convertible foreign exchange, even if the services are provided to foreign principals. A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer Kumar held that exemption notifications are to be strictly construed, and the condition requiring...
Service Taxability Appeals Lie To Supreme Court, Not High Court: Delhi High Court Reiterates
The Delhi High Court has dismissed a service tax appeal filed by the Revenue, holding that questions relating to taxability fall outside the High Court's appellate jurisdiction under Section 35G of the Central Excise Act, and can be examined only by the Supreme Court.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed, “we have gone through the judgments cited by the counsel for the respondent in the matter of M/S Konark Exim Pvt. Ltd (referred supra). In the said matter,...
Delhi High Court Upholds CESTAT Order Allowing Verification Of Tax Exemption On Services To Foreign Embassies
The Delhi High Court has recently upheld an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) permitting verification of certificates for claiming service tax exemption on services rendered to foreign embassies and diplomatic missions.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul held that no substantial question of law arose from the CESTAT's decision, which had remanded the matter to the adjudicating authority for the limited purpose of...
CESTAT Sets Aside Rs 24.96 Lakh Service Tax Demand Against Contractor Based Only On TDS Statement
The Kolkata Bench of CESTAT has set aside a service tax demand of Rs 24.96 lakh against a Chakradharpur contractor, holding that his work for the Railways, exempt subcontracted projects, and construction of single residential units did not attract service tax. The bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that a demand cannot stand if it is based solely on Form 26AS data without corroborative evidence or independent inquiry. Form 26AS is an annual tax...
Service Tax Is Leviable On Repair Services Provided To Kolkata Metro: CESTAT New Delhi
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 26 February, held that repair and maintenance services rendered to the Kolkata Metro Railway are not eligible for tax exemption under the Mega Exemption Notification. A Bench comprising Judicial Member Dr. Rachna Gupta, focussed on whether such services could be treated as exempt railway-related works and whether the Department was justified in invoking the extended period to confirm the service tax demand. ...
CESTAT Delhi Quashes ₹1.81 Crore Service Tax Demand on CII For Overseas Exhibitions
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that fees collected by the Confederation of Indian Industry (CII) from its members for facilitating participation in overseas business exhibitions are not liable to service tax under the category of “Business Exhibition Service”.The bench consists of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, was hearing an appeal filed by Confederation of Indian Industry (appellant) against...
Customs House Agent Services To Foreign Clients Are Export, Service Tax Not Payable: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that Customs House Agent (CHA) services rendered by an international freight forwarder to overseas customers constitute “export of service” and are not liable to service tax. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan heard cross appeals arising from an order passed against Ceva Freight India Pvt. Ltd (taxpayer), an international freight forwarder engaged...