SERVICE TAX
No Statutory Mechanism To Revise GST Return For ITC: HP High Court Allows Manual Filing Of Monthly Return
In the absence of any statutory mechanism under the GST law to revise or correct GSTR-3B, the monthly GST return used to declare tax liability and claim Input Tax Credit, a taxpayer cannot be left without a remedy for a bona fide mistake, the Himachal Pradesh High Court has held. A division bench of Justices Vivek Singh Thakur and Romesh Verma allowed a registered taxpayer to file the GSTR-3B return manually for the quarter ending March 2021 so that its unclaimed Input Tax Credit (ITC) could be...
Can Service Tax Be Levied On Transfer of Development Rights? Delhi High Court To Decide
The Delhi High Court on Monday took up a Revenue appeal that squarely raises the question of whether the transfer of development rights constitutes a taxable service under the Finance Act, 1994. A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul issued notice in an appeal filed by the Service Tax Department against an order of the Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which had quashed a service tax demand of nearly Rs 5 crore raised on a real estate...
Royalty Under Mining Lease Executed Before 1 April 2016 Not Taxable; CESTAT Delhi Remands Service Tax Demand Case
The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has remanded a service tax demand raised on mining royalty paid to the State Government, holding that where the mining lease was executed prior to 1 April 2016, the applicability of service tax must be examined in light of the negative list regime under the Finance Act, 1994 . The Bench, comprising Ms. Binu Tamta (Judicial Member) and Ms. Hemambika R. Priya (Technical Member), noted that the...
Service Tax | Penalty U/S 78A Cannot Be Imposed On Director Without Proof Of Knowledge Or Wilful Default: CESTAT Mumbai
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a penalty under Section 78A of the Finance Act, 1994, cannot be imposed on a director unless it is established that the director was responsible for the company's business and was knowingly involved in the tax evasion. C J Mathew (Technical Member) referred to Section 78A of the Finance Act, 1994 and noted that the prerequisites for imposition of penalty under Section 78A of the Finance Act,...
Service Tax | Co-Op Society Paying Rent Arrears To Local Municipality For Gas Transportation Pipeline Not Liable Under Reverse Charge : CESTAT Ahmedabad
The Ahmedabad Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand of service tax by treating payment of Rs. 60 lakhs to Vallabh Vidhyanagar Municipal Corporation as rent arrears and not consideration for tolerating/refraining from an act. The Bench comprising, Dr. Ajaya Krishna Vishvesha (Judicial Member) and Mr. Satendra Vikram Singh (Technical Member) examined whether Rs. 60 lakhs paid to Municipal Administration of Vallabh Vidhyanagar i.e. Vallabh...
Delhi High Court Allows Use Of Transitional CENVAT Credit For Mandatory Pre-Deposit Before CESTAT
The Delhi High Court, in a 'rare' scenario where an appeal was sought to be admitted before the CESTAT on the strength of pre-deposit made using through DRC-03, has clarified that pre-deposit was partial component of the demand just as tax, interest and penalty. In a recent judgment dated December 22, 2025, the Delhi High Court dealt with whether CENVAT credit transitioned into the GST regime as on July 01, 2017 could be utilised for the purpose of making pre-deposit or not. A ...
No Service Tax Payable On Laying Of Cables Under Or Alongside Roads: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that consideration received for laying of underground telecom/optical fibre cables under or alongside roads is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) opined that the entire demand confirmed in the impugned order under these specific categories is not liable to Service Tax, as all the amounts received by the assessee pertain to laying of cables...
Remuneration Paid To Whole-Time Directors Treated As 'Salary'; Service Tax Not Leviable: CESTAT Chennai
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that remuneration paid to whole-time directors does not constitute a taxable service. Consequently, service tax under the reverse charge mechanism (RCM) is not leviable. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) opined that the remuneration paid to the Directors constitutes “salary” under an employer–employee relationship and is therefore not exigible to service tax. ...
Works Contract Service Provided To CESC For Transmission Or Distribution Of Electricity Not Liable To Service Tax: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that works contract service provided to Calcutta Electricity Supply Corporation (CESC) for transmission or distribution of electricity is not liable to service tax. Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) examined whether the works contract service provided by the assessee to Calcutta Electricity Supply Corporation (CESC) for transmission or distribution of electricity is...
Service Tax | Sale Of Popcorn & Beverages At Cinema Counters Is Not Service, No Service Tax Payable: CESTAT Delhi
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside a service tax demand of over ₹18.84 crore against assessee, holding that the sale of food and beverages such as popcorn, snacks and soft drinks at cinema counters amounts to sale of goods and does not involve any element of “service” under the Finance Act, 1994. A Bench comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao was hearing an appeal filed by M/s Cinepolis India...
Tax Paid During Probe Must Be Refunded Once No Liability Found: Chhattisgarh High Court Allows Service Tax Refund
The High Court of Chhattisgarh has allowed a service tax appeal filed by an assessee, setting aside orders passed by the department and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) which had rejected a refund claim as time-barred under Section 102(3) of the Finance Act, 1994 . A Division Bench of Justice Rajani Dubey and Justice Amitendra Kishore Prasad was hearing an appeal challenging CESTAT's order that denied refund of ₹14.89 lakh deposited by the assessee during...
No Break-Up, No VAT Proof: CESTAT Allahabad Upholds ₹2.19 Crore Service Tax Demand Against Lakmé Franchise Beauty Salon
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that in the absence of any documentary break-up between service receipts and retail sale of goods, the entire receipts of the Lakme Franchise beauty salon are liable to service tax. P. Dinesha (Judicial Member) and Sanjiv Srivastava (Technical Member) stated that no Notes on Accounts, which would have been part of the audited balance sheet/ profit and loss account, showing the proceeds from the...