CENVAT Credit Cannot Be Denied Solely Because Running Account Bills Are Not Invoices: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that CENVAT credit cannot be denied merely because running account bills are not conventional invoices, provided they contain the prescribed particulars required under law. Observing that, "The crux of the matter is that the authority needs to be satisfied about the relevant details/particular and not the form of the document," the tribunal ruled in favour of the Rajasthan Housing Board.Judicial Member Binu Tamta...

CESTAT Mumbai Holds Lease Rentals Collected By Asian Paints For Tinting Machines Not Liable To Service Tax

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently granted relief to Asian Paints Ltd., holding that service tax could not be levied on lease rentals collected from dealers for tinting machines after finding that the arrangement amounted to a deemed sale. The tribunal held, "I have no hesitation in holding that the transaction in the case before us is of 'deemed sale' as per Article 366 (29A)(d) of the Constitution of India." The order was passed...

CESTAT Chennai Allows CENVAT Credit To Citibank For Cleaning And Event Services After 2011 Amendment

The Chennai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 July held that Citibank N.A. is entitled to CENVAT credit on cleaning services, general insurance services, convention services, event management services and mandap keeper services. A Bench of Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. partly allowed the bank's appeals, while holding that CENVAT credit cannot be claimed on club or association services, health and fitness services, outdoor...

CESTAT Kolkata Sets Aside Service Tax Demand On Railway Cleaning and Housekeeping Services

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside the service tax demand raised against Khagaul Loco Labour Co-Operative Society after holding that the services provided by it to the Indian Railways were either not taxable, exempt from service tax, or part of the demand was barred by limitation.The tribunal also rejected the Department's allegation that the society had collected and retained service tax from the Railways, finding no evidence to support the...

One-Day Delay In Revised Service Tax Return Filing Bars Refund Claim Under CGST Act: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 21 July held that a one-day delay in filing a revised ST-3 return under Rule 7B of the Service Tax Rules, 1994 cannot be condoned as a procedural lapse for claiming refund of transitional CENVAT credit under Section 142(9)(b) of the Central Goods and Services Tax (CGST) Act, 2017.A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya upheld the order rejecting the refund claim of TV Today...

Cisco India's Support Services To Overseas Affiliates Are Export, Not Intermediary: CESTAT Bengaluru

The Bengaluru Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 20 July held that marketing support, technical support, manufacturing support, management support and other business support services provided by Cisco Systems (India) Pvt. Ltd. to its overseas group entities qualify as export of services and cannot be treated as intermediary services under the Place of Provision of Services Rules, 2012. A Bench of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi...

Reimbursement Of Stipend Paid To Apprentices Not Liable To Service Tax: CESTAT Chennai

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that reimbursement of 50% of the stipend paid to apprentices by the Board of Apprenticeship Training (BOAT) is not liable to service tax. It held that the reimbursement is akin to a statutory welfare grant rather than consideration for any taxable service.A bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao allowed the appeal filed by India Nippon Electricals Ltd. against the...

CESTAT Mumbai Sets Aside Service Tax Demand, Says Show Cause Notice Must Be Served, Not Merely Issued

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside an appellate order that had sustained a ₹1.52 lakh service tax demand after finding that the Department failed to establish that the show cause notice had been served on the assessee before adjudication proceedings were initiated.A single-member bench of Judicial Member Ajay Sharma allowed the appeal filed by Anil Lingappa Palle, proprietor of Khushi Enterprises, against an order of the Commissioner...

Supreme Court Holds BPCL, HPCL Liable For ₹16.6 Crore Service Tax For Marketing MGL's CNG

The Supreme Court on Monday held that Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL) are liable to pay more than ₹16.6 crore in service tax for facilitating the sale of Mahanagar Gas Ltd.'s (MGL) compressed natural gas (CNG). It ruled that the two public sector oil companies rendered Business Auxiliary Service to MGL by promoting and marketing its CNG, instead of purchasing and reselling the fuel. "The agent Corporations provide promotional services...

Restaurants Need Not Reverse CENVAT Credit For Food Supplied As Part Of Service: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 15 July held that restaurants providing taxable restaurant services are not required to reverse CENVAT credit under Rule 6(3) of the CENVAT Credit Rules, 2004 merely because food or beverages are supplied as part of the service. A Bench comprising Judicial Member Justice (Dr.) S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Speciality Restaurants Ltd. and set aside the order...

CESTAT Mumbai Allows YRF Studios' CENVAT Credit On Studio Repair and Renovation Works

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently allowed YRF Studios to claim CENVAT credit on service tax paid for repair, renovation, and strengthening works carried out on its existing studio buildings. It held that the services were used for maintaining infrastructure from which the company's taxable output services were provided and were not covered by the exclusion applicable to construction services.The appeal was decided by Technical Member...

Service Tax Refund For SEZ Can't Be Denied If Services Were Used For Authorised Operations: CESTAT Chennai

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a Special Economic Zone (SEZ) unit cannot be denied a refund of service tax merely because the services were not consumed within the geographical limits of the SEZ, so long as they were used for authorised operations. A single-member tribunal of Technical Member Rajeev Tandon allowed an appeal filed by ATC Tires Private Limited. "It is clear from a bare reading of Section 26(1)(e) that the...