SERVICE TAX
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...
Service Tax Leviable On Infrastructure Support To TCS, Educational Training Exempt: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 18 February, confirmed service tax liability on infrastructure and allied facilities provided to Tata Consultancy Services (TCS) under “Business Support Service”, while setting aside the entire demand for training and educational activities under “Management or Business Consultancy Service”. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided the appeal filed by Kalinga...
Shifting Materials Within Factory Not Taxable As “Cargo Handling Service”: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 February, held that shifting and transportation of materials within factory premises does not fall under the category of "Cargo Handling Service" and therefore no service tax is payable on such activity. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Eastern Transport Agency (taxpayer) against an order passed by the Commissioner of CGST...
CESTAT Kolkata Grants ₹1.45 Crore CENVAT Credit Relief To PwC's Kolkata Service Delivery Arm Despite Invoice Irregularities
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed in a case that CENVAT credit/refund could not have been denied where receipt of services and payment of service tax were undisputed. The bench consists of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided a batch of service tax appeals filed by Price Waterhouse Coopers Service Delivery Centre (Kolkata) Pvt. Ltd., challenging the denial of CENVAT credit and refund...
No Service Tax On Exempt Road, Canal Works Based Solely On TDS Deduction: CESTAT Allahabad
The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 20 February held that mere deduction of TDS and reflection of receipts in Form 26AS cannot determine service tax liability when the underlying activity, i.e., construction of roads and canals for Government authorities, is expressly exempt under the Mega Exemption Notification. A Bench comprising Judicial Member P.K. Choudhary allowed an appeal by Shailja Construction, noting that the entire demand...
No Service Tax Payable On Overseas Film Shooting Expenses Under Reverse Charge: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently allowed the appeal filed by Shree Venkatesh Films Pvt. Ltd., holding that no service tax is payable under the reverse charge mechanism on expenses incurred in foreign currency for the shooting of films and allied activities carried outside India.The bench, consisting of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, observed that the department had raised the demand merely...
"Unexplained Delay": Rajasthan High Court Quashes Service Tax Order Passed Nine Years After Show Cause Notices
The Rajasthan High Court has recently set aside a service tax demand raised nearly nine years after issuance of show cause notices, holding that revival of proceedings after prolonged administrative dormancy amounts to an arbitrary exercise of power and defeats the statutory discipline prescribed under the Finance Act. A Division Bench of Justice Arun Monga and Justice Yogendra Kumar Purohit quashed an order dated October 24, 2019 passed by the Joint Commissioner, Central Excise and Goods and...