CESTAT Chennai Sets Aside TANTRANSCO Demand As Time Barred, But Clarifies Rent-a-Cab Service Taxable

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal on 24 March, held that hiring motor vehicles for official use, classified as rent-a-cab services are not eligible for exemption under the reverse charge mechanism and remain liable to service tax, as they are merely facilitative in nature and not integral to the core function of electricity transmissionA Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. clarified that such services does...

Transportation And Disposal Of Fly Ash Not Cargo, No Service Tax Leviable: CESTAT Bangalore

On 24 March, the Regional Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Bangalore, held that transportation and disposal of fly ash cannot be classified as 'Cargo Handling Service' under the Finance Act, 1994. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member R. Bhagya Devi, set aside substantial service tax demands raised by the Department against Threyambaka Enterprises. The Tribunal stated:“...the Revenue is of the opinion that since...

CESTAT Chandigarh Upholds Transfer Of CENVAT Credit After Shift Of Centralised Registration

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh Bench, has recently held that transfer of unutilised CENVAT credit by a taxpayer from its Jaipur office to Gurgaon upon shifting of centralised registration is legally sustainable, in the absence of any dispute regarding the validity of such credit at the original location.A coram of Judicial Member S.S. Garg and Technical Member P. Anjani Kumar, while rejecting the Revenue's objection to the transfer of credit, noted...

Technical Glitch On Portal Cannot Deprive Taxpayer Of Sabka Vishwas Scheme Benefit: Bombay High Court

The Bombay High Court on 11 March held that the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 cannot be denied on mere technical grounds when a taxpayer is not at fault. A Division Bench comprising Justice G. S. Kulkarni and Justice Aarti Sathe allowed a writ petition by Himtaj Ayurved Pvt. Ltd and directed the authorities to issue it a discharge certificate, emphasising that the scheme is a one-time measure aimed at resolving legacy disputes and ensuring disclosure of...

Failure To Specify Statutory Provisions Vitiates Service Tax Demand: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 17 March set aside a service tax demand against Trade Line, holding that the Department cannot proceed when it fails to put the taxpayer on notice of the statutory provisions applicable to the relevant period. The Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. held:“We also find that the Appellant has rightly contended that the Show Cause Notice No.30/2013 dated 18.09.2013 has not put...

CESTAT Chandigarh Allows Indus Towers Appeals, Upholds CENVAT Credit On Telecom Towers, Shelters, Input Services

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed appeals filed by Indus Towers Ltd., holding that CENVAT credit on inputs, capital goods and input services relating to telecom towers and shelters is admissibleThe dispute arose from multiple show cause notices issued for the financial years 2014–15 and 2015–16, alleging wrongful availment of CENVAT credit on inputs, capital goods and input services used for providing passive telecom infrastructure....

Service Tax Demand Unsustainable Where Warranty Services Qualify As Works Contract: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 March, held that a service tax demand cannot be sustained if warranty services qualify as Works Contract Services and all material particulars are duly disclosed, and that invoking the extended period of limitation is improper in the absence of suppression. A Bench of Judicial Member Dr. Rachna Gupta allowed the appeal filed by Electrocare, set aside the service tax demand raised for FY 2014–15,...

Tax Refund Cannot Be Denied As Time-Barred Where Service Was Not Provided: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal on 20 March held that refund of service tax paid on services which were ultimately not provided cannot be rejected on the ground of limitation under Section 11B of the Central Excise Act, 1944. A Division Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya was hearing appeals filed by Indiabulls Distribution Services Ltd against rejection of refund claims on the ground of time bar. The...

CESTAT New Delhi Grants Rs 2.93 Crore Refund To McCann Erickson, Says Refund Of Excess Service Tax Not Time-Barred

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that the Government cannot deny refund of excess service tax paid by mistake merely on the ground that the refund claim was filed after the limitation period, observing that amounts not legally payable as tax cannot be retained by the authorities. A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya said that where tax is paid without any legal liability, such payment does not...

Services With Direct Or Indirect Relation To Output Service Qualify As Input Services: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) recently held that services such as common area maintenance, vending machine operations, and travel agent services qualify as “input services” under Rule 2(l) of the CENVAT Credit Rules, 2004, in the case of a company providing taxable services including manpower supply, rent-a-cab, business auxiliary, and legal consultancy services. The tribunal held that such services have an indirect nexus with the...

CESTAT New Delhi Sets Aside Rs. 39.64 lakh Service Tax Demand On DLF-Owned Hilton Hotel, Holds Salaries Not Taxable

The New Delhi Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed the appeal filed by DLF Builders and Developers Pvt. Ltd., owner of Hotel Hilton Garden Inn, Saket, and set aside a service tax demand of Rs. 39.64 lakh along with penalties, holding that salaries paid to the general manager and department heads of the hotel cannot be treated as consideration for taxable services.The dispute arose from an investigation linked to Hilton group entities,...

BCCI Subsidies To Cricket Associations Not Taxable As Service Consideration: Kolkata CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 12 March held that subsidies received by cricket associations from Board of Control for Cricket in India (BCCI) are not liable to service tax, as they are in the nature of grants-in-aid and not consideration for any taxable service. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that there was no quid pro quo between the parties and that the amounts were provided...