SERVICE TAX
Superintendent Cannot Adjudicate Cases Involving Extended Limitation: Calcutta High Court
The Calcutta High Court on 2 February held that cases that invoke the extended period of limitation are expressly excluded from the adjudicatory powers of a Superintendent, even if the demand falls within their monetary limit. Justice Om Narayan Rai, allowed a writ petition filed by the partners of Radiant Security, challenging an order by which the Superintendent, CGST, demanded service tax of Rs. 72,000 along with education cess and secondary and higher secondary cess, and imposed penalties...
Calcutta High Court Upholds Service Tax On C&F and Transport of Steel, Excludes Bending & Bundling
On 4 February, the Calcutta High Court held that service tax applies to “Clearing and Forwarding” (C&F) services and transport expenses for steel products. The Court clarified that activities such as transporting, storing, forwarding, and record-keeping fall within the scope of C&F services, while bending, bundling, and stock verification of goods do not. A Division Bench of Justices Rajasekhar Mantha and Ajay Kumar Gupta dismissed an appeal by Naresh Kumar & Co., which claimed...
Are Skin & Hair Care Treatments Taxable As Cosmetic Surgery? CESTAT Delhi Seeks Fresh Examination
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 30 January, asked the lower authorities to re-examine whether skin and hair care treatments provided by a clinical establishment qualify as “Cosmetic and Plastic Surgery Services” and are therefore liable to service tax. A Bench comprising Judicial Member Binu Tamta and Technical Member Rajeev Tandon was examining an appeal filed by Trichoderm, a Delhi-based clinical establishment operating under the brand...
Police Security Services Exempt From Service Tax Prior To June 2012: Madras High Court
The Madras High Court has allowed a plea seeking service tax exemption for police guard charges and escort duties, holding that such activities carried out by the State Police do not fall within the service tax net prior to 1 June 2012.A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer, in a judgment delivered on 12 December 2025, examined service tax liability by referring to the definition of 'person' under the General Clauses Act.They noted that the Service Tax law...
Service Tax Demand Based Solely On IT Returns Is Presumptive: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a service tax demand based solely on differences between income tax and service tax returns is presumptive. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban, on 7 January 2026, set aside a Rs. 7.05 crore service tax demand raised on MM Construction, a civil contractor engaged in road construction and drainage improvement works for municipal and government...
Fixing Hearing Dates Without Virtual Links Violates Natural Justice: CESTAT Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that when an appellate authority fixes hearing dates without providing virtual hearing links, it violates the principles of natural justice and renders the opportunity of hearing a completely nugatory, hollow formality. A Bench comprising Technical Member Rajeev Tandon was hearing an appeal filed by M/s Meera Bux Neelgar against an order passed by the Commissioner (Appeals), Central Excise &...
Supreme Court Stays CESTAT Order Against Prism Johnson In ₹11.25-Crore Service Tax, CENVAT Credit Case
The Supreme Court on Monday, issued notice and granted an interim stay on an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi against listed building materials company Prism Johnson Limited. The tribunal had upheld a service tax demand of about Rs 11.25 crore and denied CENVAT credit of around Rs 7.70 crore in related excise proceedings. A bench comprising Justice J.B. Pardiwala and Justice Vijay Bishnoi passed the order after hearing senior counsel...
Transfer of Development Rights Not Taxable As Service: CESTAT Quashes ₹4.48 Crore Demand on Omaxe
The court reiterated that the transfer of development rights amounts to a transfer of immovable property and does not attract service tax.
No Service Tax On Government-Supplied Water For Industrial Use: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has clarified that service tax is not leviable on water charges paid to the Government of Odisha for the supply of water drawn from a natural source for industrial purposes. The Tribunal ruled that such transactions amount to the supply of water and not the grant of a taxable licensing service. Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, delivered the ruling in an appeal...
Supreme Court Refuses To Entertain Ola Parent ANI's Plea Against Delayed Service Tax Order
The Supreme Court of India has declined to interfere with a Bombay High Court order directing ANI Technologies Private Limited, the parent company of Ola Cabs, to pursue a statutory appeal against a service tax demand. A Bench of the Chief Justice of India Surya Kant and Justice Joymalya Bagchi held that no valid ground was made out to disturb the High Court's decision. The court agreed that the writ petition was rightly not entertained. The dispute relates to a service tax adjudication order...
'Ignoring Precedent Is Judicial Indiscipline': Madras High Court Restores Service Tax Refund
The court reiterated that service tax paid under a mistake of law is refundable and cannot be denied merely on the ground of limitation.
Services For Private Railway Sidings Are Exempt From Tax: Karnataka High Court
The Karnataka High Court on 8 January held that services rendered for the construction of private railway sidings are eligible for service tax exemption. A Division Bench comprising Justice S.G. Pandit and Justice K.V. Aravind was hearing an appeal filed by the Commissioner of Central Tax, Bengaluru East Commissionerate, challenging an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Bench held: “There is no indication in the notification, nor any exception...