No Intent To Evade Where Reverse Charge Service Tax Was Immediately Available As CENVAT Credit: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that the extended limitation period could not be sustained in a service tax dispute after finding that the assessee had no intention to evade tax because any amount paid under the reverse charge mechanism would have been immediately available as CENVAT credit.On that basis, the tribunal set aside a service tax demand raised by invoking the extended limitation period. A division bench of Judicial Member Dr....

CESTAT Chandigarh Holds Mohali Municipal Corporation Not 'Person' Under Finance Act, Quashes Tax Demand

On 1 July, the Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside service tax demands raised against the Mohali Municipal Corporation, on revenue earned from advertisements, holding that a Municipal Corporation was not covered within the term “person” under the Finance Act, 1994 during the relevant period. A Bench comprising Judicial Member S. S. Garg and Technical Member P. Anjani Kumar held that the Municipal Corporation, being a sovereign local...

One-Year Limitation Under Finance Act, 1994 Notifications Does Not Apply To SEZ Refund Claims: CESTAT Chandigarh

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed Nokia Solutions and Networks India Pvt. Ltd.'s appeal against the rejection of its service tax refund claim. It held that notifications issued under the Finance Act, 1994 cannot impose restrictions on Special Economic Zone (SEZ) units that are not prescribed under the SEZ Rules. The bench of Judicial Member S. S. Garg and Technical Member P. Anjani Kumar observed, "the Notification issued under...

Suppression In ST-3 Returns Justifies Extended Limitation And Statutory Penalty: CESTAT Allahabad

On 2 June, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that suppression of the actual value of taxable services in ST-3 returns justifies a service tax demand based on mismatch with Income Tax Returns (ITR). Technical Member Sanjiv Srivastava held that such suppression warrants invocation of the extended period of limitation and imposition of penalty and dismissed the appeal filed by Jain & Company against the demand of service tax, interest,...

CESTAT Hyderabad Rejects Exporter's Service Tax Rebate Claim Filed Beyond One Year From Let Export Order

The Hyderabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a service tax rebate claim filed more than one year after the Let Export Order (LEO) is barred by limitation under a 2012 government notification governing export rebates. The tribunal ruled that the notification prescribes its own limitation period. It cannot be extended by relying on the general refund provisions of the Central Excise Act. A bench of Judicial Member Angad Prasad and...

CESTAT Mumbai Sets Aside Service Tax Demand Upheld Under Taxable Category Not Mentioned In Show Cause Notice

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted relief to a taxpayer by setting aside a service tax demand. The tribunal held that once the Commissioner (Appeals) concluded that the services did not fall under the taxable category alleged in the show cause notice, the appeal ought to have been allowed instead of sustaining the demand under a different taxable entry. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban...

CESTAT New Delhi Holds Sub-Contract Road Work Inherits Exemption, Sets Aside Over ₹35 Lakh Demand

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 30 June held that services relating to public road construction executed as a sub-contractor and construction of independent residential houses were eligible for exemption under Notification No. 25/2012-ST. Judicial Member Binu Tamta and Technical Member P. V. Subba Rao allowed an appeal filed by contractor Harish Chandra Patel and set aside an impugned service tax demand of Rs. 35.14 lakh. The Bench held:...

CESTAT Chandigarh Holds Municipal Multi-Level Parking Not Taxable, Sets Aside ₹1.85 Cr Demand

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 July held that construction of a multi-level parking facility for a municipal corporation does not amount to a commercial activity when undertaken for public welfare and civic use. Judicial Member S.S. Garg and Technical Member P. Anjani Kumar set aside a service tax demand of Rs. 1.85 crore raised against Gautam Builders, and upheld an order of the Commissioner (Appeals). The Bench observed: “as per...

Service Tax Amnesty Declaration Cannot Be Reopened After Statutory Deadline: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that the Service Tax Department cannot reopen a declaration accepted under the Voluntary Compliance Encouragement Scheme (VCES) after the statutory time limit prescribed under the Scheme has expired.VCES, introduced in 2013, was a one-time service tax amnesty scheme that allowed taxpayers to voluntarily disclose and pay unpaid service tax dues from earlier years in return for immunity from...

CESTAT Ahmedabad Quashes Service Tax Demand, Finds Composite H&T Contract Could Not Be Split For GTA Levy

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demands of over ₹51 lakh raised against Central Warehousing Corporation. The tribunal held that the Revenue could not levy service tax under the Goods Transport Agency (GTA) category by splitting a composite handling and transportation (H&T) contract. A bench of Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh allowed the appeals. The dispute arose after...

CESTAT Chennai Deletes ₹10.26 Lakh Service Tax Demand On Mayajaal Over Revenue-Sharing Model

On 29 June, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that amounts retained by Mayajaal Entertainment Ltd. under revenue-sharing arrangements with restaurant and retail operators are not liable to service tax as Business Support Service. Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. allowed the appeal filed by Tvl. Mayajaal Entertainment Ltd. Following its earlier decision in the company's own case, the Tribunal set aside the...

CESTAT Allahabad Grants Cable Services Provider Partial Relief Over Bona Fide Belief That Service Tax Was Not Payable

The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has partly allowed an appeal filed by a cable services provider after finding that it had acted under a bona fide belief that service tax was not applicable in its case. The tribunal set aside the service tax demand and held that the extended limitation period could not be invoked in the circumstances. The single-member tribunal of Judicial Member P. K. Choudhary observed,"The Appellant has acted throughout...