Gujarat High Court Denies SVLDRS Benefit For Unquantified Tax Liability Before 30 June 2019 Cut-Off

The Gujarat High Court on 18 June 2026 held that a taxpayer cannot claim benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) merely on the basis of admitting part of its tax liability during investigation, and that the entire tax liability must be quantified on or before the statutory cut-off date of 30 June 2019 for eligibility under the Scheme. A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed the writ petition filed by Planet...

CESTAT Mumbai Sets Aside ₹90,625 Service Tax Demand Over Time-Barred Show Cause Notice

On 25 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a show cause notice issued beyond the prescribed limitation period was invalid, and accordingly set aside a service tax demand of Rs 90,625 raised against the appellant. Judicial Member Dr. Suvendu Kumar Pati allowed the appeal filed by Thakkers Harmony and set aside the order of the Commissioner (Appeals), CGST & Central Excise, Nashik, which had upheld the demand of service tax,...

No Revenue Loss, CESTAT Chennai Declines To Enhance Service Tax Penalty In Wrong Classification Dispute

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed the Service Tax Department's appeal seeking enhancement of penalty against i-Grandee Software Technologies Pvt. Ltd. It held that the dispute primarily arose from the adjustment of tax paid under different taxable categories and found no reason to interfere with the original order. A coram of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao observed, "the adjudicating...

CESTAT Delhi Holds Construction Of Roads Inside Krishi Upaj Mandi Eligible For Service Tax Exemption

Construction of roads within the premises of a Krishi Upaj Mandi is eligible for service tax exemption, while works such as auction platform coverings, boundary walls, check posts and an approach gate are not, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has ruled in a dispute involving a Rajasthan contractor. A bench of Judicial Member Dr. Rachna Gupta and Technical Member P. V. Subba Rao held that roads inside a Krishi Upaj Mandi are meant...

Voyage Charter Agreements Not Taxable As Supply Of Tangible Goods Service: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 25 June set aside a service tax demand of Rs.2.42 crore against Vedanta Ltd., holding that voyage charter agreements entered into for transportation of goods cannot be classified as "Supply of Tangible Goods for Use Service" under the Finance Act, 1994, as they are contracts for carriage of goods and do not involve transfer of possession or effective control of vessels. Technical Member Vasa Seshagiri Rao...

Astronomy Coaching Not Exempt As 'Culture' Under Mega Exemption Notification: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 25 June held that coaching and training services in astronomy do not fall within the expression "culture" under the Mega Exemption Notification and are therefore liable to service tax. Judicial Member Binu Tamta and Technical Member P.V. Subba Rao dismissed the appeal filed by Space Technology and Education Pvt. Ltd., while directing the Department to recalculate the company's tax liability after extending...

CESTAT Kolkata Dismisses Revenue's Appeal Seeking Reversal Of Allahabad Bank's ₹20 Crore CENVAT Credit

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the dropping of a service tax demand of nearly ₹20 crore against Allahabad Bank. It held that the bank had paid the service tax before availing CENVAT credit, even though the corresponding invoices were issued later. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan dismissed the Revenue's appeal after examining the invoices and remittance records.The tribunal observed,"The...

Tax Department Cannot Dictate CENVAT Credit Compliance Method: CESTAT Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that tax authorities cannot compel a taxpayer to adopt a particular method of complying with its obligations under the CENVAT Credit Rules. Setting aside the CENVAT credit and service tax demands, along with the interest and penalties, the tribunal ruled that the choice of compliance rests with the taxpayer. A bench of Officiating President Dr. Rachna Gupta and Technical Member Subba...

CESTAT Bangalore Sets Aside Service Tax Demand On Vacant Land Leased By New Mangalore Port Trust Before July 2010

The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the balance service tax demand raised against New Mangalore Port Trust on lease and licence fees collected from users of vacant land for the period prior to July 1, 2010. A coram of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi partly allowed the appeal filed by the port trust. “In view of the above, we do not find any justification in sustaining the demand prior to...

Service Tax Refund Can't Be Denied Over Wrong Registration Code After Payment: CESTAT Ahmedabad

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has held that "technical book keeping errors" cannot defeat a refund claim where the money has already reached the government exchequer. The tribunal directed the department to refund ₹71.55 lakh to a Surat housing society after finding that the Revenue had treated the residential complex as a single entity while raising the service tax demand but sought to treat it as separate entities while considering the refund. ...

CESTAT Delhi Upholds Service Tax Demand After Missed Amnesty Scheme Deadline, Sets Aside Penalty Citing Pandemic

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld a service tax demand as well as interest against a taxpayer engaged in providing works contract services. It found that the taxpayer did not make the payment required under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 within the prescribed timeline and was therefore not eligible for its benefits. This is despite the fact that the deadline had been extended until June 30, 2020 due to the...

CENVAT Credit On Tippers Can't Be Denied Due To Purchase Before Inclusion As Capital Goods: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit on tippers cannot be denied merely because the vehicles were received before tippers were brought within the definition of capital goods. The tribunal observed that eligibility for credit must be examined when the vehicles are put to use for rendering output services. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed an appeal filed by Libra...