SERVICE TAX
Cash Calls By Oil India Are Capital Contributions, Not Taxable Services: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that 'cash calls' collected by Oil India Limited from non-operator members of an unincorporated joint venture for petroleum exploration do not constitute taxable services. As such, contributions are capital contributions and not consideration for any service. A Bench of CESTAT, comprising Ms. Binu Tamta (Judicial Member) and Ms. Hemambika R. Priya (Technical Member), allowed the appeal filed by Oil India...
Assessee Entitled To Discharge Certificate Under Sabka Vishwas Scheme Despite Portal Closure
On 19 January, the Kerala High Court held that the Central tax authorities are legally obliged to issue a discharge certificate under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019, once the assessee has paid the full settlement amount within the prescribed time. The Court clarified that the non-functioning of the online portal cannot justify withholding the certificate. In such an event, the certificate had to be issued manually, establishing that payment under the scheme creates a...
Amazon Data Hosting On Principal-to-Principal Basis Not Liable To Service Tax: CESAT Delhi
The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 January held that data hosting services provided by an Indian entity to an overseas cloud computing service provider on a principal-to-principal basis do not qualify as “intermediary services.” They constitute an export of service, and are therefore not liable to service tax in India. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside service tax demands...
Unrecognised Courses Merely Facilitating Foreign Admission Are Liable To Service Tax: CESTAT Chennai
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that programmes which merely facilitate admission to foreign universities, without conferring a degree recognised under Indian law, are liable to service tax. The Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao while hearing an appeal filed by the International School for Management Studies (ISMS) against the service tax demand held that its course did not lead to a...
Place Of Removal In FOR Sales Cannot Be Presumed As Factory Gate: CESTAT Chennai Reiterates
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the “place of removal” in FOR (Free on Road or Rail) destination sales cannot be mechanically assumed to be the factory gate and must be determined on the basis of facts and contractual terms. The tribunal set aside and remanded a service tax order denying CENVAT credit on outward transportation services after finding that the tax authorities had confirmed the demand without examining...
IAF Runway Resurfacing Covered By Retrospective Service Tax Exemption: CESTAT Delhi Allows Infra Company's Plea
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently set aside the rejection of a service tax refund claimed by G.R. Infraprojects Ltd. for resurfacing works carried out at an Indian Air Force runway. The tribunal held that the retrospective exemption restored by Parliament squarely applied in the instant case. In an order dated January 14, 2026, a coram comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside the orders of...
CESTAT Chennai Upholds Denial Of CENVAT Credit To Loyalty Management Firm, Holds Gift Voucher Supply Is Trading
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled against Accentive (India) Private Limited, a loyalty management company, holding that it cannot retain CENVAT credit on goods and gift vouchers supplied under customer reward programmes because the activity amounts to trading. While the tribunal upheld the tax demands and interest running into crores of rupees, it waived penalties for periods prior to May 14, 2015. A bench of Judicial Member...
Free Materials In Works Contracts Pre-July 2009 Excludible From Service Tax: CESTAT Ahmedabad
On 15 January, the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the value of free materials provided under an indivisible Works Contract cannot be included in taxable value for service tax purposes for contracts executed before 7 July 2009. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Mr. Satendra Vikram Singh set aside the portion of the service tax demand calculated on 933.355 MT of steel, valued at Rs....
CESTAT Mumbai Sets Aside Service Tax Demand Based Only On Service Tax–Income Tax Return Mismatch
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal has set aside a service tax demand that was raised on the basis of a mismatch between income tax returns and ST-3 returns (half-yearly service tax returns filed under the pre-GST regime). The tribunal noted that the demand was confirmed without proper service of notice and without giving the taxpayer an opportunity of hearing The appeal was decided by Technical Member M.M. Parthiban. The tribunal found that the...
Legal Heirs Not Assessees Under Service Tax; Proceedings Abate After Death: Orissa High Court
The Orissa High Court has recently held that legal heirs of an individual service provider cannot be treated as assessees under the service tax law and that proceedings abate upon the assessee's death even if a show cause notice was issued earlier. A Division Bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman set aside a service tax demand raised against the deceased assessee, observing that the Finance Act, 1994, does not authorise the tax department to proceed against legal...
Joint Venture MoU For Sugar Mill Modernisation Not Taxable: CESTAT Chandigarh
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that amounts received by a sugar mill under a co-generation and modernisation Memorandum of Understanding (MoU) cannot be treated as consideration for renting of immovable property and are therefore not liable to service tax. Setting aside a service tax demand of over Rs. 21 lakh, the Bench comprising S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) observed that in the case at...