Service Tax Payable On Manpower Supply To Government Hospitals: CESTAT Delhi Upholds ₹64.61 Lakh Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld a service tax demand of Rs 64,61,530 against a firm supplying manpower to Government hospitals. The tribunal held that the appellant was not eligible for the benefit of the reverse charge mechanism under a 2012 notification, as the service recipients were not “business entities registered as a body corporate.” A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

Coronation Park Is a Historical Site, Construction There Is Exempt from Service Tax: CESTAT New Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has held that Coronation Park, being a historical site of national importance, is eligible for exemption from Service Tax under Notification No. 25/2012-ST. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya heard cross appeals filed by Ajab Singh & Co. and the Revenue against a common Order-in-Original passed by the Commissioner, Rohtak. The Bench...

CESTAT Chennai Rules Transportation Charges Not Taxable In C&F Services Before May 2015

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 April, held that reimbursable transportation charges paid to a clearing and forwarding (C&F) agent do not form part of the taxable value of services for the period prior to the 2015 amendment to the Finance Act. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Mr. Ajayan T.V. partly allowed the appeal filed by Toll India Logistics Pvt. Ltd., clarifying that only the consideration...

Service Tax Leviable Even On Pre-2008 Loading Of Goods For Transportation: Hyderabad CESTAT

On 1 April, the Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that loading of goods onto trucks for delivery to customers constitutes “cargo handling service” (CHS) and is liable to Service Tax even prior to the 2008 amendment. The Bench, comprising Technical Member A.K. Jyotishi and Judicial Member Angad Prasad, was hearing an appeal filed by Agarwal Global Steels Ltd. against an Order-in-Appeal dated 19 November 2012 passed by the Commissioner...

CESTAT Kolkata Sets Aside ₹6.25 Lakh Service Tax, CENVAT Demand Against Advertising Company

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has recently set aside a demand of Rs. 6,25,706 against an advertising company, holding that the extended period of limitation was not invocable and that no excess CENVAT credit was availed. The order was passed by a coram comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, which held that the demand raised by invoking the extended period was unsustainable as there was no suppression of facts...

No Service Tax On Invoices Issued Before Completion Of Work: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 30 March held that service tax is not payable on invoices issued before completion of work. A Bench comprising Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar allowed an appeal by APN Infra Pvt. Ltd., observing: “Invoice is required to be issued within 30 days after completion of the service or on receipt of payment towards value of taxable service.” APN Infra, a works contractor,...

No Service Tax On Commission Paid To Foreign Agents For Services Outside India: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March held that no service tax is payable under the reverse charge mechanism on commission paid to foreign agents where the services are rendered and received outside India. A Bench comprising Judicial Member Mr. P.A. Augustian and Technical Member Mrs. R. Bhagya Devi observed: “Since the services are rendered abroad and not received in India, the question of liability to pay service tax under...

Transport By Individual Truck Operators Without Consignment Note Not Taxable As GTA: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 24 March held that service tax under the Goods Transport Agency (GTA) category cannot be levied where transportation is undertaken through individual truck operators without issuance of consignment notes.A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Bhagya Devi set aside the demand raised on freight expenses incurred for transportation of iron ore for export by Doddanavar Brothers,...

CESTAT Bangalore Allows SEZ Unit Service Tax Refund On Employee Group Medical, Personal Accident Insurance

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore has set aside the rejection of a service tax refund claim filed by ANZ Support Services India Pvt. Ltd., an SEZ unit, holding that denying refund on the ground that employee group medical and personal accident insurance do not fall within “General Insurance Services” is “absolutely irrelevant” in the facts of the case. A bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi while dealing...

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...