CESTAT Chennai Holds Sub-Contractor Not An Independent GTA, Sets Aside ₹90 Lakh Service Tax Demand

On 2 June, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a service tax demand of Rs.90.26 lakh against Vinoth Shipping Services, holding that a sub-contractor who only arranges transportation for a principal contractor cannot be treated as an independent Goods Transport Agency (GTA) liable to tax under the reverse charge mechanism. Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. allowed the appeal and quashed the demand,...

Individual Villas In Gated Communities Not Residential Complexes For Service Tax: CESTAT Chennai

A gated community comprising individual villas on separate plots does not become a "residential complex" for service tax purposes merely because it has a common project identity and shared amenities, the Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held.A bench of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar passed the ruling while allowing the appeal filed by Green Avenue Homes & Gardens and setting aside a service tax demand of...

CESTAT Chandigarh Holds Rent Paid For Advertising Walls Includible In Taxable Value Of Advertising Services

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has partly allowed a batch of appeals filed by Punjab Advertising Co. It held that rent paid for walls used to display advertisements formed part of the taxable value of the advertising services provided by it. At the same time, it held that the value of printed flex material supplied by Sonia Plastics could not be included in the value of the taxable service. The decision was delivered by a division bench...

Service Of Order On Representative Authorized To Appear Before Excise Department Is Valid: CESTAT Bengaluru

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), by a majority ruling, has held that when an adjudication order is received by an authorized representative of an assessee, it amounts to valid service under Section 37C of the Central Excise Act, 1944. The Tribunal held that the limitation period for filing an appeal begins from the date the representative receives the order. The case arose from a refund claim filed by Simplilearn Solutions Pvt. Ltd. under...

CESTAT Chennai Quashes ₹1.59 Crore Service Tax Demand Against RRB Energy Over Foreign Technology Agreements

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Chennai has set aside a ₹1.59 crore service tax demand raised against RRB Energy Ltd on payments made to overseas entities for technology transfer and wind turbine development services.The tribunal held that the department failed to establish that the transactions were taxable as Intellectual Property Service or Consulting Engineering Services. A coram of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar passed...

Statutory CAMPA Deposits Not Consideration For Taxable Service Under Finance Act: CESTAT New Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, on 25 May held that mandatory Net Present Value (NPV) deposits made into the Compensatory Afforestation Fund (CAMPA) for obtaining forest clearance cannot be treated as consideration for a taxable service under the Finance Act, 1994. Judicial Member Ajay Sharma and Technical Member P.V. Subba Rao allowed the appeal filed by Chhattisgarh State Power Transmission Company Ltd. and set aside a...

Service Tax Demand Based Solely On Third-Party TDS, ITR Data Unsustainable Without Inquiry: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently held that the tax department cannot sustain a service tax demand by invoking the extended limitation period solely on the basis of discrepancies between service tax returns and third-party TDS/ITR data. The tribunal held the department must independently verify whether taxable services were actually rendered before raising such a demand. It accordingly set aside a ₹7.67 lakh demand against Vikash...

WhatsApp Service of SCN Not Recognised Under Central Excise Law: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, on Monday held that service of a show cause notice through WhatsApp is not a legally recognised mode of service under the Central Excise Act. It set aside a service tax demand of ₹2.28 lakh raised against a person engaged in services relating to sale of advertisement space in print media, also finding that the bulk of the demand was time-barred and the balance unsustainable for want of evidence of fraud or wilful...

CESTAT Delhi Sets Aside ₹3.07 Crore Service Tax Demand, Upholds Cenvat Credit On Running Bills

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a service tax demand of more than ₹3.07 crore against Resident Engineer, Rajasthan Housing Board, along with interest and penalties, in a dispute over availment of Cenvat credit on running account bills and measurement books. A bench of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya held that the extended limitation period could not be invoked and that credit could not be denied where...

67% Service Tax Abatement Cannot Be Denied For Omission In ST-3 Returns: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 May held that substantive benefit of 67% abatement under Notification No. 1/2006-ST cannot be denied merely because the taxpayer failed to claim the benefit in its ST-3 returns, particularly when the record admitted use of materials in execution of construction services. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan set aside the service tax demand, interest and penalty imposed on Singh...

Exporter Can't Be Denied CENVAT Credit Solely For Lack Of Service Tax Registration: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax registration is not a pre-condition for taking CENVAT credit where a taxpayer was exclusively engaged in the export of services and not liable to pay service tax. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi held a plain reading of the statutory framework did not support the department's stand that such credit could be denied solely because the taxpayer...

CESTAT Chandigarh Holds Credit Card Cashback Incentives Not Taxable, Upholds Relief To Tek Travels

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 14 May held that cashback incentives received from banks on the use of commercial credit cards for airline ticket bookings do not constitute consideration for any taxable service under the Finance Act, 1994. Judicial Member S.S. Garg and P. Technical Member Anjani Kumar upheld the Commissioner's order dropping the service tax demand of Rs. 8.03 crore raised against Tek Travels Pvt. Ltd. on cashback...