Service Tax Fully Exempt For Rural Skill And Vocational Training Under DDU-GKY: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, on 27 February, ruled that training services under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) are exempt from service tax if covered by the applicable notifications. A Bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh, allowed the appeal by Checkmate Services Pvt. Ltd., confirming that providing skill and vocational training to rural youth under DDU-GKY was...

Mere Audit Detection Not Ground To Invoke Extended Limitation Under Finance Act: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi on 9 March, emphasised that the extended period of limitation cannot be invoked in the absence of a specific allegation of fraud, collusion, or suppression of facts. A Bench comprising Judicial Member Ms. Binu Tamta and Technical Member Ms. Hemambika R. Priya, set aside a service tax demand raised against the Rajasthan Housing Board, holding that where the taxpayer had disclosed the availment of CENVAT credit in its...

CESTAT Allows Perrigo Lab's ₹44.72 Lakh CENVAT Credit Refund Denied Over Clerical Invoice Error

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently allowed an appeal filed by Perrigo Laboratories India Pvt. Ltd., holding that part of its refund claim for unutilised CENVAT credit was wrongly rejected due to a clerical discrepancy in invoices. A single-member bench of Judicial Member Dr. Suvendu Kumar Pati set aside the order of the commissioner (appeals), Thane, which had denied a refund of Rs 44.72 lakh on the ground that the original invoice...

Actor Rajinikanth Gets Relief As CESTAT Chennai Sets Aside ₹56.84 Lakh Service Tax Demand On Hotel Lease

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Chennai on Wednesday set aside a service tax demand of about Rs 56.84 lakh against veteran Tamil actor Rajinikanth, holding that renting a building for use as a hotel is excluded from service tax under the Finance Act even if the premises contain facilities such as a restaurant, banquet hall, conference hall, bar, and health club. A bench of Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar observed, "Their presence...

CESTAT Sets Aside Rs 24.96 Lakh Service Tax Demand Against Contractor Based Only On TDS Statement

The Kolkata Bench of CESTAT has set aside a service tax demand of Rs 24.96 lakh against a Chakradharpur contractor, holding that his work for the Railways, exempt subcontracted projects, and construction of single residential units did not attract service tax. The bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that a demand cannot stand if it is based solely on Form 26AS data without corroborative evidence or independent inquiry. Form 26AS is an annual tax...

Service Tax Is Leviable On Repair Services Provided To Kolkata Metro: CESTAT New Delhi

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 26 February, held that repair and maintenance services rendered to the Kolkata Metro Railway are not eligible for tax exemption under the Mega Exemption Notification. A Bench comprising Judicial Member Dr. Rachna Gupta, focussed on whether such services could be treated as exempt railway-related works and whether the Department was justified in invoking the extended period to confirm the service tax demand. ...

CESTAT Delhi Quashes ₹1.81 Crore Service Tax Demand on CII For Overseas Exhibitions

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that fees collected by the Confederation of Indian Industry (CII) from its members for facilitating participation in overseas business exhibitions are not liable to service tax under the category of “Business Exhibition Service”.The bench consists of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, was hearing an appeal filed by Confederation of Indian Industry (appellant) against...

Customs House Agent Services To Foreign Clients Are Export, Service Tax Not Payable: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that Customs House Agent (CHA) services rendered by an international freight forwarder to overseas customers constitute “export of service” and are not liable to service tax. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan heard cross appeals arising from an order passed against Ceva Freight India Pvt. Ltd (taxpayer), an international freight forwarder engaged...

Service Tax Leviable On Infrastructure Support To TCS, Educational Training Exempt: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 18 February, confirmed service tax liability on infrastructure and allied facilities provided to Tata Consultancy Services (TCS) under “Business Support Service”, while setting aside the entire demand for training and educational activities under “Management or Business Consultancy Service”. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided the appeal filed by Kalinga...

Shifting Materials Within Factory Not Taxable As “Cargo Handling Service”: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 February, held that shifting and transportation of materials within factory premises does not fall under the category of "Cargo Handling Service" and therefore no service tax is payable on such activity. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Eastern Transport Agency (taxpayer) against an order passed by the Commissioner of CGST...

CESTAT Kolkata Grants ₹1.45 Crore CENVAT Credit Relief To PwC's Kolkata Service Delivery Arm Despite Invoice Irregularities

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed in a case that CENVAT credit/refund could not have been denied where receipt of services and payment of service tax were undisputed. The bench consists of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided a batch of service tax appeals filed by Price Waterhouse Coopers Service Delivery Centre (Kolkata) Pvt. Ltd., challenging the denial of CENVAT credit and refund...

No Service Tax On Exempt Road, Canal Works Based Solely On TDS Deduction: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 20 February held that mere deduction of TDS and reflection of receipts in Form 26AS cannot determine service tax liability when the underlying activity, i.e., construction of roads and canals for Government authorities, is expressly exempt under the Mega Exemption Notification. A Bench comprising Judicial Member P.K. Choudhary allowed an appeal by Shailja Construction, noting that the entire demand...