No Service Tax On Income Received From Joint Venture: CESTAT Kolkata Sets Aside ₹5.72 Crore Demand

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an assessee's/partner's share of income from a joint venture is not consideration for any taxable service and therefore not liable to Service Tax. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) observed that the activities undertaken by a partner/co-venturer for the mutual benefit of the partnership/joint venture cannot be regarded as a service rendered by one...

Commission Earned By Indenting Agent To Foreign Group Entities Is 'Export Of Services': CESTAT Mumbai Sets Aside ₹2.77 Crore Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has stated that the commission earned for acting as Indenting agent to its foreign group companies qualifies as 'Export of Services', and therefore is not liable to service tax under the Finance Act, 1994. A Division Bench comprising Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban set aside the ₹2.77 crore service tax demand (along with interest and penalty) confirmed by the Principal...

CESTAT Delhi Quashes Service Tax Demand On Western Geco International's Project Office For Offshore Data Acquisition In Deep Sea

The Principal Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Delhi has set aside service tax demand on offshore seismic survey (data acquisition) by Western Geco International Ltd., Gurugram (project office of Western Geco British Virgin Islands). The Bench comprising of Mr. P.V. Subba Rao (Technical Member) and Ms. Rachna Gupta (Judicial Member) examined if data acquired offshore and processing at the Mumbai project office would constitute two separate...

Free Nights & Food Discounts Offered To Lessor Under Hotel Lease Must Be Included In Gross Taxable Value: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is payable on free room nights and food discounts received in kind under a lease agreement with a hotel. Dr. Rachna Gupta (Judicial Member) was examining whether the complementary nights extended by the lessee to the lessor, along with the respective food discount, are to be considered as part of the gross value/taxable value. In this case, the assessee/appellant owned a...

Service Tax Provisions Under Finance Act Do Not Extend To Jammu & Kashmir: CESTAT Sets Aside ₹4 Crore Demand

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the provisions of service tax under the Finance Act, 1994, do not extend to the State of Jammu & Kashmir, and accordingly set aside a service tax demand of Rs. 4 crores. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) opined that the provision of Chapter V of the Finance Act does not extend to J&K. Once the provisions of the Finance Act are not applicable in...

Black Tea Is Agricultural Produce, Commission Paid To Foreign Agents Not Liable To Service Tax : CESTAT Chennai

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside service tax demand on commission paid to foreign agents for sale of black tea, finding that 'essential characteristic' of agricultural produce is retained. CESTAT Chennai clarified that black tea gets covered by the expression 'in relation to agriculture' appearing in Notification 14/2004-S.T. (as amended) dated September 10, 2004 observes that “Once the black tea is found to be agricultural...

Advance Received Towards Sale Of Land Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount of advance received by the assessee with respect to the sale of land is out of the scope of applicability of the provisions of the Finance Act, and hence, no service tax is leviable. Dr. Rachna Gupta (Judicial Member) and A.K. Jyotishi (Technical Member) stated that the assessee has successfully established that the activity undertaken with reference to the amount in question...

IRCTC's Food Plaza Licenses Not 'Renting Of Immovable Property': CESTAT Quashes ₹2.88 Crore Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently held that the arrangement between Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) and private vendors for operating Food Plazas at railway premises does not amount to 'renting of immovable property' and, thus, does not attract service tax under that category.A two-member coram comprising Judicial Member Binu Tamta and Technical Member P V Subba Rao held that the agreements were not lease...

IRCTC's Licensing For Operation Of Food Plazas Not Liable To Service Tax Under 'Renting Of Immovable Property': CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that IRCTC's (Indian Railway Catering & Tourism Corporation Ltd.) licensing for the operation of food plazas is not liable to service tax under 'renting of immovable property'. The Tribunal observed that the agreement was purely related to the transaction of business whereby the assessee was actually performing the activity of operation of catering and was not providing any service of...

Govt Examination Board Not Liable To Pay Service Tax On Examination Fees Collected From Candidates: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the government examination board is not liable to service tax on examination fees collected from candidates. Binu Tamta (Judicial Member) and Sanjiv Srivastava (Technical Member) stated that the examination fees collected from the candidates appearing for the examination being conducted by the appellant/assessee cannot be considered as consideration for the supply of manpower...

Service Tax Not Leviable On Deposits Made Under Interim Orders: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax can't be levied on deposits made pursuant to interim orders. Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) were dealing with the issue of whether service tax can be levied on the amounts paid or deposited during the pendency of the proceedings before the High Court as per interim orders. In this case, M/s Telefonaktiebolaget LM Ericsson of Switzerland...

Refund Claim On Service Tax For Cancelled Property Bookings Maintainable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that refund claim on service tax for cancelled property bookings maintainable. The Tribunal stated that the assessee had issued credit notes in respect of service which is not rendered to the customers on account of cancellation of the agreement and hence there was no scope of rendering any services on which the service tax could be levied. Binu Tamta (Judicial Member) and P.V. Subba...