Tax Department Cannot Dictate CENVAT Credit Compliance Method: CESTAT Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that tax authorities cannot compel a taxpayer to adopt a particular method of complying with its obligations under the CENVAT Credit Rules. Setting aside the CENVAT credit and service tax demands, along with the interest and penalties, the tribunal ruled that the choice of compliance rests with the taxpayer. A bench of Officiating President Dr. Rachna Gupta and Technical Member Subba...

CESTAT Bangalore Sets Aside Service Tax Demand On Vacant Land Leased By New Mangalore Port Trust Before July 2010

The Bangalore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the balance service tax demand raised against New Mangalore Port Trust on lease and licence fees collected from users of vacant land for the period prior to July 1, 2010. A coram of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi partly allowed the appeal filed by the port trust. “In view of the above, we do not find any justification in sustaining the demand prior to...

Service Tax Refund Can't Be Denied Over Wrong Registration Code After Payment: CESTAT Ahmedabad

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has held that "technical book keeping errors" cannot defeat a refund claim where the money has already reached the government exchequer. The tribunal directed the department to refund ₹71.55 lakh to a Surat housing society after finding that the Revenue had treated the residential complex as a single entity while raising the service tax demand but sought to treat it as separate entities while considering the refund. ...

CESTAT Delhi Upholds Service Tax Demand After Missed Amnesty Scheme Deadline, Sets Aside Penalty Citing Pandemic

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld a service tax demand as well as interest against a taxpayer engaged in providing works contract services. It found that the taxpayer did not make the payment required under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 within the prescribed timeline and was therefore not eligible for its benefits. This is despite the fact that the deadline had been extended until June 30, 2020 due to the...

CENVAT Credit On Tippers Can't Be Denied Due To Purchase Before Inclusion As Capital Goods: CESTAT Kolkata

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit on tippers cannot be denied merely because the vehicles were received before tippers were brought within the definition of capital goods. The tribunal observed that eligibility for credit must be examined when the vehicles are put to use for rendering output services. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed an appeal filed by Libra...

CESTAT Chennai Sets Aside Service Tax Demands Against Indian Bank On Limitation Ground

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, granted relief to Indian Bank and held that where transactions are duly recorded in statutory books, and there is no evidence of suppression or intent to evade tax, the larger period of limitation cannot be invoked.The ruling was delivered by a Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao while allowing appeals filed by Indian Bank against service tax demands raised on...

No Service Tax On Pal Promoters' Construction For Police Housing, Tsunami Rehab: CESTAT Chennai

The Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 18 June held that construction services provided to the Tamil Nadu Police Housing Corporation (TNHPCL), Tsunami District Implementation Unit, Pudukkotai (TDIU), and Peoples Development Association (PDA) do not attract service tax, as the projects do not constitute commercial construction activity. Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. allowed appeals filed by Pal Promoters Pvt....

CESTAT Kolkata Sets Aside ₹14.59 Crore Service Tax Demand Against Bihar State Sugar Corporation

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹14.59 crore against Bihar State Sugar Corporation Limited. It held that a show cause notice issued before the insertion of Section 73(2A) of the Finance Act, 1994 could not sustain a demand for the normal period after the extended limitation period was found inapplicable. “Accordingly, we hold that in the present case, the demand even for the normal period does not...

CESTAT Kolkata Quashes ₹2.10 Crore Service Tax Demand On Equipment Rentals After Finding Transfer Of Control

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, has held that an earthmoving equipment manufacturer and lessor was not liable to pay service tax on equipment rental transactions. The Tribunal held that possession and effective control of the equipment had been transferred to customers and that VAT had been paid on the transactions. The ruling was delivered by a Bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan while allowing the appeal filed...

Tour Operator Services Rendered Entirely In Jammu & Kashmir Not Taxable During 2005-10: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that no service tax was payable on tour operator services rendered entirely in Jammu & Kashmir during the period from October 2005 to September 2010. It held that the service tax law in force at the time did not extend to the State. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Heena Tours & Travels. The Bench also dismissed the...

CESTAT Kolkata Quashes Service Tax Demand Based On 'Royalty on Mineral' Entries In Contractors' Records

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has recently set aside service tax demands of about ₹19.26 lakh raised under the reverse charge mechanism against two road and bridge contractors. The tribunal found that the Revenue failed to establish that they had obtained any mining rights or paid royalty pursuant to a mining licence. The decision was delivered by Judicial Member R. Muralidhar, who allowed the appeals filed by J.K. Engicon Private Limited and J.K....

CESTAT Bars Vivisection Of Turnkey Project, Allows CENVAT Credit To L&T

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 12 June held that authorities cannot artificially dissect an integrated turnkey project to deny CENVAT credit, and that the substance of the contractual arrangement must prevail over isolated treatment of individual components. Technical Member A.K. Jyotishi and Judicial Member Angad Prasad allowed the appeal filed by Larsen & Toubro Ltd. (L&T) and set aside a demand of Rs. 2.22 crore along with...