CESTAT
Are Skin & Hair Care Treatments Taxable As Cosmetic Surgery? CESTAT Delhi Seeks Fresh Examination
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 30 January, asked the lower authorities to re-examine whether skin and hair care treatments provided by a clinical establishment qualify as “Cosmetic and Plastic Surgery Services” and are therefore liable to service tax. A Bench comprising Judicial Member Binu Tamta and Technical Member Rajeev Tandon was examining an appeal filed by Trichoderm, a Delhi-based clinical establishment operating under the brand...
Service Tax Demand Based Solely On IT Returns Is Presumptive: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a service tax demand based solely on differences between income tax and service tax returns is presumptive. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban, on 7 January 2026, set aside a Rs. 7.05 crore service tax demand raised on MM Construction, a civil contractor engaged in road construction and drainage improvement works for municipal and government...
Fixing Hearing Dates Without Virtual Links Violates Natural Justice: CESTAT Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that when an appellate authority fixes hearing dates without providing virtual hearing links, it violates the principles of natural justice and renders the opportunity of hearing a completely nugatory, hollow formality. A Bench comprising Technical Member Rajeev Tandon was hearing an appeal filed by M/s Meera Bux Neelgar against an order passed by the Commissioner (Appeals), Central Excise &...
No Service Tax On Government-Supplied Water For Industrial Use: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has clarified that service tax is not leviable on water charges paid to the Government of Odisha for the supply of water drawn from a natural source for industrial purposes. The Tribunal ruled that such transactions amount to the supply of water and not the grant of a taxable licensing service. Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, delivered the ruling in an appeal...
Tax Refund Must Be Determined By Nature of Service, Not Registration Mistake: CESTAT Ahmedabad
The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 23 January, set aside the rejection of a service tax refund claim filed by Dubond Infotech Private Limited, ruling that a clerical error in service tax registration cannot, by itself, defeat a refund claim for exported software development services. A Bench comprising Judicial Member Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh noted that the company had mistakenly obtained...
CESTAT Allows Service Tax Refund Claims of Nokia Solutions' Sriperumbudur SEZ Unit
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Nokia Solutions and Networks India Pvt. Ltd. is entitled to a refund of service tax paid on services approved for authorised operations in its Special Economic Zone unit. The appeal was decided by Technical Member Vasa Seshagiri Rao, who set aside the rejection of refund claims totalling Rs 46.20 lakh while upholding the denial of Rs 4,220 linked to invoices raised on the company's Gurgaon unit. ...
Penal Interest On Delayed Loan EMIs Not Liable To Service Tax: CESTAT Chennai
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that penal interest charged by banks on delayed or defaulted EMIs cannot be subjected to service tax under the Finance Act, 1994. The tribunal said such charges are not linked to any service offered by banks but flow automatically from a borrower's failure to repay on time. “Penal interest is not a charge levied for any independent activity undertaken by the banks but is a contractual consequence of...
Service Tax Paid by Mistake Not Eligible For Suo Motu Adjustment: CESTAT Chennai In TVS Motor Case
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled against TVS Motor Company Ltd., holding that service tax paid under a mistaken belief of law cannot be adjusted suo motu against future service tax liability in the manner adopted by it. The ruling was delivered by Judicial Member Ajayan T.V., dismissing the appeal filed by TVS Motor against an order confirming a service tax demand of Rs 41.97 lakh along with applicable interest. The tribunal held...
Local Iron Ore Transport Not Taxable As Cargo Handling Service: CESTAT Kolkata
On 9 January, the Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reiterated that that service tax cannot be levied on local transportation of iron ore by classifying it as a “Cargo Handling Service” when the activity is essentially one of transportation. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed the appeal filed by M/s Mata Dadhimati Transport and set aside the service tax demand and the equivalent penalty...
Textile Processing Once Classified As Manufacture Can't Be Reclassified As Service: CESTAT Kolkata
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax.Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the Tribunal noted that...
Service Tax: Landscaping, Garden Maintenance Contracts Taxable As Maintenance Services: CESTAT Chennai
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax. Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the tribunal noted that...