Civil Work Contract Not Manpower Supply Service Merely Because Contractor Deploys Own Workers: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that civil work billed according to the work performed could not be treated as “Manpower Service” where the contractor's billing was not based on the number of workers or man-days deployed. The tribunal found that the consideration was linked to the civil work carried out at the railway siding, rather than the manpower deployed.“From the above Work Order, we find that the service provider is not charging any amount...

Providing Access To Government Data Through Its Portal Not OIDAR Service: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside service tax demands against MP Online Ltd., holding that the company did not provide Online Information and Database Access or Retrieval (OIDAR) services merely by operating a portal through which Madhya Pradesh Government data could be accessed.The Bench of Officiating President Dr. Rachna Gupta and Technical Member P.V. Subba Rao held that MP Online only provided a network through which government data...

Appeal Can't Be Rejected For Want Of Pre-Deposit Proof When Order Itself Records Payment: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 October held that an appeal cannot be rejected for non-production of proof of mandatory pre-deposit when the appellate authority itself has recorded that the required amount was deposited. A Bench of Judicial Member Ajay Sharma and Technical Member M.M. Parthiban set aside an order rejecting an appeal filed by Amsons Tours & Travels Pvt Ltd and remanded the matter to the Commissioner (Appeals) for fresh...

CENVAT Credit On Reverse Charge Service Tax To Be Refunded In Cash Under CGST Act: CESTAT Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that any CENVAT credit accruing to Northern Coalfields Ltd. on payment of service tax under the reverse charge mechanism has to be refunded in cash under Section 142 of the CGST Act after the GST regime came into force.The ruling came in a batch of five appeals filed by Northern Coalfields against service tax demands on payments made to the Madhya Pradesh government towards Rural Infrastructure and Road...

CESTAT Kolkata Sets Aside ₹70.45 Lakh Service Tax Demand On Government Grants To Indian Chamber Of Commerce

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has set aside a ₹70.45 lakh Service Tax demand on grants received by the Indian Chamber of Commerce (ICC) from Central and State Governments. The tribunal held that the grants were not consideration for providing a taxable service and were more in the nature of reimbursement. The bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan found no evidence that ICC provided “Business Exhibition...

CESTAT Allahabad Says Revenue Can't Retain Tax Paid By Mistake, Orders ₹36.92 Lakh Refund To SAF Yeast

On 1 October, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that tax paid by mistake on an exempt service cannot be retained by the Revenue. Judicial Member P.K. Choudhary directed the Revenue to refund Rs. 36,92,166 to SAF Yeast Company Pvt. Ltd. with 12% annual interest from the respective dates of deposit until payment. It also directed that the refund be made within three months. The Tribunal observed: “The Revenue has no authority to retain...

Inadmissible Electronic Data, Computer Printouts Cannot Determine Excise Duty Liability: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that electronic data and computer printouts cannot form the basis for determining Central Excise duty liability unless the statutory requirements for their admissibility are met.The tribunal discarded electronic records relied upon to quantify alleged clandestine manufacture and removal of TMT bars by Sri Kamalaganapathy Steel Rolling Mills Ltd. It set aside the order to the extent that the demand was quantified...

CESTAT Upholds Service Tax On ₹12.66 Lakh JMRC Payment To Chandpole Bazaar Association

On 28 September, the Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the service tax liability on Rs. 12.66 lakh received by Chandpole Bazaar Vyapaar Mandal Samiti from Jaipur Metro Rail Corporation (JMRC) towards publicity and advertisement activities during Diwali celebrations. A Bench comprising Officiating President Rachna Gupta and Technical Member P.V. Subba Rao upheld the taxability of the amount while setting aside the Commissioner (Appeals),...

Indian Exporter Not Liable To Pay Service Tax Under Reverse Charge On Foreign Bank Charges: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that an Indian exporter is not liable to pay service tax under the reverse charge mechanism on charges deducted by foreign banks from export proceeds. The tribunal held that the services were received by the Indian bank, not the exporter, which had no contractual relationship with the foreign bank. A coram comprising Judicial Member Somesh Arora and Technical Member Sanjiv Srivastava allowed Sarda Energy and...

CESTAT Kolkata Sets Aside ₹13.20 Lakh Service Tax Demand On Restaurant Over Revenue-Sharing Arrangement

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹13.20 lakh service tax demand on a Kolkata-based restaurant.It held that the amounts received under a revenue-sharing arrangement with a caterer were not consideration for providing Business Support Services.The bench comprising Justice Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) held that sales incentives received from distributors of alcoholic beverages, linked to the...

CESTAT Kolkata Holds Road Construction Services Provided To West Bengal Govt Exempt From Service Tax

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹54.91 lakh service tax demand against a road construction contractor, holding that the services provided to the West Bengal Government were exempt from service tax.The Division Bench comprising Judicial Member Justice R. Muralidhar and Technical Member K. Anpazhakan was hearing an appeal filed by M/s Gouri Construction, a proprietorship concern engaged in construction of roads.The...

Licence Fees Paid By Odisha Beverages Corp To State Government Not Consideration For Service: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that licence fees and additional licence fees paid by Odisha State Beverages Corporation Limited to the Government of Odisha do not constitute consideration for any taxable service.A coram comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan allowed the appeal filed by the state government undertaking. It set aside the service tax demand of ₹53.88 crore, along with interest and penalties.The...