Hyderabad CESTAT Holds Unutilised Education Cess Credit Cannot Be Refunded, Rejects ₹22.11 Lakh Claim

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 July held that unutilised Education Cess, Secondary and Higher Education (SHE) Cess and Krishi Kalyan Cess (KKC) lying in the CENVAT credit account as on 30 June 2017 cannot be refunded under Section 142 of the Central Goods and Services Tax (CGST) Act, 2017. Judicial Member Angad Prasad and Technical Member P. Anjani Kumar dismissed the appeal filed by Hexagon Capability Centre India Private Limited...

Non-Recourse Sale Of Future Rent Receivables Not Borrowing Or Interest For TDS Purposes: ITAT Chennai

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) on 6 July held that discounting charges arising from the assignment of future rent receivables on a non-recourse basis cannot be treated as interest under the Income-tax Act, 1961, and therefore do not attract tax deduction at source (TDS) under Section 194A (which requires deduction of tax on interest other than interest on securities). A Single Member Bench comprising Judicial Member R. Muralidhar allowed seven appeals filed by OPC...

CESTAT Bangalore Sets Aside Service Tax Demand Against Hindustan Newsprint Employees Co-operative Bank

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Bangalore, has granted relief to Hindustan Newsprint Employees Co-operative Bank Ltd. in a service tax matter.It observed that reimbursed employee wages and other employment-related benefits cannot be included in the taxable value for service tax under Manpower Recruitment or Supply Agency Service for the period prior to 14 May 2015.The bench comprising Judicial Member P.A. Augustian and Technical Member R....

CESTAT Mumbai Awards ₹50,000 Costs After Holding Department Harassed Taxpayer Over ₹33,373 Pre-Deposit Refund

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has imposed ₹50,000 as compensatory litigation costs on the Department after observing that proceedings over the refund of a mandatory pre-deposit of ₹33,373 appeared to have been unnecessarily initiated and were meant to harass a genuine taxpayer. The tribunal directed the Department to refund the pre-deposit along with statutory interest. A single-member tribunal of Judicial Member Dr. Suvendu Kumar Pati...

CESTAT Mumbai Holds Investment Advice To Overseas Client Is Export, Allows Tata Realty Refund

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 July held that investment advisory services provided by an Indian company to an overseas client qualify as export of service, even if the advice relates to investment opportunities in India. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Tata Realty & Infrastructure Ltd. and held that the company was entitled to refund of accumulated CENVAT credit as the...

CESTAT Allahabad Upholds ₹5.22 Lakh Service Tax Demand, Holds Services To Non-Educational Institutions Not Exempt

The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently upheld a service tax demand of ₹5.22 lakh, along with interest and penalties, against DK Infosolutions Pvt. Ltd. It held that the company was not entitled to claim exemption meant for services provided to educational institutions because its services were rendered to commercial entities. A single-member bench of Technical Member Sanjiv Srivastava dismissed the company's appeal. The tribunal...

CESTAT Kolkata Sets Aside ₹6.25 Lakh Service Tax Demand Based Solely On Annual Income Tax Statement

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹6.25 lakh raised against an assessee after finding that the Department issued a show cause notice solely on the basis of Form 26AS (an income tax statement reflecting tax deducted at source and certain specified financial transactions) without carrying out any independent verification or investigation. The tribunal ultimately quashed the demand on the ground of limitation....

Imported Aluminium Panels Used In Mivan Formwork Not 'Moulds' For CENVAT Credit: CESTAT Bengaluru

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 July held that aluminium panels imported for use in Mivan formwork cannot be treated as “moulds” for availing Cenvat credit merely because they are assembled into mould-like structures after import. Judicial Member P. A. Augustian and Technical Member R. Bhagya Devi allowed the appeal filed by the Revenue against an order granting Cenvat credit to Puravankara Projects Ltd., noting that the goods must be...

Volvo Not Liable To Pay Service Tax On Royalty Paid For Technical Know-How: CESTAT Bangalore

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Bangalore has ruled that Volvo Buses (India) Pvt. Ltd. is not liable to pay service tax on royalty paid to its Swedish parent company for technical know-how under a Technical License Contract Agreement. The tribunal held that there was no material to show the royalty was paid towards any intellectual property right recognised under Indian law. A bench of Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi...

Department Cannot Selectively Recalculate Service Tax On Works Contract Invoices: CESTAT Bengaluru

The Bengaluru Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 3 July held that the Department cannot selectively compute differential service tax on works contract services by accepting taxpayer's valuation methodology for some invoices while rejecting it for others. Judicial Member P. A. Augustian and Technical Member R. Bhagya Devi allowed two appeals and partly allowed another appeal filed by M.N. Associates challenging differential service tax demands raised by the...

No Service Tax On Reimbursement Of Actual Electricity Charges Recovered From Tenants: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reimbursement of actual electricity charges recovered from tenants is not liable to service tax, observing that electricity is "goods" and such recoveries cannot be treated as consideration for a taxable service. The tribunal observed, “Further, eelectricity is specifically recognized as "goods" under the Central Excise Tariff Act and various State VAT laws. Hence reimbursements or collections...

Separately Sold Study Material And Student Fee Waivers Not Taxable To Service Tax: CESTAT New Delhi

The New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 6 July held that coaching institutes do not have to pay Service Tax on the value of study material sold separately or on scholarships and fee concessions granted to students. Service Tax applies only to the coaching fee actually collected from students and not to amounts that the institute never charged or recovered. Judicial Member Binu Tamta and Technical Member P.V. Subba Rao allowed an appeal filed by FIIT JEE...