Service Tax Not Payable On Royalty Received For Group Companies' Use Of Copyrighted Logo: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on royalty received for group companies' use of the copyrighted 'TTK' Logo founded by T.T. Krishnamachari & Co. (assessee). Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) examined whether the demand of service for the 'TTK' logo of the assessee used by its group companies under Intellectual Property Rights service is tenable. In the case...

Service Tax Cannot Be Levied On Rent-A-Cab Services Provided To SEZ Units: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax cannot be levied on rent-a-cab services provided to Special Economic Zone (SEZ) units as per the overriding effect under Section 51 of the SEZ Act (The Special Economic Zones Act, 2005). Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) observed that the SEZ Act is a self-contained Act which provides exemptions on taxes, duties, cess, drawbacks and...

Meter Reading, Billing & Disconnection Services Are Ancillary To Electricity Distribution; Exempt From Service Tax: CESTAT Allahabad

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services, such as meter reading, billing, and connection/disconnection of electricity, are ancillary services of transmission and distribution of electricity and service tax is not payable for these services. P.K. Choudhary (Judicial Member) examined whether the services such as meter reading, collection of revenue, connection and disconnection of electricity supply would be covered under...

Services To Marriott Hotel In Hong Kong Are 'Export Of Services': CESTAT Mumbai Sets Aside Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that services rendered by Marriott Hotels India Pvt. Ltd. to its overseas group entity Marriott Hong Kong qualify as export of services, and therefore cannot be subjected to service tax under the Finance Act, 1994. A Division Bench of Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban allowed three connected appeals filed by Marriott India, and set aside the entire service tax demand, ...

Extended Limitation Cannot Be Invoked Without Proof Of Intent To Evade: CESTAT Delhi Sets Aside Service Tax Demand On Car Parking Charges

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi has held that the extended period of limitation under the proviso to Section 73(1) of the Finance Act, 1994 cannot be invoked in the absence of clear evidence of suppression of facts with intent to evade service tax. A Division Bench comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) allowed the appeal against the order of Commissioner(appeals) filed by the...

No Service Tax On Cost Allocation For Pet-Care Products Of Mars International: CESTAT Hyderabad

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Mars International is not liable to service tax on cost allocations for developing pet-care products. The bench further opined that the arrangement with the group companies did not involve a service provider-service recipient relationship, and therefore, the service is not taxable. ANGAD PRASAD (Judicial Member) and A.K. JYOTISHI (Technical Member) found that the Mars...

Tobacco Transport By Individual Truck Owners Not Goods Transport Agency: CESTAT Quashes Service Tax Demand

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand on Indian Tobacco Traders under the heading Goods Transport Agency (GTA) Service, as tobacco leaves were transported through individual truck owners. In an order dated November 28, 2025 the Bench comprising Mr. A.K. Jyotishi (Technical Member) and Mr. Angad Prasad (Judicial Member) clarified that even if a person had provided Goods Transport Service but has not issued the ...

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...