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...

CESTAT Chennai Quashes ₹2.32 Crore Service Tax Demand On Non-AC Restaurant Sections In Same Establishment

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a service tax demand of ₹2.32 crore against a Coimbatore-based restaurant chain. It held that the chain was not liable to pay service tax on food and beverages served in the physically demarcated non-air-conditioned sections of its establishments. A tribunal comprising Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar allowed the appeals filed by Sree Annapoorna Sree Gowrishankar Hotels Pvt....

Timing Difference In Availment Of CENVAT Credit Not A Ground To Deny Export Refund: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 July, held that refund of accumulated CENVAT credit on export of services cannot be denied merely on the ground that input service credit was availed after the date of the last export invoice of the relevant quarter, so long as the credit is otherwise admissible and remains unutilised. Technical Member Rajeev Tandon allowed all four appeals filed by Andritz Technologies Private Limited and set aside the...

Rent-a-Cab, Air Travel, Hotel Services Qualify As Input Services If Used For Business: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that services such as rent-a-cab, air travel, hotel accommodation, restaurant, telecommunication, insurance and business support services qualify as input services where they are used directly or indirectly for providing output services and are not meant for employees' personal consumption. The tribunal accordingly allowed a refund of unutilised CENVAT credit claimed by Olam Information Services Pvt....

CESTAT Delhi Sets Aside Service Tax Demand, Allows CENVAT Credit For Reverse Charge Payments Before July 2012

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service recipients could use CENVAT credit to discharge service tax under the reverse charge mechanism on imported services before 1 July 2012. It ruled that the restriction barring use of CENVAT credit for payment of service tax where the recipient was liable to pay tax came into force only from 1 July 2012 and could not be applied retrospectively. The tribunal also held that a show cause notice...

No Intent To Evade Where Reverse Charge Service Tax Was Immediately Available As CENVAT Credit: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that the extended limitation period could not be sustained in a service tax dispute after finding that the assessee had no intention to evade tax because any amount paid under the reverse charge mechanism would have been immediately available as CENVAT credit.On that basis, the tribunal set aside a service tax demand raised by invoking the extended limitation period. A division bench of Judicial Member Dr....

CESTAT Chandigarh Holds Mohali Municipal Corporation Not 'Person' Under Finance Act, Quashes Tax Demand

On 1 July, the Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside service tax demands raised against the Mohali Municipal Corporation, on revenue earned from advertisements, holding that a Municipal Corporation was not covered within the term “person” under the Finance Act, 1994 during the relevant period. A Bench comprising Judicial Member S. S. Garg and Technical Member P. Anjani Kumar held that the Municipal Corporation, being a sovereign local...

One-Year Limitation Under Finance Act, 1994 Notifications Does Not Apply To SEZ Refund Claims: CESTAT Chandigarh

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed Nokia Solutions and Networks India Pvt. Ltd.'s appeal against the rejection of its service tax refund claim. It held that notifications issued under the Finance Act, 1994 cannot impose restrictions on Special Economic Zone (SEZ) units that are not prescribed under the SEZ Rules. The bench of Judicial Member S. S. Garg and Technical Member P. Anjani Kumar observed, "the Notification issued under...

Suppression In ST-3 Returns Justifies Extended Limitation And Statutory Penalty: CESTAT Allahabad

On 2 June, the Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that suppression of the actual value of taxable services in ST-3 returns justifies a service tax demand based on mismatch with Income Tax Returns (ITR). Technical Member Sanjiv Srivastava held that such suppression warrants invocation of the extended period of limitation and imposition of penalty and dismissed the appeal filed by Jain & Company against the demand of service tax, interest,...

CESTAT Hyderabad Rejects Exporter's Service Tax Rebate Claim Filed Beyond One Year From Let Export Order

The Hyderabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a service tax rebate claim filed more than one year after the Let Export Order (LEO) is barred by limitation under a 2012 government notification governing export rebates. The tribunal ruled that the notification prescribes its own limitation period. It cannot be extended by relying on the general refund provisions of the Central Excise Act. A bench of Judicial Member Angad Prasad and...

CESTAT Mumbai Sets Aside Service Tax Demand Upheld Under Taxable Category Not Mentioned In Show Cause Notice

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted relief to a taxpayer by setting aside a service tax demand. The tribunal held that once the Commissioner (Appeals) concluded that the services did not fall under the taxable category alleged in the show cause notice, the appeal ought to have been allowed instead of sustaining the demand under a different taxable entry. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban...

CESTAT New Delhi Holds Sub-Contract Road Work Inherits Exemption, Sets Aside Over ₹35 Lakh Demand

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 30 June held that services relating to public road construction executed as a sub-contractor and construction of independent residential houses were eligible for exemption under Notification No. 25/2012-ST. Judicial Member Binu Tamta and Technical Member P. V. Subba Rao allowed an appeal filed by contractor Harish Chandra Patel and set aside an impugned service tax demand of Rs. 35.14 lakh. The Bench held:...