CESTAT Chandigarh Holds Municipal Multi-Level Parking Not Taxable, Sets Aside ₹1.85 Cr Demand

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 July held that construction of a multi-level parking facility for a municipal corporation does not amount to a commercial activity when undertaken for public welfare and civic use. Judicial Member S.S. Garg and Technical Member P. Anjani Kumar set aside a service tax demand of Rs. 1.85 crore raised against Gautam Builders, and upheld an order of the Commissioner (Appeals). The Bench observed: “as per...

Service Tax Amnesty Declaration Cannot Be Reopened After Statutory Deadline: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently held that the Service Tax Department cannot reopen a declaration accepted under the Voluntary Compliance Encouragement Scheme (VCES) after the statutory time limit prescribed under the Scheme has expired.VCES, introduced in 2013, was a one-time service tax amnesty scheme that allowed taxpayers to voluntarily disclose and pay unpaid service tax dues from earlier years in return for immunity from...

CESTAT Ahmedabad Quashes Service Tax Demand, Finds Composite H&T Contract Could Not Be Split For GTA Levy

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demands of over ₹51 lakh raised against Central Warehousing Corporation. The tribunal held that the Revenue could not levy service tax under the Goods Transport Agency (GTA) category by splitting a composite handling and transportation (H&T) contract. A bench of Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh allowed the appeals. The dispute arose after...

CESTAT Chennai Deletes ₹10.26 Lakh Service Tax Demand On Mayajaal Over Revenue-Sharing Model

On 29 June, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that amounts retained by Mayajaal Entertainment Ltd. under revenue-sharing arrangements with restaurant and retail operators are not liable to service tax as Business Support Service. Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. allowed the appeal filed by Tvl. Mayajaal Entertainment Ltd. Following its earlier decision in the company's own case, the Tribunal set aside the...

CESTAT Allahabad Grants Cable Services Provider Partial Relief Over Bona Fide Belief That Service Tax Was Not Payable

The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has partly allowed an appeal filed by a cable services provider after finding that it had acted under a bona fide belief that service tax was not applicable in its case. The tribunal set aside the service tax demand and held that the extended limitation period could not be invoked in the circumstances. The single-member tribunal of Judicial Member P. K. Choudhary observed,"The Appellant has acted throughout...

CESTAT Mumbai Sets Aside ₹90,625 Service Tax Demand Over Time-Barred Show Cause Notice

On 25 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a show cause notice issued beyond the prescribed limitation period was invalid, and accordingly set aside a service tax demand of Rs 90,625 raised against the appellant. Judicial Member Dr. Suvendu Kumar Pati allowed the appeal filed by Thakkers Harmony and set aside the order of the Commissioner (Appeals), CGST & Central Excise, Nashik, which had upheld the demand of service tax,...

No Revenue Loss, CESTAT Chennai Declines To Enhance Service Tax Penalty In Wrong Classification Dispute

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed the Service Tax Department's appeal seeking enhancement of penalty against i-Grandee Software Technologies Pvt. Ltd. It held that the dispute primarily arose from the adjustment of tax paid under different taxable categories and found no reason to interfere with the original order. A coram of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao observed, "the adjudicating...

CESTAT Delhi Holds Construction Of Roads Inside Krishi Upaj Mandi Eligible For Service Tax Exemption

Construction of roads within the premises of a Krishi Upaj Mandi is eligible for service tax exemption, while works such as auction platform coverings, boundary walls, check posts and an approach gate are not, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has ruled in a dispute involving a Rajasthan contractor. A bench of Judicial Member Dr. Rachna Gupta and Technical Member P. V. Subba Rao held that roads inside a Krishi Upaj Mandi are meant...

Voyage Charter Agreements Not Taxable As Supply Of Tangible Goods Service: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 25 June set aside a service tax demand of Rs.2.42 crore against Vedanta Ltd., holding that voyage charter agreements entered into for transportation of goods cannot be classified as "Supply of Tangible Goods for Use Service" under the Finance Act, 1994, as they are contracts for carriage of goods and do not involve transfer of possession or effective control of vessels. Technical Member Vasa Seshagiri Rao...

Astronomy Coaching Not Exempt As 'Culture' Under Mega Exemption Notification: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 25 June held that coaching and training services in astronomy do not fall within the expression "culture" under the Mega Exemption Notification and are therefore liable to service tax. Judicial Member Binu Tamta and Technical Member P.V. Subba Rao dismissed the appeal filed by Space Technology and Education Pvt. Ltd., while directing the Department to recalculate the company's tax liability after extending...

CESTAT Kolkata Dismisses Revenue's Appeal Seeking Reversal Of Allahabad Bank's ₹20 Crore CENVAT Credit

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the dropping of a service tax demand of nearly ₹20 crore against Allahabad Bank. It held that the bank had paid the service tax before availing CENVAT credit, even though the corresponding invoices were issued later. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan dismissed the Revenue's appeal after examining the invoices and remittance records.The tribunal observed,"The...

Tax Department Cannot Dictate CENVAT Credit Compliance Method: CESTAT Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that tax authorities cannot compel a taxpayer to adopt a particular method of complying with its obligations under the CENVAT Credit Rules. Setting aside the CENVAT credit and service tax demands, along with the interest and penalties, the tribunal ruled that the choice of compliance rests with the taxpayer. A bench of Officiating President Dr. Rachna Gupta and Technical Member Subba...