CESTAT
CESTAT Delhi Quashes ₹1.81 Crore Service Tax Demand on CII For Overseas Exhibitions
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that fees collected by the Confederation of Indian Industry (CII) from its members for facilitating participation in overseas business exhibitions are not liable to service tax under the category of “Business Exhibition Service”.The bench consists of Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, was hearing an appeal filed by Confederation of Indian Industry (appellant) against...
Customs House Agent Services To Foreign Clients Are Export, Service Tax Not Payable: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that Customs House Agent (CHA) services rendered by an international freight forwarder to overseas customers constitute “export of service” and are not liable to service tax. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan heard cross appeals arising from an order passed against Ceva Freight India Pvt. Ltd (taxpayer), an international freight forwarder engaged...
Service Tax Leviable On Infrastructure Support To TCS, Educational Training Exempt: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 18 February, confirmed service tax liability on infrastructure and allied facilities provided to Tata Consultancy Services (TCS) under “Business Support Service”, while setting aside the entire demand for training and educational activities under “Management or Business Consultancy Service”. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided the appeal filed by Kalinga...
Shifting Materials Within Factory Not Taxable As “Cargo Handling Service”: CESTAT Kolkata
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 February, held that shifting and transportation of materials within factory premises does not fall under the category of "Cargo Handling Service" and therefore no service tax is payable on such activity. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan was hearing an appeal filed by Eastern Transport Agency (taxpayer) against an order passed by the Commissioner of CGST...
CESTAT Kolkata Grants ₹1.45 Crore CENVAT Credit Relief To PwC's Kolkata Service Delivery Arm Despite Invoice Irregularities
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed in a case that CENVAT credit/refund could not have been denied where receipt of services and payment of service tax were undisputed. The bench consists of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, decided a batch of service tax appeals filed by Price Waterhouse Coopers Service Delivery Centre (Kolkata) Pvt. Ltd., challenging the denial of CENVAT credit and refund...
No Service Tax On Exempt Road, Canal Works Based Solely On TDS Deduction: CESTAT Allahabad
The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 20 February held that mere deduction of TDS and reflection of receipts in Form 26AS cannot determine service tax liability when the underlying activity, i.e., construction of roads and canals for Government authorities, is expressly exempt under the Mega Exemption Notification. A Bench comprising Judicial Member P.K. Choudhary allowed an appeal by Shailja Construction, noting that the entire demand...
No Service Tax Payable On Overseas Film Shooting Expenses Under Reverse Charge: CESTAT Kolkata
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently allowed the appeal filed by Shree Venkatesh Films Pvt. Ltd., holding that no service tax is payable under the reverse charge mechanism on expenses incurred in foreign currency for the shooting of films and allied activities carried outside India.The bench, consisting of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, observed that the department had raised the demand merely...
CESTAT Mumbai Rules CENVAT Credit Cannot Be Denied Service Tax Paid By Grindwell Norton Supplier
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 February set aside the denial of Cenvat Credit of Rs. 3,99,183 to Grindwell Norton Ltd., reiterating that once service tax has been paid by the service provider and accepted by the department, it cannot be questioned. A Single Member Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) passed the Final Order, noting that the disputed invoices were raised by the job worker under a belief that the...
CESTAT Kolkata Affirms CBEC Circular, Reiterates Sub-Contractor Independently Liable For Service Tax
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 6 February clarified that after the issuance of CBEC Master Circular No. 96/7/2007-ST dated 23 August 2007, a sub-contractor is independently liable to pay Service Tax on the services rendered by it, even where the main contractor has already discharged the Service Tax liability on the same project. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, was examining the legality of...
CESTAT Quashes Service Tax Demand Against IBM India On Warranty Expense Reimbursements
The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 6 February set aside service tax demands raised against IBM India Pvt. Ltd., holding that reimbursements received from overseas IBM entities towards warranty costs, in the absence of consideration for any service, cannot be taxed under “management, maintenance or repair” service. A Bench comprising Dr. D.M. Misra (Judicial Member) and Mrs. R. Bhagya Devi (Technical Member) passed the order allowing the...
