NIL Value Invoices Can't Disguise Overburden Disposal As Sale To Avoid Service Tax: CESTAT New Delhi

On 20 August, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that lifting and disposal of mining overburden cannot be treated as a sale merely because invoices were issued, where the transaction involved no sale price or consideration. Judicial Member Binu Tamta and Technical Member P.V. Subba Rao found that the arrangement between Northern Core Drilling Pvt. Ltd. and Jindal Saw Ltd. (JSL) involved the provision of a taxable service, upheld the...

CENVAT Credit On Rent-a-Cab Catering Photography Cannot Be Denied For Lack Of Nexus: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 20 August held that CENVAT credit cannot be denied on Rent-a-Cab, Outdoor Catering, Event Management, Cleaning and Photography services merely because they have no nexus with the output services. A Bench comprising Technical Member R. Bhagya Devi partly allowed the appeal filed by Texas Instruments (India) Pvt. Ltd., holding that credit on these services was allowable, while remanding other issues for...

Earth Excavation For Govt Dam Project Is Works Contract, Eligible For Service Tax Exemption: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that earth excavation and site formation work carried out by a sub-contractor for a government dam project qualified as a works contract service, even though the sub-contractor had not actually paid VAT.The Division Bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi held that Capital Housing Projects Pvt. Ltd. was entitled to exemption from service tax under Serial No. 29(h) of Notification...

Foreign University Agent Not 'Intermediary' Without Tripartite Arrangement: CESTAT Chandigarh

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 August held that an overseas education consultant cannot be treated as an “intermediary” merely because it acts as an agent of foreign universities and receives commission from them. A Bench comprising Judicial Member S.S. Garg and Technical Member P. Anjani Kumar, dismissed the Revenue's appeal against Trivedi Overseas Education Services, holding that where there is no tripartite arrangement and only...

DBS Bank Indian Branch's ECB Services To Singapore Office Not 'Intermediary Services': CESTAT Mumbai

On 17 August, the Mumbai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that services provided by DBS Bank's Indian branch to its Singapore head office in connection with External Commercial Borrowings (ECB) cannot be treated as “intermediary services” for levy of service tax. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the Indian branch and DBS Bank Singapore were not two different persons but formed part of the same legal...

Mumbai CESTAT Holds Tata Communications' Transponder Bandwidth Services Are Telecommunication Services

The Mumbai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 August held that transponder bandwidth services received by Tata Communications Limited from foreign satellite service providers constitute telecommunication services and cannot be classified as Business Support Services (BSS). A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban dismissed the Revenue's appeal and upheld the Commissioner's order dropping service tax demands against the...

CESTAT Mumbai Says No Separate Tax On Interchange Fee If Tax Paid On Entire MDR, Grants HDFC Bank Relief

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held on 17 August that service tax cannot be separately demanded on the interchange fee earned by a credit card issuing bank when the bank has already paid service tax on the entire Merchant Discount Rate (MDR). A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban set aside the service tax demands raised against HDFC Bank Ltd., along with interest and penalties, relying on the...

Aircraft 'Dry Lease' Taxable Where Lessor Retains Possession, Effective Control: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that merely calling an aircraft arrangement a “lease” does not mean that possession and effective control have been transferred to the other party. The tribunal found that Orient Flight School retained effective control and legal possession of the aircraft, and upheld the service tax levy on the arrangement as “Supply of Tangible Goods Service.""Though the agreement uses terms like “lease” and “lessee”,...

Discharge Certificate Under Sabka Vishwas Scheme Bars Appeal On Settled Tax Dispute: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that the Revenue cannot continue an appeal concerning a tax dispute after the assessee has settled it under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and received a discharge certificate covering the same matter and period.“Once the statutory authorities themselves accept the declaration and issue discharge certificate, the dispute reaches finality. Neither the assessee nor the Department can...

Later Statutory 10% Pre-Deposit For Appeal Cannot Cure Earlier 50% Pre-Deposit Default: CESTAT Hyderabad

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has held that a later statutory requirement of a 10% pre-deposit could not cure an earlier failure to comply with a 50% deposit condition imposed for pursuing an appeal.The amended Section 35F of the Central Excise Act, 1944, introduced a mandatory 10% pre-deposit from August 6, 2014. Since the appeal had already been dismissed on July 23, 2014 for failure to comply with the 50% condition, the later provision could not...

Service Tax Demand Cannot Go Beyond Show-Cause Notice: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has reiterated that adjudicating and appellate authorities cannot confirm a service tax demand under a category different from the one specified in the show-cause notice. The assessee must be put on notice about the category of taxable service under which the demand is proposed.The bench comprised Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao.The tribunal, relying on earlier decisions, observed,“Once...

CESTAT Delhi Holds Consultancy To Single Client Cannot Be Treated As Intermediary Services

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that consultancy services provided directly to a service recipient cannot be classified as intermediary services merely because the consultancy helps the recipient deal with third parties.The bench comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed that an intermediary arrangement requires three parties. The intermediary must facilitate or arrange the main supply between...