Total Turnover Determines Eligibility For Tax Exemption, Not Just Taxable Services: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 April, held that to claim exemption under Notification No. 25/2012-ST, the “turnover” of a business entity includes its entire income and not just taxable services. Therefore, if the total turnover exceeds the prescribed limit, a refund of service tax cannot be granted.A Bench comprising Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the appeal filed by Jal Mahal...

CESTAT Hyderabad Sets Aside Penalty Against Biofuels Company As Service Tax Paid Before SCN

The Customs, Excise and Service Tax Appellate Tribunal at Hyderabad has recently set aside penalties imposed on Universal Biofuels Pvt. Ltd., holding that the tax department should not have issued a show cause notice after the company had already paid the full service tax with interest. A coram of Technical Member A.K. Jyotishi and Judicial Member Angad Prasad observed, “In view of the factual matrix of this appeal, we find that in this case, in the first place, the SCN itself should not have...

Production Work For Broadcaster Liable To Service Tax Even With Copyright Transfer: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April, held that service tax is leviable on the production of a television serial on behalf of a broadcaster under “programme producer's service”, even where the agreement provides for perpetual assignment of copyright. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. dismissed the appeal filed by Sathya Jyothi Films and upheld the service tax demand with interest and...

CESTAT Hyderabad Upholds Service Tax On Services Received From Abroad Classified As IPR

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April, held that services received from abroad classified as Intellectual Property Rights (IPR) services attract service tax.A Bench comprising Technical Member A.K. Jyotish and Judicial Member Angad Prasad partially allowed an appeal by MLR Motors Ltd, allowing the taxpayer to discharge such liability through CENVAT credit for the period prior to 1 July 2012. The Tribunal observed:“the services...

Mere Sale Of Advertising Space Without Creative Input Not Taxable Under Finance Act: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April held that mere sale of advertising space, without any element of designing, conceptualising or preparing advertisements, does not amount to taxable “advertising agency service” under the Finance Act, 1994. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Ajayan T.V. held: “under Section 65(3) of the Finance Act, 1994, service tax applies only where services of making,...

Service Tax Payable On Manpower Supply To Government Hospitals: CESTAT Delhi Upholds ₹64.61 Lakh Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld a service tax demand of Rs 64,61,530 against a firm supplying manpower to Government hospitals. The tribunal held that the appellant was not eligible for the benefit of the reverse charge mechanism under a 2012 notification, as the service recipients were not “business entities registered as a body corporate.” A coram of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

Coronation Park Is a Historical Site, Construction There Is Exempt from Service Tax: CESTAT New Delhi

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has held that Coronation Park, being a historical site of national importance, is eligible for exemption from Service Tax under Notification No. 25/2012-ST. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya heard cross appeals filed by Ajab Singh & Co. and the Revenue against a common Order-in-Original passed by the Commissioner, Rohtak. The Bench...

CESTAT Chennai Rules Transportation Charges Not Taxable In C&F Services Before May 2015

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 1 April, held that reimbursable transportation charges paid to a clearing and forwarding (C&F) agent do not form part of the taxable value of services for the period prior to the 2015 amendment to the Finance Act. A Bench comprising Technical Member M. Ajit Kumar and Judicial Member Mr. Ajayan T.V. partly allowed the appeal filed by Toll India Logistics Pvt. Ltd., clarifying that only the consideration...

Service Tax Leviable Even On Pre-2008 Loading Of Goods For Transportation: Hyderabad CESTAT

On 1 April, the Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that loading of goods onto trucks for delivery to customers constitutes “cargo handling service” (CHS) and is liable to Service Tax even prior to the 2008 amendment. The Bench, comprising Technical Member A.K. Jyotishi and Judicial Member Angad Prasad, was hearing an appeal filed by Agarwal Global Steels Ltd. against an Order-in-Appeal dated 19 November 2012 passed by the Commissioner...

CESTAT Kolkata Sets Aside ₹6.25 Lakh Service Tax, CENVAT Demand Against Advertising Company

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has recently set aside a demand of Rs. 6,25,706 against an advertising company, holding that the extended period of limitation was not invocable and that no excess CENVAT credit was availed. The order was passed by a coram comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, which held that the demand raised by invoking the extended period was unsustainable as there was no suppression of facts...

No Service Tax On Invoices Issued Before Completion Of Work: CESTAT Allahabad

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 30 March held that service tax is not payable on invoices issued before completion of work. A Bench comprising Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar allowed an appeal by APN Infra Pvt. Ltd., observing: “Invoice is required to be issued within 30 days after completion of the service or on receipt of payment towards value of taxable service.” APN Infra, a works contractor,...

No Service Tax On Commission Paid To Foreign Agents For Services Outside India: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March held that no service tax is payable under the reverse charge mechanism on commission paid to foreign agents where the services are rendered and received outside India. A Bench comprising Judicial Member Mr. P.A. Augustian and Technical Member Mrs. R. Bhagya Devi observed: “Since the services are rendered abroad and not received in India, the question of liability to pay service tax under...