CESTAT Allows Service Tax Refund Claims of Nokia Solutions' Sriperumbudur SEZ Unit

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Nokia Solutions and Networks India Pvt. Ltd. is entitled to a refund of service tax paid on services approved for authorised operations in its Special Economic Zone unit. The appeal was decided by Technical Member Vasa Seshagiri Rao, who set aside the rejection of refund claims totalling Rs 46.20 lakh while upholding the denial of Rs 4,220 linked to invoices raised on the company's Gurgaon unit. ...

Penal Interest On Delayed Loan EMIs Not Liable To Service Tax: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that penal interest charged by banks on delayed or defaulted EMIs cannot be subjected to service tax under the Finance Act, 1994. The tribunal said such charges are not linked to any service offered by banks but flow automatically from a borrower's failure to repay on time. “Penal interest is not a charge levied for any independent activity undertaken by the banks but is a contractual consequence of...

Service Tax Paid by Mistake Not Eligible For Suo Motu Adjustment: CESTAT Chennai In TVS Motor Case

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled against TVS Motor Company Ltd., holding that service tax paid under a mistaken belief of law cannot be adjusted suo motu against future service tax liability in the manner adopted by it. The ruling was delivered by Judicial Member Ajayan T.V., dismissing the appeal filed by TVS Motor against an order confirming a service tax demand of Rs 41.97 lakh along with applicable interest. The tribunal held...

Local Iron Ore Transport Not Taxable As Cargo Handling Service: CESTAT Kolkata

On 9 January, the Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reiterated that that service tax cannot be levied on local transportation of iron ore by classifying it as a “Cargo Handling Service” when the activity is essentially one of transportation. A Bench comprising Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed the appeal filed by M/s Mata Dadhimati Transport and set aside the service tax demand and the equivalent penalty...

Textile Processing Once Classified As Manufacture Can't Be Reclassified As Service: CESTAT Kolkata

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax.Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the Tribunal noted that...

Service Tax: Landscaping, Garden Maintenance Contracts Taxable As Maintenance Services: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that landscaping and garden maintenance services provided under recurring maintenance contracts are classifiable as taxable “management, maintenance or repair services” and are liable to service tax. Dealing with a dispute over the classification of services provided by a plant nursery engaged in maintaining gardens and parks for municipal authorities and corporate entities, the tribunal noted that...

CESTAT Delhi Quashes Service Tax Demand On Charitable Society Running Educational Activities

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed an appeal filed by a charitable society, holding that it cannot be subjected to service tax for educational and community development activities where fees or contributions are collected for charitable purposes, and the society had a bona fide belief it was exempt.A Bench of Judicial Member Binu Tamta and Technical Member Rajeev Tandon set aside Rs. 3.2 crores demand against a charitable society...

Cash Calls By Oil India Are Capital Contributions, Not Taxable Services: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that 'cash calls' collected by Oil India Limited from non-operator members of an unincorporated joint venture for petroleum exploration do not constitute taxable services. As such, contributions are capital contributions and not consideration for any service. A Bench of CESTAT, comprising Ms. Binu Tamta (Judicial Member) and Ms. Hemambika R. Priya (Technical Member), allowed the appeal filed by Oil India...

Amazon Data Hosting On Principal-to-Principal Basis Not Liable To Service Tax: CESAT Delhi

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 January held that data hosting services provided by an Indian entity to an overseas cloud computing service provider on a principal-to-principal basis do not qualify as “intermediary services.” They constitute an export of service, and are therefore not liable to service tax in India. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside service tax demands...

Unrecognised Courses Merely Facilitating Foreign Admission Are Liable To Service Tax: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that programmes which merely facilitate admission to foreign universities, without conferring a degree recognised under Indian law, are liable to service tax. The Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao while hearing an appeal filed by the International School for Management Studies (ISMS) against the service tax demand held that its course did not lead to a...

Place Of Removal In FOR Sales Cannot Be Presumed As Factory Gate: CESTAT Chennai Reiterates

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the “place of removal” in FOR (Free on Road or Rail) destination sales cannot be mechanically assumed to be the factory gate and must be determined on the basis of facts and contractual terms. The tribunal set aside and remanded a service tax order denying CENVAT credit on outward transportation services after finding that the tax authorities had confirmed the demand without examining...

IAF Runway Resurfacing Covered By Retrospective Service Tax Exemption: CESTAT Delhi Allows Infra Company's Plea

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has recently set aside the rejection of a service tax refund claimed by G.R. Infraprojects Ltd. for resurfacing works carried out at an Indian Air Force runway. The tribunal held that the retrospective exemption restored by Parliament squarely applied in the instant case. In an order dated January 14, 2026, a coram comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya set aside the orders of...