Service Tax Leviable On RIICO And RASMB For Commercial And Industrial Construction Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is a service tax liability on RIICO and RASMB for commercial and industrial construction services. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) was addressing the issue of the tax liability of the service provider providing “Commercial and Industrial Construction Service” to the public authorities. In this case, the assessee/appellant had entered...

Advertising Agency Not Liable To Pay Service Tax On Amount Payable To Media Companies On Behalf Of Their Clients: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the advertising agency being a pure agent is not liable to pay service tax on amount payable to media companies on behalf of their clients. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “The assessee has conceded about their liability to pay service tax on the amount of commission received by them while rendering the advertising agency service to...

Activity Of “Chilling Of Milk” Is A Service, Leviable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that activity of chilling of milk is leviable to service tax. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the activity of chilling of milk during the post negative period amounts to rendering 'services' as defined in section 65B (44) and is therefore, leviable to service tax.” In this case, the assessee/appellant in engaged in...

No Service Tax On Services By Organizer In Respect Of Business Exhibition Held Outside India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on services by organizer in respect of business exhibition held outside India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………the Business Exhibition for which the appellant received services from the foreign agencies, were held outside the taxable territory. Resultantly, the Place of Provision of Services ...

Amount Deposited As Service Tax If Refundable, Should Not Be Treated As Pre-Deposit U/S 35F Central Excise Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount deposited as service tax, if refundable, should not be treated as pre-deposit under Section 35F of Central Excise Act, 1944. “Section 11B provides for refund of duty or service tax. If an amount is already paid as duty or service tax, it is reckoned while computing if any further amount needs to be paid to meet the mandatory requirement of pre-deposit under section 35F. Merely...

Service Tax Is Leviable On Renting Of Immovable Property: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is leviable on renting of immovable property. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has opined that unless the levy of service tax on renting of immovable property service is held to be ultra vires by any constitutional court, it will continue to be a valid levy. The assessee/appellant was registered with the service tax...

Installation & Commissioning Of Goods After Sale Is Not “Works Contracts”; Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that installation and commissioning of goods after sale is not a “works contracts”, hence service tax is not leviable. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “merely because the goods were installed and commissioned after sale, the contract would not become a works contract services.” In this case, the show cause was issued to the...

Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “in absence of any reply or any supporting documents, Legal fees expense incurred by the assessee are expenses towards Legal services. Accordingly, Service Tax on Legal Fee expense incurred by the assessee is upheld.” ...

Service Tax Liability Can't Be Levied On Freight And Cartage Expenses Under GTA Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax liability cannot be levied on freight and cartage expenses under GTA (Good Transport Agency) services. “The said amount/expenses/charges were not paid by the assessee directly to the transporter for transportation of any goods. Thus, the said activity cannot be covered under GTA Services, hence, no service tax liability can be levied on the aforesaid amount/expenses/charges...

Service Tax Not Payable On Commission Received From Foreign Universities For Promoting & Publicizing Business In India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not payable on commission received from foreign universities for promoting and publicizing business in India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “the assessee is held not liable to pay service tax with reference to foreign Consultancy Income i.e. the income received from foreign universities for...

Mark-Up Earned By Purchasing & Selling Cargo Space To Importers/Exporters On Principal-To-Principal Basis Is Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mark-up earned by purchasing and selling cargo space to importers/exporters on principal-to-principal basis in freight business is not liable to service tax as it amounts to trading activity and not provision of service as intermediary. The Bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “when the assessee is acting on a principal to ...

Discounts Received From Manufacturer & Passed On To Customers During Car Sale Doesn't Constitute Service, Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that discounts/incentives received from manufacturer and passed on to customers during car sales constitute sale of goods, not service, hence not liable to service tax. The Bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “sale/target incentive/incentive on sale of vehicles and incentive on sale of spare parts received by assessee, could not be...