Assessee Entitled To CENVAT Credit For Service Tax Paid On GTA Services Used To Transport Goods To Buyer's Premises: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee is entitled to CENVAT credit of the service tax paid on the goods transport agency (GTA) services received by the assessee to transport the goods from its factory to the buyer's premises sold on FOR (free on road) destination basis. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that ““place of removal” shifts to the buyer's ...

Transfer Of License Is “Deemed Sale,” Consideration Received Cannot Be Subjected To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transfer of a license constitutes a “deemed sale” under article 366(29A)(d) of the Constitution and, therefore, any consideration received from it cannot be subjected to service tax. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “…..The consideration received by the assessee on the execution of the License Agreement cannot,...

Once Service Fee Is Refunded By Assessee, Transaction Between Parties No Longer Qualifies As Service & No Service Tax Is Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that once the consideration (service fee) is refunded by the Assessee to the service recipient, the transaction between the two parties no longer qualified as a 'service' and no service tax would be leviable thereupon. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “…the waiver of service fee must be understood as the...

Only Service Recipient, Not Service Provider, Can Claim Credit For Service Tax Paid Under Reverse Charge Mechanism: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that even if service tax is paid under reverse charge mechanism by service recipient, it is the service recipient who can take credit of tax so paid and not service provider. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “……so long as the service tax is paid on a taxable service and such taxable service is an input service, the service ...

No Service Tax Can Be Levied On Rental Agreements In Name Of Individual Partners For Jointly Owned Property: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that rental agreements in the name of an individual partner regarding property jointly held by them are not liable to service tax. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………post 01.07.2012, the firm was not functional, and the rental agreements are in the name of the individual partner, with regard to the property held by...

Payment To Non-Employed Director As Sitting Fees Is Not Salary, Hence Liable To Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made to a non-employed director as director's sitting fees is not in the nature of salary; hence, the director's fees are liable to the levy of Service Tax.The Bench consists of Ramesh Nair (Judicial Member) and Raju (Technical Member), considered the issue of whether the assessee is liable to pay Service Tax under reverse charge mechanism on the Directors remuneration paid to the...

Service Charge Collected By Medical Store In Hospital Covered Under “Health Care Services”, Exempted From Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service charge collected by a medical store in the hospital is covered under “Health Care Services” and are exempted from Service Tax. The Bench of Binu Tamta (Judicial Member) has observed that “medical aid to the patients who are admitted in the hospital, most of the time requires urgent care and treatment without any loss of time and that is the reason for having a medical store...

No Service Tax Can Be Determined Without Clarifying The Category Of Service Under Which The Said Amount Can Be Attributed: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax can be determined without clarifying the category of service under which the said amount can be attributed. Under Section 78 of the Finance Act, 1994, if service tax has not been levied, paid, short-levied, short-paid, or erroneously refunded due to fraud, collusion, willful misstatement, suppression of facts, or contravention with the intent to evade payment, the person...

Preferential Location Charges Charged By Builder Includible In Taxable Value For Service Tax Levy: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the preferential location charges charged by the builder includible in the taxable value of the service tax levy.The bench of P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) have observed that the service is rendered in the context of a location, which does not make it a tax on land within the meaning of Entry 49 of List II. The tax continues to be a tax on the rendering of...

Service Tax Not Payable On Revenue Sharing Arrangement Between Exhibitors & Distributors Of Films: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax (CESTAT) has held that the no service tax is payable on revenue sharing arrangements between exhibitors and distributors of films.The bench of Justice Dilip Gupta (President) and C. J. Mathew (Technical Member) has observed that the theatre owner screens or exhibits a movie that has been provided by the distributor. Such an exhibition is not a support or assistance activity but is an activity of its own accord. The activity cannot fall under...

No Service Tax Payable On Clinical Trial On Drugs Supplied By Foreign Service Recipient: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that no service tax is payable on the activity of clinical trials on the drugs supplied by the foreign service recipient.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the activity of clinical trials on the drugs supplied by the foreign service recipient to the appellant amounts to export of service.During the course of the audit of the appellant's...

Commission Deducted In Sale Invoice To Foreign Buyer Is Not Chargeable To Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the commission deducted in the sale invoice of the appellant to their foreign buyer is not chargeable to service tax.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that there is no contract between the appellant and the foreign-based service provider, even if any arrangement of payment is there between the buyer of the goods and the so-called commission...