High Court
Service Tax Cannot Be Demanded Solely Based On Form 26AS Data Without Inquiry: Gauhati High Court
The Gauhati High Court on 20 February, held that the Revenue Department cannot demand Service Tax from a taxpayer, solely on the basis of information provided in Form 26AS. The Division Bench of Justice Michael Zothankhuma and Justice Shamima Jahan heard an appeal filed by the Principal Commissioner of CGST, Dibrugarh, against a CESTAT Kolkata order that had set aside a service tax demand of Rs. 6,39,09,190 imposed on a contractor. The Bench held: “The show cause notice dated 21.10.2019 and...
No Service Tax Exemption Where Overriding Commission Is Received In INR: Madras High Court
The Madras High Court held that travel agents acting as General Sales Agents (GSAs) for foreign airlines cannot claim service tax exemption as an export of services when their overriding commission is received in Indian Rupees rather than convertible foreign exchange, even if the services are provided to foreign principals. A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer Kumar held that exemption notifications are to be strictly construed, and the condition requiring...
Service Taxability Appeals Lie To Supreme Court, Not High Court: Delhi High Court Reiterates
The Delhi High Court has dismissed a service tax appeal filed by the Revenue, holding that questions relating to taxability fall outside the High Court's appellate jurisdiction under Section 35G of the Central Excise Act, and can be examined only by the Supreme Court.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed, “we have gone through the judgments cited by the counsel for the respondent in the matter of M/S Konark Exim Pvt. Ltd (referred supra). In the said matter,...
Delhi High Court Upholds CESTAT Order Allowing Verification Of Tax Exemption On Services To Foreign Embassies
The Delhi High Court has recently upheld an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) permitting verification of certificates for claiming service tax exemption on services rendered to foreign embassies and diplomatic missions.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul held that no substantial question of law arose from the CESTAT's decision, which had remanded the matter to the adjudicating authority for the limited purpose of...
"Unexplained Delay": Rajasthan High Court Quashes Service Tax Order Passed Nine Years After Show Cause Notices
The Rajasthan High Court has recently set aside a service tax demand raised nearly nine years after issuance of show cause notices, holding that revival of proceedings after prolonged administrative dormancy amounts to an arbitrary exercise of power and defeats the statutory discipline prescribed under the Finance Act. A Division Bench of Justice Arun Monga and Justice Yogendra Kumar Purohit quashed an order dated October 24, 2019 passed by the Joint Commissioner, Central Excise and Goods and...
Bombay High Court Reiterates That Service Tax Is Not Applicable On Legal Services
The Bombay High Court recently allowed a writ petition filed by an advocate, holding that legal services rendered by an advocate are exempted from levy of service tax. On 5 February, a Bench of Justice G.S Kulkarni and Justice Aarti Sathe held that the proceedings were squarely covered by the Court's earlier decision in Advocate Pooja Patil v. Deputy Commissioner. The Court observed: “8. The present proceedings also would stand covered by such notifications and the position in law as held by...
Service Tax On Ocean Freight In CIF Imports Illegal: Karnataka High Court
The Karnataka High Court has held that service tax cannot be levied on ocean freight in imports made on a CIF (Cost, Insurance and Freight) basis, as such services fall outside the scope of the Finance Act, 1994.“The Act itself would be inapplicable to territories other than India and the Executive would not have the power to make rules for territories beyond India and where the events could be described to be extra territorial events i.e., service provided by a foreign exporter and a...
Superintendent Cannot Adjudicate Cases Involving Extended Limitation: Calcutta High Court
The Calcutta High Court on 2 February held that cases that invoke the extended period of limitation are expressly excluded from the adjudicatory powers of a Superintendent, even if the demand falls within their monetary limit. Justice Om Narayan Rai, allowed a writ petition filed by the partners of Radiant Security, challenging an order by which the Superintendent, CGST, demanded service tax of Rs. 72,000 along with education cess and secondary and higher secondary cess, and imposed penalties...
Calcutta High Court Upholds Service Tax On C&F and Transport of Steel, Excludes Bending & Bundling
On 4 February, the Calcutta High Court held that service tax applies to “Clearing and Forwarding” (C&F) services and transport expenses for steel products. The Court clarified that activities such as transporting, storing, forwarding, and record-keeping fall within the scope of C&F services, while bending, bundling, and stock verification of goods do not. A Division Bench of Justices Rajasekhar Mantha and Ajay Kumar Gupta dismissed an appeal by Naresh Kumar & Co., which claimed...
Police Security Services Exempt From Service Tax Prior To June 2012: Madras High Court
The Madras High Court has allowed a plea seeking service tax exemption for police guard charges and escort duties, holding that such activities carried out by the State Police do not fall within the service tax net prior to 1 June 2012.A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer, in a judgment delivered on 12 December 2025, examined service tax liability by referring to the definition of 'person' under the General Clauses Act.They noted that the Service Tax law...
Services For Private Railway Sidings Are Exempt From Tax: Karnataka High Court
The Karnataka High Court on 8 January held that services rendered for the construction of private railway sidings are eligible for service tax exemption. A Division Bench comprising Justice S.G. Pandit and Justice K.V. Aravind was hearing an appeal filed by the Commissioner of Central Tax, Bengaluru East Commissionerate, challenging an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Bench held: “There is no indication in the notification, nor any exception...