Non-Payment Of Service Tax By Sub-Contractor Due To Uncertainity Not Wilful Misstatement Or Fraud: Delhi HC Upholds CESTAT Order

The Delhi High Court has upheld an order of the Customs Excise and Service Tax Appellate Tribunal interdicting the GST Department from invoking extended period of limitation for recovery action against a sub-contractor who did not pay service tax amid confusion as to his liability to pay the same.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta upheld the CESTAT order...

Customs Broker Cannot Be Faulted For Trusting Government-Issued Certificates: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that when a government officer issues a certificate or registration with an address to an exporter, the Customs Broker cannot be faulted for trusting the certificates so issued. The Tribunal opined that “If there are documents issued by the Government Officers which show that the...

Service Tax Not Leviable On Excess Transportation Charges Recovered From Buyers: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on excess transportation charges recovered from the buyers. The activity of arranging transportation of goods till the dealer's premises cannot be classified under “Business Auxiliary Service” and, therefore, no service tax is payable on...

Amount Recovered Towards Penalty Is Not A Service, Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount recovered towards penalty is not a consideration for any activity and as a result there is no 'service'. Therefore, no service tax is leviable. The Bench of Bintu Tamta (Technical) and P.V. Subba Rao (Technical) has observed that, “the amount recovered by the assessee...

'Comedy Of Errors': Delhi HC On CESTAT Passing Contradictory Orders In Appeal Which Did Not Meet Its Pecuniary Jurisdiction

The Delhi High Court recently took a critical view of the Customs Excise And Service Tax Appellate Tribunal at New Delhi for repeatedly passing contradictory orders in an appeal, which should have been dismissed for want of pecuniary jurisdiction.“This order reveals a complete comedy of error…The petition reveals an unfortunate situation wherein the CESTAT while intending to correct an...

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...

No Penalty Leviable If Assessee Fails To Discharge Tax Liability Under Bonafide Belief That No Tax Needed To Be Paid: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if an assessee fails to discharge his tax liability under the bonafide belief that tax did not need to be paid, no penalty is leviable. The Bench of Dr. Rachna Gupta (Judicial) and Ms. Hemambika R. Priya (Technical) has observed that, “even if payment is made through CENVAT for...

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...

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...

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...

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...

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,...