Pan Masala, Tobacco Profits Invested In Mutual Funds Not 'Trading In Securities', Service Tax Not Applicable: CESTAT Delhi

The Delhi Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside service tax demand on the activity of investing in Mutual Funds as such activities undertaken by Godfrey Phillips India Limited (Appellant) would be different from 'trading in securities' and cannot be considered as an exempted service in terms of section 66D(e) of the Finance Act. In an order...

Service Tax | No Reverse Charge Liability On Software Maintenance Consumed Abroad; Hotel Expenses Not 'Sponsorship Services': CESTAT Bangalore

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore has held that no Service Tax liability can be applied under the reverse charge mechanism on an Indian branch where the software maintenance services were contracted, received and consumed entirely outside India. The Tribunal further held that payments made towards hotel expenses of guests cannot be treated...

Foreign Markings On Gold Biscuits Not Enough To Prove Smuggling: CESTAT Kolkata Sets Aside Confiscation

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the foreign markings available on the gold biscuits are not sufficient to establish the smuggled nature of the gold. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that the gold recovered from the assessee was neither established to be of foreign origin...

Staff Reimbursement, Training, And Hospital Management In Joint Venture Not Taxable Under Service Tax: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that staff reimbursement, training, and hospital management in a joint venture are not taxable under the service tax. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) stated that the receipts characterised as “royalty”/“management fee” are integrally connected...

Revenue-Sharing With Diagnostic Labs Not 'Business Support Service': CESTAT Sets Aside Service Tax Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has held that revenue-sharing arrangements between a hospital and diagnostic service providers (DSPs) do not amount to provision of “Business Support Service” (BSS) under the Finance Act, 1994, and are therefore not liable to service tax. A Division Bench comprising Justice S.S. Garg (Judicial Member) and...

Zinc EDTA Is Fertiliser, Not A Chemical; Lower Customs Duty Applicable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Zinc EDTA is classifiable as a fertiliser under Customs Tariff Item (CTI) 3105 9090, and not a chemical salt under CTI 29224990 as stated by the revenue.Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) noted that Zinc EDTA contains Nitrogen, which is an essential...

Service Tax Not Payable On Royalty Received For Group Companies' Use Of Copyrighted Logo: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not payable on royalty received for group companies' use of the copyrighted 'TTK' Logo founded by T.T. Krishnamachari & Co. (assessee). Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) examined whether the demand of service for the 'TTK' logo of the...

Mere Paper Trail Or Endorsed Bills Of Entry Without Actual Movement Of Goods Not Enough To Claim CENVAT Credit: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere paper trail or endorsed bills of entry without actual movement of goods is not enough to claim CENVAT (Central Value Added Tax) Credit. Vasa Seshagiri Rao (Technical Member) opined that mere creation of paperwork or paper trail to indicate movement of goods, or mere...

Customs | Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that reassessment of Bills of Entry cannot be sought at a belated stage after clearance of goods merely to claim refund on the basis of a favourable Supreme Court judgment delivered in another assessee's case. A Division Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban...

Sales Tax Discharged Through NPV Under State Incentive Scheme Cannot Be Added Back To Excise Transaction Value: CESTAT Mumbai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has held that sales tax deferred under a State incentive scheme and subsequently discharged by payment of its Net Present Value (NPV) cannot be treated as “sales tax not paid” so as to be added back to the transaction value for levy of central excise duty. A Division Bench comprising C.J. Mathew (Technical...

Construction Of School & College Buildings Between 2008-2012 Not Taxable As Commercial Or Industrial Construction Service: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the construction of school and college buildings during 2008-2012 is not taxable as commercial or industrial construction service. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the construction of buildings for educational institutions, such...

Service Tax Cannot Be Levied On Rent-A-Cab Services Provided To SEZ Units: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax cannot be levied on rent-a-cab services provided to Special Economic Zone (SEZ) units as per the overriding effect under Section 51 of the SEZ Act (The Special Economic Zones Act, 2005). Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member) observed that...