“Commission” Is distinguishable From “Incentive”, No Service Tax Can Be Levied On “Incentive”: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on “incentives.”.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the amount received as “commission” is distinguishable from the amount received as „incentive for the simple reason that “commission” has...

Printing Activity Does Not Amount To 'Manufacture', Excise Duty Demand Unsustainable: CESTAT

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of printing done by the appellant does not amount to 'manufacture', so the demand for excise duty, interest, and the penalties imposed cannot be sustained. The bench of Sulekha Beevi. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the activity of...

Indirect Tax Cases Weekly Round-Up: 3 March To 9 March 2024

Delhi High Court Delhi High Court Directs GST Dept. To Pay 6% Interest For Delayed IGST Refund Case Title: Raghav Ventures Versus Commissioner Of Delhi Goods & Services Tax The Delhi High Court has directed the GST department to pay 6% interest on delayed IGST refund. Failure To Consider Reply On Merits; Delhi High Court Quashes GST Demand Against...

Service Tax Can't Be Fastened Without Identifying Specific Service Provided And Consideration Received: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax cannot be fastened without identifying the specific service provided and consideration received or to be received.The bench of Justice Dilip Gupta (President) and P. Anjani Kumar (Technical Member) has observed that in demanding the service tax, the twin conditions, i.e., identification...

MRP Based Assessment Is Applicable Only To Mineral Water, Aerated Water And Not To Packaged Drinking Water: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that MRP-based assessment is applicable only to mineral water and aerated water and not to packaged drinking water.The bench of Sulekha Beevi C.S. (Judicial Member), and Vasa Seshagiri Rao (Technical Member) has observed that packaged drinking water cannot be assessed under Section 4A of the Central...

Pump For Lotion Dispenser Is Not Scent Spray Or Toilet Spray, Classifiable Under CTH 84248990: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Pump for Lotion Dispenser is held to be covered under CTH 84248990, being the pumps meant not only for displacing the liquid or lotion but for simultaneously dispersing the same.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has held that Section Note 8424...

Balloons Used For Decorations Outside The Purview Of Requirement To Satisfy BIS Registration, CESTAT Set Aside Confiscation Order

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the order passed by the original authority confiscating the goods and directing their re-export.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the balloons used for decorations are outside the purview of the requirement to satisfy...

Indirect Tax Cases Weekly Round-Up: 25 February To 3 March 2024

Delhi High Court Delhi High Court Quashes SCN & Order Lacking Reasons For Retrospective Cancellation Of GST Registration Case Title: Apshara Garments Pvt. Ltd Versus Commissioner Of Delhi Goods And Service Tax The Delhi High Court has quashed the show cause notice, which was lacking reasons for retrospective cancellation of GST registration. 'Cash' Excluded...

Information From ITR/26AS Can't Be Sole Basis For Service Tax Demands: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand was made on the basis of third-party data, i.e., amounts reflected in income tax returns and in Form 26AS, which is not sustainable. The bench of P. Anjani Kumar (Technical Member) has observed that the exigibility of service tax depends on the service provider,...

Service Recipient In India Not Liable To Pay Service Tax When PE Of Foreign Service Provider Exists In India: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that under the purview of Section 66A of the Finance Act, 1994, when a permanent establishment of the foreign service provider exists in India, the recipient of service in India cannot be made liable to pay service tax under the reverse charge mechanism.The bench of Ramesh Nair (Judicial Member) and...

In Absence Of Consignment Note, Services Cannot Be Considered As GTA Services, Service Tax Not Sustainable: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax (CESTAT) has held that in the absence of a consignment note, services cannot be considered GTA services, and the demand for service tax under the category of “goods transport agency” does not sustain. The bench of Binu Tamta (Judicial Member) has observed that the appellant, apart from running the petrol pump outlet, is also providing...

Larger Period Of Limitation Not Applicable Where De-Bonding Was Done After Verification, Issuance Of No Dues Certificate: CESTAT

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that where debonding was done after verification by Central Excise and issuance of a no-dues certificate, the larger period of limitation cannot apply.The bench of Ramesh Nair (Judicial Member) and RAJU (Technical Member) has observed that prior to de-bonding, the factory was visited by the...