Service Tax Not Leviable On Freight Brokerage: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable on freight brokerage.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the demand is raised on the markup made, which is the profit out of the difference in the value of ocean freight collected by the shipping line...

Tax Cases Weekly Round-Up: 22 To 28 October, 2023

Supreme Court State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay...

TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the TDS amount paid to the Income Tax Department by the appellant from his own account cannot form part of the consideration of the service charges paid to the overseas service provider, and service tax is not payable.The bench of D. M. Misra (Judicial Member) and Pullela Nageswara Rao...

No Service Tax Payable On Bank Guarantee Provided To Group Of Company: CESTAT

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is leviable on the corporate guarantee provided by the appellant/assessee to various banks/financial institutions.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that there is no consideration insofar as the “corporate guarantee‟...

CESTAT Quashes Service Tax Demand On Liquidated Damages Against BHEL

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax on liquidated damages against Bharat Heavy Electricals Limited (BHEL).The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has set aside the demand for service tax on liquidated damages.The appellant/assessee is paying service tax under forward charge on...

Accumulated CENVAT Credit Of EOU Unit Can Be Transferred To DTA Unit After Exit Of EOU Status: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the accumulated CENVAT credit of export-oriented units (EOU) can be transferred to the Domestic Tariff Area (DTA) Unit after the exit of EOU status.The bench of Sulekha Beevic (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the unit has become a DTA after exiting from...

Physician Samples Distributed Free Of Cost By Medicament Manufacturer, Excise Duty Payable On Transaction Value: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples are not sold by affixing the MRP on them; the same has to be distributed free of charge by the medication manufacturer. In those circumstances, the excise duty is payable on transaction value.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has...

CESTAT Quashes Service Tax Demand On Transport Of Goods With Loading And Shifting From Private Railway Siding To Stacking Yard

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the transport of goods with loading and shifting from private railway sidings to stacking yards.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) observed that the main activity of the assessee or appellant is the transportation of materials,...

Tax Cases Weekly Round-Up: 15 To 21 October, 2023

Supreme Court U.P. Trade Tax Act | ‘Tinted Glass’ To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from ‘Plain Glass’: Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that ‘Tinted Glass Sheet’ is different from ‘Plain Glass sheet’ and...

CESTAT Allows Cenvat Credit On Waste Treatment Services While Manufacturing Final Product

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit on waste treatment services for the factory's waste treatment arising out of the manufacturing of the final product.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the waste treatment service received by the appellant from Bharuch...

Mere Acceptance Of Re-Assessed Value And Payment By Assessee Not Be Sufficient To Confirm Allegations Of Under Valuation: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere acceptance of the re-assessed value and payment by the assessee will not be sufficient to confirm the allegations of undervaluation.The bench of Ravana Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) observed that to avoid any delay and demurrage charges, in case the consignment...

Hindustan Coca Cola Did Not Recover Excise Duty From Their Customers, Is Not Hit By The Bar Of Unjust Enrichment: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hindustan Coca-Cola did not recover excise duty from their customers and is not hit by the bar of unjust enrichment.The bench of Ajay Sharma (Judicial Member) has observed that when duty has been paid during the investigation at the insistence of the department post-clearance of the goods,...