Salary Is Out Of The Purview Of Service Tax: CESTAT Quashes Service Tax Demand Against Kellogg

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against Kellogg India and held that salary is out of the purview of service tax.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the amount that is unpaid to the employee is salary not paid, and the salary not paid...

PPF Funds Management Service Prior To 10.9.2004 Not Liable To Pay Service Tax: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on the operation of PPF accounts after September 10, 2004.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that the value of services received by a service provider prior to 10.9.2004 in respect of "operation of bank accounts"...

Service Tax Not Payable On Fixed Facility Charges For Providing Liquid Gas Storage Tanks: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on fixed facility charges (FFC) for providing liquid nitrogen gas storage tanks.The bench of Sulekha Beevi (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that FFC are not in the nature of consideration received by the appellant for providing...

No Service Tax Payable On Administrative Charges Received From Coal Mine Companies By Coal Mines PF Organization: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on administrative charges received from coal mine companies by the Coal Mines Provident Fund Organisation.The bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) observed that since there is no service provider-service recipient relationship...

CESTAT Allows Service Tax Refund On Advance Amount Returned To The Buyer, Upon The Cancellation Of The Flats Booking

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed service tax refunds on advance amounts returned to the buyer upon cancellation of the flat booking.The bench of Ajay Sharma (a judicial member) has observed that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it...

Services Rendered By Indian Commission Agent To Foreign Principal Will Qualify As Export Of Service: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services rendered by Indian commission agents to foreign principals will qualify as "export of service.The bench of Justice Dilip Gupta (President), P.A. Augustian (Judicial Member), and C.J. Mathew (Technical Member) has observed that export of services would take place under rule 3(1)(iii)...

Certificates Issued By Qualified Professionals Like CAs Can’t Be Brushed Aside Merely For Lack Of Corroborative Evidence: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that certificates issued by qualified professionals like cost accountants, chartered accountants, and chartered engineers should not be brushed aside merely with the statement that corroborative evidence was not produced.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical...

Manufacturing Without Proper Manufacturing Facilities: CESTAT Upholds Excise Duty Demand, Penalty

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that manufacture and clearances made by the four units availing the benefit of Notification No. 8/2003-CE have to be clubbed together as these units are one and the same. Their operations are under common management/family members and financial control, and they have mutual financial interests...

Accumulated Cenvat Credit Lying Unutilized Does Not Carry Any Interest: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that accumulated CENVAT credit lying unutilized does not carry any interest.The two-member bench of P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that Rule 5 of the CENVAT Credit Rules, 2004 clearly lays down that the assessee is free to take back the credit of...

Profit Made On Transportation Charges Need Not Be Included In The Assessable Value, No Excise Duty Payable: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that profit made on transportation charges need not be included in the assessable value and the excise duty is not leviable.The bench of Sulekha Beevi C.S. (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that excise duty is not a tax on profits but only on the actual value of...

Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excess service tax paid can be adjusted towards service tax liability for the succeeding month or quarter.The bench of Justice Dilip Gupta (President) and P. Anjani Kumar (Technical Member) has observed that the mistake of short or excess payment has occurred due to the newly introduced...

Interest On Delayed Service Tax Refund Payable On Expiry Of 3 Months From Application: CESTAT

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that interest on delayed service tax refunds is payable on the expiration of 3 months from the date of application.The bench of S. S. Garg (Judicial Member) has observed that under Section 11BB of the Act, interest is payable after the expiration of 3 months from the date of receipt of...