Service Tax Not Leviable On Incentives For Achieving Sales Target: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not leviable on incentives for achieving sales targets.The two-member bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has relied on the decision of the CESTAT in the case of M/s DD Motors vs. Commissioner of Central Excise, Uttar Pradesh,...

Allocation Of Area Development Charges By The State Government Cannot Be Treated As Consideration Towards A Service: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the allocation of area development charges by the state government cannot be treated as consideration for service.The bench of B. R. R. Kumar (Accountant Member) has observed that for a service to be taxable, it is necessary that there be a service provider and service recipient relationship...

No Service Tax Leviable On Construction Of Residential Complexes Prior To 01.07.2010: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax could be levied on the construction of residential complexes prior to July 1, 2010, even when the service is rendered either as a service simpliciter or as a work contract.The bench of P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the...

Service Tax Under RCM Not Payable By Company If Personal Property Rented Out By The Directors To The Company: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax under the Reverse Charge Mechanism (RCM) is not payable by the company if personal property is rented out by the directors to the company.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has noted that the Commissioner (Appeals) assumed that...

Value Of Bought Out Items Supplied Along With Manufactured Goods Cannot Be Included In Assessable Value Of Manufactured Goods: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of bought-out items supplied along with manufactured goods cannot be included in the assessable value of the manufactured goods.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the manufacture of lattice masts is an independent...

Service Tax Exemption On Handling Of Agriculture Produce By A Cargo Handling Agency: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is exempted from the handling of agricultural produce by a cargo handling agency.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has noted that as per Notification No. 10/2002-Service Tax dated. 01.08.2002, the government exempts the taxable...

Credit Of CVD Paid Through Debit In DEPB Scheme Is Admissible: CESTAT Allows Cenvat Credit To Hindustan Zinc

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the Cenvat Credit to Hindustan Zinc and held that credit of CVD paid through debit in the Duty Entitlement Passbook Script (DEPB) Scheme is admissible, and the bills of entry assessed by the customs authorities have not been bifurcated between CVD and Cess.The bench of Ajay Sharma (Judicial Member)...

Reimbursable Expenses Are Not Includible In The Taxable Value Of The Service: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reimbursable expenses are not includible in the taxable value of the service in terms of Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has relied on the decision of the Delhi High Court in the...

Suspension Of The Licence Of Broker Is Not Warranted After The Investigation And Issue Of Show Cause Notice: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that suspension of the license is not warranted after investigation and the issuing of a show cause notice.The bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) has observed that immediate suspension of the customs broker is warranted when there is an apprehension that...

CESTAT Allows Service Tax Refund On Construction Services Of Complex Provided By The Cooperative Housing Society

The Ahmedabad Bench of the Customs, Excise, and Services Tax Appellate Tribunal (CESTAT) has allowed the service tax refund on the construction of complexes provided by the appellant’s cooperative housing society.The bench of Ramesh Nair (judicial member) and C.L. Mahar (technical member) has noted that cooperative societies have not taken the services of a contractor for the construction...

Cricket Player Providing Brand Promotion Services Not Liable To Pay Service Tax: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax on remuneration received by the cricket player from M/s. Nike India Pvt. for brand promotion.The bench of Ramesh Nair (judicial member) and C. L. Mahar (technical member) relied on the decision of the Calcutta High Court in the case of Sourav Ganguly vs. UOI & Others, in which it was...

Freight And Handling Charges Shown Separately In The Invoice Is Not Includable In The Assessable Value Of The Excisable Goods: CESTAT

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that freight and handling charges shown separately in the invoice of the appellant are also not includable in the assessable value of the excisable goods.The two-member bench of Ramesh Nair Member (Judicial) and Raju Member (Technical) has observed that the amount charged as freight and...