Procedural Lapse Cannot Be The Basis To Deny Service Tax Refund, Defeating The Object Of SEZ: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the beneficial object of establishing the SEZ tax-free, without any burden of duties, means that the procedural lapse, if any, cannot be the basis to deny the refund.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the general principles...

CESTAT Allows CENVAT Credit Of Service Tax Paid On Corporate Membership Of Club

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Mumbai, has allowed the CENVAT credit of service tax paid on corporate memberships of clubs.The bench of Anil G. Shakkarwar (Technical) has observed that corporate membership of the club is utilized for business meetings and sales meetings, and therefore, for the period prior to April 1, 2011, service tax paid on...

Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings”

The Supreme Court has held that the import of “Engineering Design & Drawings” falls under the category of “design services” under section 65(35b) read with Section 65(105) (zzzzd) of the Finance Act, 1994, and are subject to levy of service tax. On the sole ground that “Engineering Design & Drawings” prepared and supplied by sister company were shown as ‘goods’ under...

Tax Cases Weekly Round-Up: 2 April to 8 April, 2023

Supreme Court Memorandum Issued By The Government To Deduct 4% TDS Is Not Ultra Vires To Tripura Sales Tax Act: Supreme Court Case Title: The State Of Tripura Versus Chandan Deb Citation: 2023 LiveLaw (SC) 280 The Supreme Court has held that the liability to pay the tax shall be on the transferor who transfers the right to use any goods as per proviso to Section 3(1) read...

Cenvat Credit Available On Books Of Account Cannot Be Rejected Without Following Due Procedure: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that unless CENVAT Credit availed by the appellant has not been recovered by way of the issue of a show cause notice invoking Rule 14 of the CENVAT Credit Rules, 2004, CENVAT Credit available on the books of account cannot be rejected when it is accumulated on account of export of service.The...

Breast Pump Is Not A Medical Device, Classifiable Under CTH 39269090: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that breast pumps have nothing to do with any medical or surgical procedures and are not used by any medical practitioner.The two-member bench of Binu Tamta (Judicial Member) and P V Subba Rao (Technical Member) has observed that the manual breast pumps are classifiable under CTH...

Tax Cases Weekly Round-Up: 19 March To 25 March 2023

Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what...

Amount Deposited In The Personal Ledger Account Until It Is Not Debited Towards Duties Is Property Of The Assessee: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited in the Personal Ledger Account (PLA) until such time as it is not debited towards duties is the property of the appellant.The bench of Anil G. Shakkarwar (Technical Member) has observed that the amount deposited in PLA is an advance kept by the assesses with the exchequer,...

Central Excise Duty Not Payable On Capital Subsidy Received From State Government In Form Of Sales Tax Challan 37B: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that central excise duty is not payable on capital subsidies received from the state government in the form of sales tax challan 37b.The bench of Justice Dilip Gupta (President) has observed that capital subsidy received from the state government in the form of Sales Tax Challan 37B and...

Architect Service, Telephone Expenses For Construction Of Hotel Are Input Services: CESTAT Allows Cenvat Credit On Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Tribunal (CESTAT) has allowed the Cenvat Credit on Service Tax paid on architect services; telephone expenses, etc. for construction of hotel are input services.The bench of Anil G. Shakkarwar (Technical Member) has observed that CENVAT Credit on input services used to bring immovable property into existence is eligible for...

CESTAT Allows Cenvat Credit Of Service Tax Paid On Services Of Toilets Located In Port User Building

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit of service tax paid on services of toilets located in port-user buildings.The bench of Anil G. Shakkarwar (Technical Member) has observed that the territorial location cannot decide the admissibility of CENVAT credit under the provisions of Rule 2(l) of the CENVAT Credit Rules,...

Mere NBFC Registration Not Enough Under Provision Of Service Tax For Levy: CESTAT

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere registration as an NBFC is not enough under the provision of service tax to levy.The two-member bench of Anil Choudhary (judicial member) and P. V. Subba Rao (technical member) has observed that the service provider should be both a company and have the principle business of...