Tax Cases Weekly Round-Up: 22 May To 28 May 2022

Supreme Court Case Name: Union of India And Anr. v. M/s. Mohit Minerals Through Director Citation: 2022 LiveLaw (SC) 500 Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (GST) on...

No Service Tax Leviable On Toll Collection, Toll Collector Not A Commission Agent: CESTAT Mumbai

The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that any amount retained by a toll collector while undertaking toll-collection activity does not attract service tax since the said activity does not constitute a service rendered by a commission agent and thus it does not fall within the purview of a 'business auxiliary service' under the...

CESTAT Allows Cenvat Credit On Insurance Services

The Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has allowed the Cenvat credit on insurance services. The appellant/assessee has raised the issue of whether the appellant is entitled to Cenvat credit in respect of input services. Construction services; fee for architectural and structural works for...

CESTAT Allows Cenvat Credit To The Member Of Industries Association Who Received Services And Borne Expenditure

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) has held that the member of an industry association who has received the services and borne the expenditure is entitled to the cenvat credit.The appellant/assessee is a member of the Valia Industries Association. Service provider Shree Rang Services provided...

Indian Company Liable To Service Tax On Secondment Of Employees From Overseas Group Entities As Recipient Of Manpower Supply: Supreme Court

The Supreme Court has held that when the Overseas group companies providing skilled employees, on secondment basis, to its Indian counterparts amounts to supply of manpower services, the Indian company would be considered as service recipient. Therefore, the Indian company is liable to pay service tax on the salaries of the seconded employees reimbursed to the overseas company.While...

Failure Of Customs Broker To Observe Due Diligence Leading To Facilitate Fake Importers: CESTAT Revokes Licence

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) affirmed the revocation of the customs broker's licence because the customs broker failed to conduct due diligence, allowing fake importers to operate.The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) observed that the institution of customs brokers was created...

Proceedings Can't Be Initiated When Excise Duty Was Paid Prior To Issuance Of Show Cause Notice: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.K. Choudhary (Judicial Member) has held that the authorities had no jurisdiction to initiate proceedings as the assessee had paid the excise duty along with the interest prior to the issuance of the show cause notice.The appellant/assessee made clearance of 460 numbers of 'Fish Plate'...

Composition Scheme On Works Contract Cannot Be Denied On The Ground That Service Tax Was Discharged Earlier: CESTAT Bangalore

The Bangalore Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has reiterated that Composition Scheme for payment of Service Tax on Works Contract cannot be denied merely on the ground of discharge of Service Tax under a different head prior to 01.06.2007. The Bench, consisting of members P Dinesha (Judicial Member) and P. Anjani Kumar (Technical Member), held...

No Service Tax Payable On Service Charges Collected By Rajasthan Cooperative Dairy Federation From Milk Unions: CESTAT Delhi

The Delhi Bench of Custom, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that no service tax is payable on the service charges collected by the Rajasthan Cooperative Dairy Federation from the milk unions or district cooperative societies for the services rendered to them. The Bench, consisting of Justice Dilip Gupta (President) and technical member P.V. Subba Rao,...

Galvanised Solar Structure Manufactured And Cleared For Initial Setting Up Of Solar Power Plants Exempted From Excise Duty: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that galvanised solar structures manufactured and cleared for the initial setting up of solar power plants are exempted from excise duty.During an audit, the department noticed that the clearance of galvanised solar structures (module mounting structures and hot dip galvanised structures)...

Compensation Received For Cancellation Of Coal Blocks Under Supreme Court Order, Not Liable To Pay Service Tax: Kolkata CESTAT

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that compensation received under a statute for cancellation of coal blocks/mines vide an order of the Supreme Court, cannot be considered as a taxable service of tolerating a situation and is thus not exigible to Service Tax. The Bench, consisting of members P.K. Choudhary (Judicial Member)...

CESTAT Allows Refund Of CENVAT Credits On Service Tax Paid During GST Regime Under Reverse Charge Mechanism On Import Of Services

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) allowed the refund of CENVAT credits against payment of Service Tax paid during the GST regime under the Reverse Charge Mechanism on the import of services.The appellant/assessee was required to pay service tax under the Reverse Charge Mechanism in...