Consultancy Services Rendered To Foreign University/Foreign Group Entity Are Not “Intermediary Services”; Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the consultancy services rendered by the assessee to the foreign university/foreign group entity do not fall under the category of “intermediary services” and the assessee are eligible for the benefit of “export of services”. The Bench of Binu Tamta (Judicial Member) and (Technical Member) has observed that “it may also be appreciated that the final decision of admitting a student is...

Service Tax Chargeable On Commission Received By Distributor From Company On Products Purchased By Sales Group: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax would be chargeable on the commission received by a Distributor from Amway on the products purchased by his sales group. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) observed that “the assessee is an individual, who cannot be faulted if she thought that she was only a dealer; a difference between the purchase price and the sale price or MRP is...

Supply Of Manpower To Five Hotels For Three Years Attracts Service Tax Under “Manpower Recruitment Or Supply Agency Service”: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that supply of manpower to five hotels for a period of nearly three years would clearly attract service tax under the head of “manpower recruitment or supply agency service”. The Bench of Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “In relation to manpower supply to five units on cost recovery basis, the Commissioner noticed that ITC had deputed employees to other...

No Service Tax On Buying Or Selling Of Space In Print Media, Receiving Incentives On Meeting Targets: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on buying or selling of space in print media and receiving incentives on meeting targets. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the assessee cannot have an obligation to the media houses. All that is paid by the media houses is, if the assessee achieves particular target while carrying out its business for its...

Refund Claim For Service Tax Can't Be Made On Transactions Which Took Place Beyond Territorial Jurisdiction Of India: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that refund claim for service tax cannot be claimed on transactions took place beyond the territorial jurisdiction of India. The Bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical) has observed that, “The said claim for refund is in respect of service tax paid by the assessee in respect of transactions that took place beyond the territorial jurisdiction of India...

Service Tax Not Leviable On Excess Transportation Charges Recovered From Buyers: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is not leviable on excess transportation charges recovered from the buyers. The activity of arranging transportation of goods till the dealer's premises cannot be classified under “Business Auxiliary Service” and, therefore, no service tax is payable on transportation related expenses recovered in excess by the assessee from their buyers, stated the Bench of Binu Tamta...

Amount Recovered Towards Penalty Is Not A Service, Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount recovered towards penalty is not a consideration for any activity and as a result there is no 'service'. Therefore, no service tax is leviable. The Bench of Bintu Tamta (Technical) and P.V. Subba Rao (Technical) has observed that, “the amount recovered by the assessee towards penalty is not a consideration for any activity which has been undertaken by the assessee and as a...

Service Tax Leviable On RIICO And RASMB For Commercial And Industrial Construction Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is a service tax liability on RIICO and RASMB for commercial and industrial construction services. The Bench of Dr. Rachna Gupta (Judicial) and Hemambika R. Priya (Technical) was addressing the issue of the tax liability of the service provider providing “Commercial and Industrial Construction Service” to the public authorities. In this case, the assessee/appellant had entered...

Advertising Agency Not Liable To Pay Service Tax On Amount Payable To Media Companies On Behalf Of Their Clients: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the advertising agency being a pure agent is not liable to pay service tax on amount payable to media companies on behalf of their clients. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “The assessee has conceded about their liability to pay service tax on the amount of commission received by them while rendering the advertising agency service to...

Activity Of “Chilling Of Milk” Is A Service, Leviable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that activity of chilling of milk is leviable to service tax. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the activity of chilling of milk during the post negative period amounts to rendering 'services' as defined in section 65B (44) and is therefore, leviable to service tax.” In this case, the assessee/appellant in engaged in...

No Service Tax On Services By Organizer In Respect Of Business Exhibition Held Outside India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on services by organizer in respect of business exhibition held outside India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………the Business Exhibition for which the appellant received services from the foreign agencies, were held outside the taxable territory. Resultantly, the Place of Provision of Services ...

Amount Deposited As Service Tax If Refundable, Should Not Be Treated As Pre-Deposit U/S 35F Central Excise Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount deposited as service tax, if refundable, should not be treated as pre-deposit under Section 35F of Central Excise Act, 1944. “Section 11B provides for refund of duty or service tax. If an amount is already paid as duty or service tax, it is reckoned while computing if any further amount needs to be paid to meet the mandatory requirement of pre-deposit under section 35F. Merely...