Recruiting staff and supplying them to group companies to deal with activities undertaken by group companies - such an activity does not, prima facie, come under purview of BAS - Stay granted from pre-deposit of Rs 8.35 Cr: CESTAT
MUMBAI, APRIL 02, 2013: THE appellant was found to be engaged in recruitment and supply of manpower for the group companies and the cost of expenditure towards the salaries and other administrative expenses were reimbursed to them by other group companies on actual basis from May 2006 onwards. In addition to the reimbursement of the expenditure, the appellant also charged a sum of Rs.1.00 lakh every month for the services rendered by them and started discharging service tax liability on the said amount.

Work order indicates that it is for loading and transportation of clinkers and rate for transportation is far higher than that for loading - appellant to discharge ST under GTA services: CESTAT
MUMBAI, APR 01, 2013: THE appellant are manufacturers of cement and the raw material is clinker, which is received by them by sea through ships. The said clinker is unloaded from the ships at the jetty and thereafter transported to their factory by availing services of transporters, namely, New Konkan Transport and M/s. Yashashree Transport.

Mandap keeper collecting advance from customers and depositing ST - Venue sealed by Municipality and appellant returns booking with ST to customers - appellant can avail credit of such excess ST paid - appeal allowed: CESTAT
AHMEDABAD, MAR 28, 2013: THE appellants are engaged in providing taxable service under the category of ‘Mandap Keeper'. The appellant have collected some advance payment along with Service Tax from the customers and deposited such Service Tax collected to the Government account. Subsequently, the party plot was sealed by an order of Ahmedabad Municipal Corporation due to which the party plot could not be given for the intended purposes. The appellant cancelled the bookings for the party plots and at the request of customers refunded the booking amount along with the Service Tax collected by them.

Erection of sluice gates in agricultural dams - Maharashtra Govt are not commissioning agency as they do not undertake such activities for anybody else except themselves - stay granted: CESTAT
MUMBAI, MAR 25, 2013: THE appellant is the Chief Engineer (Mechanical), Water Resources Department of the Government of Maharashtra. The appellant undertook erection of various types of sluice gates and hoses for the dams constructed in various districts of Maharashtra, such as, Amravati, Akola, Washim, Yavatmal, Buldhana districts for the Vidharbha Irrigation Development Corporation, Tapi Valley Irrigation Development Corporation and Krishna Valley Development Corporation.

Service charges paid to foreign lessor for procuring aircrafts - appellant liable to pay ST u/s 66A of FA, 1994 - pre-deposit ordered of Rs 1.5 crores: CESTAT
MUMBAI, MAR 19, 2013: THE appellant procured aircrafts for which they got equipment lease financing and for which payment was made by the appellant to various entities abroad, connected with lease finance. They also kept a deposit with the International Finance Corporation, lessor towards maintenance reserve.

Working as DSA for Bank – based on advise of Consultant assessee failed to pay tax - fit case for condoning lapse & not imposing penalty by invoking s.80 of FA, 1994: CESTAT
AHMEDABAD, MAR 18, 2013: THE appellant was providing services as Direct Sales Agents (DSA) on commission basis since October, 2004 to General Insurance Companies and ICICI Bank.

Two units jointly providing service to overseas client - merely because payment is routed through one unit, demand of service tax by treating one as sub-contractor to other is prima facie not sustainable: CESTAT
NEW DELHI, MAR 15, 2013: THERE are two companies Jubilant Chemsys Ltd, Noida and Jubilant Biosys Ltd, Bangalore which are subsidiaries of Jubilant Life Sciences, engaged in providing Scientific and Technical Consultancy services. In terms of their agreements with overseas clients, they provide the service of scientific and technology consultancy service.

Interpretation of notification not to liking of Revenue cannot be treated as deliberate violation to evade tax: no penalty is imposable: CESTAT by Majority
NEW DELHI , MAR 14, 2013: THIS is a Revenue appeal. And the service tax involved is a princely amount of Rs.86,198/-, an equivalent amount of penalty u/s 78 and another Rs.2000/- of penalty u/s 77 of FA, 1994, all of which were dropped by the Commissioner(Appeals) way back in the year 2008.

To market agrochemicals in USA appellant sourced technical data readily available from company situated in USA - data is available off shelf to all for price - activity prima facie cannot come within purview of BAS under reverse charge - stay granted: CESTAT
MUMBAI, MAR 12, 2013: THE appellant wanted to market agro-chemicals in the United States of America. In order to do that, they needed to obtain registration from United State Environmental Protection Authority (USEPA). To obtain this registration, they were required to provide technical data/information about the products.

Services provided in relation to operation of accounts of EPFO & ESIC are not taxable under Financial Services - however, since appellant has paid ST demand and are not claiming any refund, no penalty is imposable: CESTAT
AHMEDABAD, MAR 11, 2013: THE appellant State Bank of India is providing taxable services falling under the category of 'Banking and Other Financial Services' and registered with the department. On the basis of the intelligence gathered by the officers of DGCEI it was revealed that SBI also provided taxable services in relation to operation of accounts of the Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) classifiable under Banking and other financial services and on which no Service Tax was being paid.

Tourists paying fee for ropeway facility provided by appellant - they are not beneficiary of any planning, scheduling or arranging of tours - appellant has not acted as 'tour operator' and is not liable to service tax - CESTAT by Majority
NEW DELHI, MAR 08, 2013: THE Appellants have leased a ropeway installed by Municipal Board, Mussoorie at Mall Road, Mussoorie and are engaged in operating it to entertain tourists by carrying tourists from Mall Road to Gun Hill and back to Mall Road,

Appellant is not merely acting as Commission Agent but is also operating showroom, & collecting sale proceeds on behalf of principal TANISHQ - such activities do not come within purview of Commission agent hence benefit of notf. 13/2003-ST correctly denied: CESTAT
MUMBAI, MAR 06, 2013: THE appellant owns a premium showroom and have been discharging service tax liability since November 2005 under the category of "Business Auxiliary Service". Scrutiny of the records of the appellant revealed that the appellant has entered into a Management Agent agreement dated 23/09/2005 with M/s. Titan Industries Ltd. (TANISHQ).

Appellant appointing Courier Agents outside India - Revenue seeking ST under reverse charge mechanism - services rendered abroad - liability to pay ST u/s 66A of FA, 1994 does not arise - situation revenue neutral - Prima facie case in favour - Stay granted: CESTAT
MUMBAI, FEB 26, 2013: THE appellant is engaged in rendering taxable services such as Courier Agency Services and Air Travel Agency Services. They are also engaged in the business of collecting documents and articles from customers located all over India and delivering them abroad. The company has appointed various Courier Agents outside India to deliver such items outside India.

Since sugar is a manufactured product it cannot be said that service rendered to sugar factory is in relation to agriculture - pre-deposit ordered of 50% of ST dues: CESTAT
MUMBAI, FEB 25, 2013: THERE are two appeals which have been taken up together for consideration by the CESTAT.In the first appeal, the appellant, Suvarna Sanjivani Sugarcane Transport Pvt. Ltd. provided sugar cane harvesting and transportation services to M/s. Sanjivani (T) SSK Ltd. The department was of the view that the said service is classifiable under “Business Auxiliary Service” and the consideration received is liable to service tax.

MD of appellant Co also performed job of MD of another Co by devoting 20% of time and for which he was compensated - If at all any advisory activity was undertaken, demand for ST can be made only on him and not on company: CESTAT
MUMBAI, FEB 22, 2013: THE appellant had employed Shri XXX as a Managing Director (MD). Shri XXX was also employed as MD of M/s Brembo Brakes India Pvt. Ltd. Shri XXX was required to devote 20% of his time to the work of M/s Brembo Brakes India Ltd. and for the remaining 80% of the time he was required to work for the appellants. M/s Brembo Brakes India Ltd. compensated Shri XXX for his work as MD and remuneration of Shri XXX was routed through the appellant and the payment received was credited to the account of Shri XXX without retaining any part thereof.

Rule 9(1)(bb) of CCR, 2004 does not have retro effect - provisions of rule 9(1)(b) does not apply to supplementary invoices issued in Aug, 2008 in respect of ST paid - applicant has made case for total waiver of dues: CESTAT
MUMBAI, FEB 22, 2013: THE applicant received Input service in the month of August, 2008 but the service provider did not pay the Service Tax due.Later on, the service provider paid the service tax and issued a supplementary invoice in this regard. The service tax was reimbursed by the applicant and they took the CENVAT credit of the same.

There is nothing in notification 17/2009 that it should be compulsorily availed by manufacturer exporter - Denial of CENVAT Credit is improper: CESTAT
MUMBAI, FEB 15, 2013: THE appellant are manufacturers of paper and paper products. They availed CENVAT Credit of the service tax paid on CHA Services, Shipping Agent Services and Clearing & Forwarding agent services and courier agency services amounting to Rs. 71,126/-.

Export Rebate - Condition 3 of Notification No. 12/2005 - Impossible to comply with requirement before export - Rebate Allowed: Delhi HC
NEW DELHI, FEB 14, 2013: AS per Notification No. 12/2005- S.T dated 19.04.2005, Rebate was granted of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all taxable input services used in providing taxable service exported out of India. Condition 3.1 of the Notification stipulated that..

Agreement for cleaning of hospital premises - Revenue demands ST under Manpower Supply - activity apparently is Cleaning Services and it is taxable if provided to any Commercial entity - as service recipient is not commercial, Stay granted: CESTAT
MUMBAI, FEB 13, 2013: THE applicant entered into an agreement for cleaning of the premises of D.Y. Patil Hospital & Research Centre. The CCE, Pune is of the view that the said activity undertaken by the applicant falls under the category of Manpower Recruitment and Supply Agency Services. Accordingly, a demand notice for recovery of Service Tax of Rs. 91,83,978/- was issued and confirmed by the Commissioner along with imposition of interest and penalties.

Appellants are manufacturer of country liquor under brand name Pahili Dhar, registered in their name and are in agreement with Talreja Trade for marketing - it cannot be said that appellant are job workers for Talreja as they are selling agents - they are not liable to pay ST: CESTAT
MUMBAI, FEB 12, 2013: THE appellants are manufacturers of sugar and denatured spirit/denatured ethanol. The appellants are manufacturing country liquor under the registered brand name of "Pahili Dhar"and are having an agreement with M/s. Talreja Trade (HUF) for marketing of the said country liquor. M/s. Talreja Trade (HUF) is also supplying the essence and packing materials for manufacturing of country liquor to the appellants.

CENVAT Credit on Input Services availed after two years - Revenue applying rules in respect of Inputs whereas dispute is in respect of Input service - there is no bar of taking credit subsequent to payment for consideration of input service - stay granted: CESTAT
MUMBAI, FEB 11, 2013: ONLY recently CESTAT decision 2013-TIOL-216-CESTAT-MUM where the Bench while setting aside the order of the lower authority had held that there is No time limit in the CEVNAT Credit Rules for taking credit on "Inputs" & if a manufacturer does not take credit as soon as inputs are received in factory, word 'immediately' in rule 4(1) does not mean nor is it intended to mean that benefit would be denied.

CENVAT Credit - Since goods are delivered directly to customers, GTA Service employed up to door of buyer is available as Credit - so also, when goods are cleared from depot, same becomes place of removal and appellant is entitled for Input Service credit on GTA service up to dep ot: CESTAT
MUMBAI, FEB 08, 2013: THE period involved is February, 2009 to October, 2009 and concerns availment of CENVAT Credit on GTA Service. The appellant is manufacturer of I.C. Engine Parts and Aluminium Ingots etc. They are clearing the goods directly to the customers from their factory and sale price is FOR. Therefore, they included the transportation charges into the assessable value and claimed input service credit of outward transportation service. On this account, they avail CENVAT credit of Rs, 10,354/-.

Construction of hostel for students of medical institute - there is no allegation that building is being used for any other purpose - no cause for payment of ST under Works Contract Services - order set aside and appeal allowed: CESTAT
MUMBAI, FEB 07, 2013: THE appellants have constructed a Boys and Girls Hostel for students of an educational institution. They got registered themselves with the Revenue authorities and paid service tax on the said activity under ‘Works Contract services' for the period April 2008 to September 2008.

Refund - Marketing fees paid to foreign service provider & ST paid on reverse charge basis - same is input service as defined in rule 2(l) of CCR - refund is available since appellant is unable to utilize credit - Appeal allowed: CESTAT
MUMBAI, FEB 06, 2013: THE appellant is engaged in providing Renting of Immovable property services, Customized Software Development Services, etc. They are also paying service tax as recipient of Business auxiliary service. These services were used in providing software development services which was exported.

Public facility means facilities owned by govts - Sports Stadium constructed for conducting Games is non-commercial construction - merely because some amount is charged for using facility, it cannot become commercial - stay granted: CESTAT
MUMBAI, FEB 05, 2013: THE appellant constructed a Sports Stadium Complex for Government of Maharashtra at Mahalunge, Balewadi, Pune and this Stadium is known as Shree Shiv Chhatrapati Sports Complex. This stadium was constructed on tender invited by the Government of Maharashtra.

After Rule 5 of Service Tax Valuation Rules, it is now turn of CBEC Circulars - Delhi High Court quashes Circular No 158/2012 and 154/2012 as contrary to Finance Act, 1994 and Point of Taxation Rules 2011
NEW DELHI, FEB 04, 2013: THE petitioner is an association of Chartered Accountants, registered as a society in Delhi.

Rate of tax applicable is one prevailing at time of providing service, not receipt of payment - TRU instructions quashed: Delhi HC
NEW DELHI, FEB 01, 2013: THE main issue in these writ petitions is with regard to the applicability of the rate of service tax in respect of the Works Contract Service which is defined in Section 65(105)(zzzza) of the Finance Act, 1994. The case of the petitioner is that the said services were rendered prior to 01.03.2008 when the rate of service tax on the said service was increased from 2% to 4%.

When farmers and transporters have got into contracts with sugar factory, by no stretch of imagination appellant could be considered as person responsible for supply of manpower to sugar factory - Stay granted: CESTAT
MUMBAI, JAN 31, 2013: THE appellant is a Trust (Sanstha) consisting of farmers and transporters. The farmers undertake harvesting of sugar cane and the truck owners undertake transportation of these from the farmers' fields to the factory of M/s Dudhganga Vedganga Sahakari Sakar Karkhana Limited, Bidri, Kolhapur. The bills for the service rendered to the sugar factory are routed through the Sanstha and the payment is received from the sugar factory to the Sanstha for further distribution to the farmers and the transporters.

Merely on ground that there is shortage of Inputs as per balance sheet, CENVAT credit on Input Service of Transportation cannot be sought to be denied - Prima facie case in favour - stay granted: CESTAT
MUMBAI, JAN 29, 2013: THE Commissioner, Central Excise, Mumbai-V booked a case against Mahanagar Gas Ltd. .The Central Excise officers, while scrutinizing the records, observed that the Balance-sheet and Annual Report of the applicant show the shortage of the stock of natural gas. The department was of the view that the applicants are NOT entitled for CENVAT credit of "inputs services"on the quantum of goods found short as per Balance Sheet/Annual Report of the financial year 2009-10.

Activities of 'Scientific Research' and 'Consulting Engineering Services' are different – Scientific Research not taxable prior to 16.07.2001 under Consulting Engineer Service: AP High Court
HYDERABAD, JAN 24, 2013: THE respondent M/s. National Ship Design and Research Centre, Visakhapatnam is an autonomous body under the administrative control of Ministry of Surface Transport, Government of India, and is engaged in providing services in the fields of integrated ship design, consultancy, maritime economics, research and development. The services being provided by the respondent include design (tender design to production drawings) of all kinds of floating structures and also providing consultancy in the fields of techno economic evaluation of vessels, model testing etc.

Service Tax on Toll charges - If on basis of agreement, contractor is authorised to collect toll charges from users and entire activity is done on BOT basis, there is no ST liability - Demand of Rs 30 Cr set aside: CESTAT
MUMBAI, JAN 22, 2013: THE appellant is an ideal road builder and engaged in construction of highways i.e widening of the existing two-lane carriageway from KM 0/115 to KM 23/509 of Thane-Bhiwandi bye-pass road. The Public Works Department (PWD) of Government of Maharashtra awarded the contract for this purpose. To compensate the appellant for undertaking the work they were authorised to collect tolls from the users of the road at various places. The appellant collected tolls from the users. Let aside the fact that the departmental officers had commuted by this road and waved their identity card for not paying toll on more than one occasion, when it came to Service Tax, they were not the one to waive the demand notice.

Board had clarified that if main service provider is discharging tax liability then sub-contractors to main service provider need not pay service tax on same activity - this position changed after extension of CENVAT credit to service tax sector - in such scenario it cannot be said that sub-contractor deliberately evaded service tax: CESTAT
MUMBAI, JAN 17, 2013: THIS is a Revenue appeal. The respondents are service providers of ‘Survey and Map Making' which is a taxable service and they rendered the said service during the period from 2005-06 to 2007-08 to Monarch Surveyors and Engineering Consultants Pvt. Ltd. , which is a related firm of the appellant. But they did not pay the service tax on the ground that the main contractor, namely, M/s Monarch Surveyors and Engineering Contractors Pvt. Ltd, have discharged the service tax liability on the value inclusive of the service charges received by the appellant.

CAG has no power to audit records of private assessees; since conflicting decision appears to have been given in another case, matter referred to Division Bench : High Court
KOLKATA, JAN 16, 2013: THIS writ application has been filed inter alia challenging a Notice No. RA/ST/Prog/D/18/131 dated 3rd November, 2011 issued by the Office of the Principal Director of Audit, Central Kolkata for audit, by the Central Excise Revenue Audit (CERA) team, an audit team under the Comptroller and Auditor General of India, of the service tax records, accounts and other related documents of the petitioner company. The audit was proposed to be held between 12th December, 2011 and 16th December, 2011 and the petitioner company was required to provide suitable accommodation for the audit team.

Proprietorship concern is known by proprietor - person providing service is only Shri Mahajan whether he is providing services in name of Veer jawan or Jai Jawan Securities – demand for period prior to registration in name of Veer Jawan Securities Service has rightly been demanded: CESTAT
MUMBAI, JAN 16, 2013: THE appellant started security agency in the year May 1997 under the name and style as Jai Jawan Securities under the proprietorship of Shri S.N.Mahajan . In May 2002, Shri Mahajan changed the name of the security agency to Veer Jawan Securities Services and applied for registration to the department on 28.11.2003

Appellant getting trade secret from an ex-employee of competitor firm - competitor firm filing suit in US Court - appellant pays for use of trade secret - ST demand on reverse charge under IPR service - stay granted: CESTAT
MUMBAI, JAN 15, 2013: THE appellant is a manufacturer of Ion exchange resins. In USA, one Shri Narendra Singh who was working with M/s Purolite International Ltd., a competitor of the applicant, left the job and provided trade secret for manufacturing of ion exchange to the applicant. M/s Purolite International Ltd. filed a suit in the USA court and the applicant was charged with using the trade secret of M/s Purolite International Ltd. Court proceedings were initiated against the applicant.

Maintenance and Repairs by Railway of sidings owned by pvt parties - Railways not collecting any statutory fee but service charges - liable to Tax - pre-deposit ordered of Rs.1.62 Crores: CESTAT
MUMBAI, JAN 11, 2012: THE appellant is Central Railway. They undertook maintenance and repairs of Railway sidings owned by private parties under agreements entered into with such owners. The revenue was of the view that the activities undertaken by the Railways comes under the taxable service of "management, maintenance and repair services" as defined under section 65(105)(zzq) of the Finance Act, 1994 read with section 65(64) ibid with effect from 16/06/2005.

Scope of exemption Notification cannot be whittled down by CBEC clarification: CESTAT
NEW DELHI, JAN 10, 2013: THE Appellants were registered with service tax authorities and paying Service Tax under the head for Commercial Coaching and Training. But it was found by Revenue that they were not paying service tax on the full amounts received from students but were paying tax on part of the amounts received.

Club or Association - Applicant charging registration and subscription fee for providing services of guidance on business matters - Since they themselves are paying tax on club service w.e.f. 1.4.2009 there is no prima facie case in their favour: CESTAT
MUMBAI, JAN 09, 2013: THE applicant is providing various services to its members such as general guidance on the various facts of business, representation of members' problems and views at local, state and central govt. level, networking and information sharing opportunities, free access to commercial reference library etc. The applicant is charging the members a one-time registration fee and also recovering annual subscriptions from them for providing the aforesaid services. It is the view of the department that the said "services" are classifiable under category of "Club or Association service" of the Finance Act, 1994 and service tax is leviable on the same.

In relation to immovable property difference between 'renting' and 'leasing' is blurred - Ordinary meaning of 'renting' will not cover long term leasing - Developing township and maintaining municipal functions is not commercial activity of Govt - GNIDA granted stay: CESTAT
NEW DELHI, JAN 08, 2013: THE appellant is a body established under the Uttar Pradesh Industrial Development Act, 1976 by notification issued under section 3 of the said Act to develop certain notified areas as a planned industrial township. Under section 6 of the said Act, one of the functions of GNIDA is to allocate and transfer whether by way of sale or lease or otherwise plots of land for industrial, commercial or residential purposes. Section 7 of the said Act gives power to GNIDA to transfer of land. They charge both one-time lease charges at the time of initial handing over of the land and also charge annual lease charges at different rates for land given for different purposes.Revenue was of the view that service tax is payable on such "lease charges" received as per provisions of section 65 (105) (zzzz) read with section 65 (90a) of Finance Act, 1994.

When entire order which got issued was not relatable to matter, notwithstanding reference numbers in preamble of same, it has to be held as if entire order was a mistake - ROM application allowed: CESTAT
NEW DELHI, JAN 07, 2013:An order was passed by the CESTAT but the dictation which was given in another case got copied as order in this particular appeal, which got signed by both the Members and was issued

Co-operative society promoted by six banks to provide training to employees - banks pay charges to society - whether liable to ST - prima facie view is that word 'commercial' in definitions at sec 65 cannot be considered to be superfluous - Stay granted: CESTAT
NEW DELHI, JAN 04, 2013: THE appellant is a co-operative society promoted by six different banks like Oriental Bank of Commerce, Bank of Baroda, Punjab and Sind Bank etc. They provide training to the employees of these member banks. They also provide training to employees of other banks in the field of banking which enables the employees to efficiently handle the business of the banks of which the trainees are staff. The benefit of the training accrues to the Banks which send their employees for training and pay for the appellant.

Since penalty u/s 77 & 78 was only issue before Commr(A), there is no bar in initiating revision proceedings in matter of penalty u/s 76 - Penalty imposed by revisionary authority u/s 76 upheld, however benefit of cum-tax benefits extended: CESTAT
MUMBAI, JAN 02, 2013: THE appellant was issued a SCN dated 14/02/2008 by the Assistant Director, DGCEI, Nashik, inter alia demanding service tax amounting to Rs. 4,64,524/- in respect of "Franchisee service" and "Business Auxiliary service" provided by them from 26/07/2006 to 15/03/2007.

Processes of denting and painting are essential for manufacture of bus bodies and these processes are to be considered as manufacturing - Demand of ST made under BAS fails - Orders set aside: CESTAT
NEW DELHI, JAN 01, 2013: THE appellant was undertaking certain jobs within the factory of JCBL Ltd which was manufacturing bus bodies falling under chapter 8707 of the Central Excise Tariff. The work done was - Inspection & Rectification of Buses (including denting & painting work), Shifting of bus structure from inter plant (loading and unloading), Material & Scrap Shifting and supply to Lines & Misc. Work

Port Services - supply of fresh water by barge and bunker to vessels - from invoice it is clear that it is not cost of water alone, but it also includes other elements - Pre-deposit ordered of Rs 3.5 Cr: CESTAT
AHMEDABAD, DEC 28, 2012: THE Appellant is a registered provider of various services under the category of "Port Services".

CESTAT, Mumbai, contemplates initiating contempt proceedings against Deputy Commissioner, Service Tax Division, Raigad for wilful disobedience of directions contained in its order
MUMBAI, DEC 26, 2012: A Service Tax demand of Rs.17,14,394/- was confirmed against the applicant by the lower authorities and against the order of the Commissioner(A), the applicant had filed an application for Stay/appeal before the CESTAT.

M & M Ltd is legal entity which has two separate divisions - appellant is logistics division which provided logistics services to Farm Equipment Division - merely by taking separate ST registrations it cannot be said that both are separate legal entities - demand not sustainable: CESTAT
MUMBAI, DEC 24, 2012: THE appellant are the logistic division of M/s. Mahindra and Mahindra Limited. They are providing various logistics services to another division - Farm Equipment Sector (FES) Division of Mahindra and Mahindra Ltd.

Repair of roads - Retrospective exemption - Prima facie, runways at airports are species of genus 'road' and, therefore, runways should also normally receive same treatment as roads for ST purpose - CESTAT directed to hear appeal finally within 3 months: Bombay HC
MUMBAI, DEC 20, 2012: THE appellant is registered as Service Tax Provider and carries on the business of maintenance and repairs of roads including runways at different airports.

Money Transfer from abroad - Whether Export or Service rendered in India - It is export of service - CESTAT by Majority
NEW DELHI, DEC 18, 2012: IN  this case, 10 COD applications, 6 stay applications and 42 appeals have been decided. Out of these 42 Appeals 15 are filed by assessees where the main issue is decided against the assessees and 27 by Department where the main issue was decided against the department. The facts and issues involved are common except that the facts and issues relating to M/s Paul Merchants Ltd ('PML') are slightly different from that of others because PML is a main agent to Western Union Network Ltd. ('Western Union') and others are sub-agents to PML or to other main agents of Western Union similarly placed as PML.

Refund - Services such as legal and customer support activities are essential in running output services namely BAS to customers located abroad - any service which has nexus with business has to be treated as Input Service - Appeal allowed: CESTAT
MUMBAI, DEC 14, 2012: THE appellant is engaged in providing Business Auxiliary Services to their customers who are located abroad. For rendering the aforesaid services, they used various input services such as legal services, market data, payroll processing, customers support activities etc. The appellant filed a refund claim for the service tax paid on input services under Rule 5 of CENVAT Credit Rules, 2004, on the ground that they are unable to utilize the credit inasmuch as all their output services are exported.

Ship brokers are not Commission Agents: CESTAT
NEW DELHI, DEC 11, 2012: APPELLANTS are the ship brokers and carry on following activities ...

Promotion of brand - Matter referred to TM - ROM on ground that M(J) had not given findings on issue of export of service, therefore, there is a mistake apparent - since M(J) has given findings on merit, he is not required to address other issues - ROM dismissed: CESTAT
MUMBAI, DEC 10, 2012: THE facts of the cases are that an intelligence was gathered by the officers of DGCEI that the appellants are engaged in brand promotion of 'INTEL' and 'MICROSOFT' for which commercial considerations were being paid by both the brand owners periodically. Therefore, it appeared that the services provided by the appellants are taxable under 'Business Auxiliary Service' as per Finance Act, 1994 effective from 01.07.2003. It was found that the appellants were not discharging their service tax liability on the commercial considerations received by them from the two brand owners.

Refund - BAS - appellant undertakes processing of data which are exported by transmitting to server - dedicated telecom lines are essential & is to be considered as Input Service - ST paid on leased telecom lines is available as CENVAT credit: CESTAT
MUMBAI, DEC 07, 2012: THE appellants are a 100% EOU and are engaged in providing “Business Auxiliary Services”. They have filed refund claims amounting to Rs.42,76,215/- and Rs.29,90,199/- pertaining to their two units, namely, Unit no. 1 & Unit no. 2 at Nashik.

Applicant providing technical knowhow service - although they have made entries in books, they have not received any amounts for providing service - prior to May, 2008, ST was payable only on receipt basis - Stay granted: CESTAT
MUMBAI, DEC 06, 2012: THE applicant is a manufacturer of bulk drugs and they are having separate Research and Development Division and they are providing technical knowhow service to M/s. Doctors Organics Chemical Ltd. and M/s. Bravo Healthcare Limited during the period April 2004 to March 2009. They have raised invoices to these concerns for providing the service of technical knowhow and business auxiliary services.

Delhi High Court strikes down Rule 5(1) of Service Tax (Determination of Value) Rules - Holds Rule is ultra vires Sections 66 and 67 of Finance Act, 1994
NEW DELHI, DEC 05, 2012: WHILE the Revenue had a winning spree in Supreme Court in recent past, it has got a big jolt from the Delhi High Court a few days back. In a judgment that has far reaching consequences, ( including a possible retrospective amendment) the High Court has struck down the Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 as ultra vires the provisions of Section 66 and 67 of the Finance Act, 1994.

Appellant models for product through ad films, print ads etc - Revenue treats her activity as BAS - Demand - Appellant appoints agent to discharge tax liability - mere payment under wrong head does not mean that ST liability has not been discharged - Appeal allowed: CESTAT
MUMBAI, DEC 05, 2012: ON the basis of intelligence that the appellant through Matrix India Entertainment Consultants P. Ltd. (Matrix) was providing services to various companies for promotion of their products, whether manufactured directly or indirectly, or marketed or sold by these companies, by agreeing to model herself for advertisement films, TV commercials, still photographing, footage, press advertisement, outdoor, packaging and sales material including backing sheets, mobile stickers, danglers, wobbles, booklets and other printed matters and other promotional material but not paying Service Tax under the head ‘Business Auxiliary Service', SCNs were issued for recovery of service tax of Rs.2,79,24,960/- .

Appropriation of amounts towards alleged Service tax dues said to be payable from amount due to petitioner as export duty rebate in respect of manufactured goods cannot be sustained in eye of law when fact is that their appeals against Service Tax dues were pending before CESTAT:HC
CHENNAI, DEC 03, 2012: THE petitioner is engaged in the business of manufacturing different varieties of yarns, including acrylic, polyester and viscose yarns, meant for the domestic market, as well as for exports.

Back office services like preparation of Federal Tax Returns, Co-sourcing services, Analyzing Client Data and calculating estimates of tax amount - not IT Services: AP High Court
HYDERABAD, NOV 30, 2012: THIS appeal is filed by the Revenue under Section 35-G of the Central Excise Act, 1944 challenging the Final Order No.455 of 2008 dated 13-03-20082008-IST-179-CESTAT-BANG of the CESTAT.

Contempt notice - contentions raised by appellant are not acceptable as Stay was granted considering statement of Counsel while disposing Stay application - if submissions are accepted then it will amount to review of order - in view of apology tendered, contempt proceedings withdrawn: CESTAT
MUMBAI, NOV 29, 2012: IN the present case, the CESTAT had by its order dated 23.05.2012 granted an unconditional waiver of pre-deposit of Interest and Penalty subject to the verification of the submission made by the applicant that the entire amount of Service Tax of Rs.18,08,18,228/- had been paid.

Services utilised in residential colony set up by appellant so that personnel are available 24 hours near factory - CENVAT Credit not available on such welfare activity in view of precedent decisions of High Courts - demand beyond a period of one year not sustainable but interest payable: CESTAT
AHMEDABAD, NOV 23, 2012: THE appellant had availed CENVAT credit of service tax amounting to Rs. 5,73,371/- towards different services like Manpower Supply Services, Booking Services, Pest Control Services utilised in residential colony, Guest House and Sport Complex or services utilised for the persons who are not employees of the Company during the period July 2007 to June 2009.

Applicant collecting rent and paying tax under Renting of Immovable Property Service - however, electricity charges collected from tenants not included in value of taxable service - as electricity is 'goods', said charges may not form part of taxable value - waiver of pre-deposit of Rs 5.7 Cr - Stay granted: CESTAT
MUMBAI, NOV 21, 2012: THE applicant is the owner of premises which have several units and were given on rent to various persons. On this rent collected, the applicant is paying Service Tax under the category of ‘Renting of Immovable Property Service'. They are also involved in the activity of maintaining and repairing of the building and the applicant are paying Service Tax on this activity also. The department is more than happy to receive these Service Tax payments on time.

Security service at pump house for pumping water from Kundalika river, which is required as coolant in manufacturing operations is an Input Service - as far as Input services are concerned, it cannot be insisted that they should be provided within factory - Credit allowed: CESTAT
MUMBAI, NOV 19, 2012: KUNDALIKA is a small, relatively unknown yet extremely beautiful river in the Sahyadri Range, Maharashtra's highest rainfall areas. It is located close to Kolad on the Mumbai-Goa Highway (NH-17) in the virgin forests below the Mulshi and Bhira Dams. This, along with the fact that the river is fed by excess water from series of hydroelectric projects and dams, makes it ideally suited for White Water Rafting and other water based adventure and leisure activities. It is fast emerging as the Adventure Capital of Maharashtra.

Appellant borrowed money by way of 'syndicated loans' from various overseas banks for international acquisitions - appellant paid agency fees, commitment fees or other fees – service correctly classifiable under Banking & Financial Services – pre-deposit ordered of Rs 1 Crore: CESTAT
MUMBAI, NOV 16, 2012: THE appellant borrowed money by way of 'syndicated loans' from various overseas Banks for the purpose of international acquisitions and capital expansions. In order to procure a lender/lender syndicate, the appellant appointed various Banks abroad as Mandated Lead Arrangers (MLAs) and paid arrangement fee, which is the fee paid to procure lender/lender syndicate. The department was of the view that the appellant was liable to pay Service Tax on the fees paid to the MLAs and accordingly issued notice for recovery of Service Tax amounting to Rs.8,05,24,006/- along with interest during the period 1.10.2005 to 31.1.2007 under the category of Banking and Financial Services under the reverse charge mechanism as provided for vide Section 66A of the Finance Act, 1994

Prior to 01.06.2007 specific service mainly Works Contract was not available in statute and, therefore, applying principles of classification as enumerated in Section 65A of Finance Act, 1994, claim of appellant that prior to 01.06.2007 service itself was not liable to tax cannot be upheld : CESTAT
AHMEDABAD, NOV 15, 2012: THE appellant is engaged in manufacture and sale of wind operated electricity generators called "Wind Energy Converter" (WEC). The company also provides various taxable services to its WEC customers such as Erection, Commissioning or Installation Service, Commercial or Industrial Construction service, Works Contract service, Goods Transport Agency service. The services of Erection, Commissioning or Installation, Commercial or Industrial Construction, Works Contract, Goods Transport Agency were made taxable w.e.f. 01.07.2003, 10.09.2004, 01.06.2007 and 01.01.2005 respectively.

Benefit of composition under Works Contract is not admissible to ongoing contracts as on 01.06.2007 - Supreme Court endorses AP High Court order
NEW DELHI, NOV 14, 2012: AFTER introducing service tax on Works Contract service with effect from 01.06.2007 and notifying the composition scheme, many assessees who were paying service tax under various services like Erection, Commissioning or Installation, Construction service etc, by availing the abatement of 67% and paying effectively at the rate of 3.96% (33% on 12%) opted to pay service tax on ongoing contract at the rate of 2% under Rule 3(1) of Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007.

Applicants conduct courses on spoken English - Demand of Rs 3.8 Cr confirmed - prima facie case in favour in view of Board Circular clarifying that foreign language institutes are not liable to ST - stay ordered: CESTAT
MUMBAI, NOV 14, 2012: ONE always wonders as to why the adjudicating authorities are hell bent on confirming demands although the fact is that the CESTAT has in similar cases extended the benefit of the notification by adverting to the Board Circular and granted a Stay in the matter by waiving the pre-deposit of the adjudged dues.

Clearances of goods without duty under EPCG - leviability of ST on transaction which took place abroad - since issue involves determination of rate of duty and leviability of tax, matter cannot be heard by Single Bench but by a Division Bench in view of sec 35D(3): CESTAT
MUMBAI, NOV 12, 2012: THE provisions of section 35D(3) of the Central Excise Act, 1944 read ...........

CENVAT credit cannot be denied simply on ground that goods manufactured by job worker are not received in factory of applicant but after payment of duty by job worker are further used for manufacture of goods which are finally cleared to appellant - Stay granted: CESTAT
MUMBAI, NOV 09, 2012: PROBABLY the dispute involved is the brain child of an Audit team which had to come out with an objection as large as the company itself. To cite specifics, the demand notice is worth almost Rs.3.89 Crores

Financial difficulty - Nobody can make a claim that investment in equity shares should be kept intact while Service Tax liability should be deferred by exercising discretion of Tribunal - Pre-deposit ordered of adjudged ST amount: CESTAT
AHMEDABAD, NOV 08, 2012: THE appellants are engaged in construction of petroleum outlets for M/s Indian Oil Corporation Ltd. and on the ground that the appellant has not paid the Service Tax under the category of Commercial or Industrial Construction during the year September 2004 to October 2005, proceedings were initiated which culminated into demand of Service Tax of Rs.2,31,317/- with interest and penalty under Sections 77 and 78 of Finance Act, 1994.

Renting of property - 3 individuals are co-owners and rent out premises to a person who issues different cheques to all individuals - Revenue considers rents collectively and by denying SSI exemption hold them liable to tax - stay granted: CESTAT
AHMEDABAD, NOV 06, 2012: THREE individuals have filed applications against a common order-in-appeal for waiver of pre-deposit of an amount of Rs.3,58,688/- confirmed as service tax liability along with imposition of penalty and interest on the ground that they are providers of service under the category of Renting of Immovable Property.

Section 80 benefit can be allowed even in cases of suppression: CESTAT
CHENNAI, NOV 05, 2012: THIS is an interesting case of demand of service tax on transportation of goods by air. What makes the case interesting is the fact that demand finally survived for a period of one week, that is also because of non-availabiity of exemption during this short period. The service was exempted under Notification No 28/2004 ST dated 17.09.2004 which exempted the taxable service provided by an aircraft operator to any person in relation to transport of export cargo by aircraft from the whole of the service tax leviable thereon.

Permitting other schools to use name, logo as also motto clearly tantamounts to providing franchise service and if petitioner realized fees they were bound to pay tax - balance of convenience is also not in favour of petitioner: High Court
JAIPUR, NOV 04, 2012: BY a Writ Petition, the petitioner has challenged the order of the Commissioner, Central Excise (Appeals), Jaipur-II, directing them to deposit the entire amount of Service tax of Rs. 12,13,821/-, interest and 50% of penalties, within four weeks.

Revenue fails to trace dispatch records for period Dec 2008 to Jan 2009 to prove that O-in-O was served - appellant's claim they received order only in Dec, 2010 and filed appeal in Mar, 2011 and which is in time has to be accepted: CESTAT
AHMEDABAD, NOV 02, 2012: THE appellant was served a Show Cause Notice dt. 11.04.2007 for non-discharge of Service Tax on ‘Air travel agent' services. The appellant did not file any reply to the SCN nor they did they appear for the personal hearing before the adjudicating authority. Having no other alternative the adjudicating authority passed an O-in-O dt.29.12.2008. The appeal against such order was filed by the appellant on 30.03.2011 claiming before first appellate authority that the O-in-O was received by them on 30.12.2010 vide Letter No.STC/04-05/Prev/Misc./07-08/Gr.IV/5286, dt.30.12.2010.

Audit conducted in year 2009 and demand raised in respect of GTA service which applicant paid - later in October, 2010 SCN issued for period 2005-06 onwards demanding ST of Rs 6.4 Cr on gross amounts - Pre-deposit ordered of Rs 1 Cr: CESTAT
MUMBAI, NOV 01, 2012: THE applicants are providing taxable services under erection, commissioning and installation of power stations to various Electricity Boards and also to other customers. Applicants are paying service tax on 10% of the value of the material used in respect of the erection, commission or installation where the service provider is the State Electricity Boards. Applicants are paying 15% on the contract amount received from other customers.

Issue of management related service provided by merchant bankers are classifiable under Banking & other Financial Services & not as Underwriting services - applicant has not made a prima facie case in their favour – Axis Bank directed to make pre-deposit of Rs 50 lakhs: CESTAT
MUMBAI, OCT 30, 2012: THE applicant had availed the services of Non-Resident service providers, who did not have offices in India and they had paid certain fees/charges to such non-resident service providers for facilitating issue of Global Depository Shares (GDS).

Appellants were eligible for credit for tax paid as ST and, it was revenue neutral - by not paying ST immediately, appellants have lost Rs 26 lakhs paid as interest - penalties set aside: CESTAT
AHMEDABAD, OCT 29, 2012: THE Appellants are engaged in providing Port services. Proceedings were initiated against the appellants on the ground that they are liable to pay Service Tax on commercial charges paid by them for availing External Commercial Borrowings (ECB) under "Banking and Other Financial Services" during the period from 2005-06 to June, 2010

Refund - Export of Services by SEZ Unit - unutilized credit of ST paid on input service claimed as refund rejected by Commissioner(A) on ground that SEZ being under administrative control of DC, CCRs, 2004 are not applicable - Matter remanded: CESTAT
MUMBAI, OCT 25, 2012: THE appellant is a unit in the Special Economic Zone and is registered as a service provider under the category of “Business Auxiliary Services”. They exported taxable output service under the Export of Service Rules, 2005 without payment of service tax. This resulted in accumulation of unutilized credit of service tax availed on input service for which they filed a refund claim for Rs.5,63,332/- for the period October to December, 2010 in terms of Rule 5 of the CCR, 2004 read with Notification No. 5/2006-CE(N.T).

Hiring of buses to State RTC - not rent-a-cab service - Pre-deposit waived and recovery stayed: CESTAT
BANGALORE, OCT 23, 2012: THE applicants/appellants are contesting demands of service tax with education cess to various extents raised on them under the head 'rent-a-cab' service. They are also contesting the demands of interest on tax.

Where applicants are collecting tax in respect of permission granted for putting up ad boards on private properties, applicants have a strong prima facie case against demand – however, no case made for waiver against ad boards on street light poles - Pre-deposit ordered: CESTAT
MUMBAI, OCT 22, 2012: A Service Tax demand of Rs.1,17,95,397/- was confirmed against Pimpri Chinchwad Municipal Corporation by the CCE, Pune-I on the ground that the applicants were providing service under the category of Sale of advertising space or time service.

Maintenance of roads - in view of retro-amendment, prima facie case for waiver of demand of Rs 73 lakhs - in respect of construction of building for Municipal Corporation out of which only a part is used, demand raised for whole of contract – pre-deposit ordered: CESTAT
MUMBAI, OCT 19, 2012: NEW sections 97 and 98 were inserted in the Finance Act, 1994 by the Finance Act, 2012 and which read thus.

Washing of raw coal is not chargeable to Service Tax under BAS prior to 01.06.2007 - Activity of bringing coal to washery is for oneself and not for any other person - said activity cannot be segregated and held as cargo handling services - Demand of Rs 17.4 Cr set aside: CESTAT
NEW DELHI, OCT 17, 2012: THE following is the piece of information retrieved from the website of the Delhi Service Tax Commissionerate by employing the “search” engine. It needs mention that the information is available only when one agrees to abide by the disclaimer given..

Appellant undertaking activity of harvesting sugarcane and transporting same to factory - commission received is exempted in terms of notfn. 13/2003 as amended since this service is in relation to agricultural produce: CESTAT
MUMBAI, OCT 16, 2012: THE CCE & C, Aurangabad decided to start the New Year 2012 by adjudicating a “sweet” Service Tax case and he did it in style - by confirming it.

Club or Association Services - Common Effluent Treatment Plant set up and charges collected from members in relation to common facilities set up for recycling effluent - in view of retrospective exemption granted by Finance Act, 2012, stay granted: CESTAT
MUMBAI, OCT 15, 2012: A Service Tax demand of more than Rs.2.76 Crores (the CESTAT order mentions it as Rs.2 ,76,74,8767 /- - now how much is that? ) was confirmed against the appellant -Common Effluent Treatment Plant- [CETP] by the Commissioner of Service Tax, Mumbai-II along with the usual penalty and interest. The demand was confirmed on the ground that the appellant provided Club or Association services to their members and which is a taxable service.

Commnr(A) forgetting basic principles while deciding stay application – ordering for pre-deposit on premise that applicant had not pleaded any financial hardship and then dismissing appeal for failure to comply with order citing provisions is not proper – Matter remanded: CESTAT
MUMBAI, OCT 12, 2012: THE appellant had challenged the jurisdiction of the adjudicating authority on the ground that they had obtained a centralized registration but the lower appellate authority decided the stay application on the premise that the appellant had not pleaded any financial hardship by ordering a pre-deposit of the entire dues confirmed.

Bullock-carts prima facie cannot be considered as machinery or equipment, hence, giving on hire bullock-carts cannot be considered as 'supply of tangible goods for use' – Stay petition allowed and matter remanded as Commr(A) had not decided appeal on merits: CESTAT
MUMBAI, OCT 10, 2012: KINDLY take a look at the following contents of TRU letter D.O 334/1/2008-TRU dated 29.02.2008.

Notfn. 32/2004 & 1/2006 - In absence of any particular format prescribed under respective notifications, department insisting for declaration on each consignment note for allowing abatement is unsustainable - Demand of Rs 11 Cr set aside and appeals allowed: CESTAT
KOLKATA, OCT 05, 2012: THE appellant is registered as a GTA and availed the benefit of Notification No.32/2004-ST dated 03.12.2004 and Notification No.1/2006-ST dated 01.03.2006 during the material period. Show cause notices were issued to them denying the benefit of the said exemption Notification on the ground that the appellant had failed to fulfil the conditions of the said Notification in as much as they could not produce the relevant consignment note indicating necessary declaration from transport agency that neither credit on input or on capital goods and benefit of Notification No.12/2003-ST dated 20.06.2003 had been availed for providing such services by the said transport agencies.

Appellants engaged in brand promotion of INTEL and MICROSOFT - Member(T) concluding that it is promotion of branded goods hence taxable under BAS whereas Member(J) holding that it is promotion of 'brand' and not taxable in view of decision in Jetlite (India) Ltd - Matter referred to third Member: CESTAT
MUMBAI, OCT 04, 2012: THE facts of the cases are that an intelligence was gathered by the officers of DGCEI that the appellants are engaged in brand promotion of ‘INTEL' and ‘MICROSOFT' for which commercial considerations were being paid by both the brand owners periodically. Therefore, it appeared that the services provided by the appellants are taxable under ‘Business Auxiliary Service' as per Finance Act, 1994 effective from 01.07.2003. It was found that the appellants were not discharging their service tax liability on the commercial considerations received by them from the two brand owners.

CENVAT - Service tax paid on charges for transportation of children to school and tuition centres - prima facie not an Input Service - Pre-deposit ordered: CESTAT
NEW DELHI, OCT 03, 2012: THE appellant has taken CENVAT credit of Rs. 65,58,369/- in respect of Service tax paid on hiring of buses for transportation of the employees from home to the factory and back, hiring ambulance for taking injured employees for treatment & hiring of buses for children of the employees for transportation to the schools and tuition centres.

Applicant paying rent for job worker's unit and taking Cenvat credit - since premises for which rent is paid is not a part of manufacturing unit as per ground plan submitted, prima facie applicant has not made out a case for waiver of duty demanded - Pre-deposit ordered: CESTAT
MUMBAI, OCT 01, 2012: THE applicants are clearing semi-finished goods to their job worker and after due processing the goods are returned without payment of duty. The applicant paid rent of the premises of job worker and availed credit of the service tax paid

No Service Tax on Rail Tickets issued before 1.10.2012
NEW DELHI, SEPT 29, 2012: THE Indian Railways in a Press Note has clarified that.

No Time Limit for taking CENVAT Credit: CESTAT
CHENNAI, SEPT 28, 2012: WHAT is the time limit for taking CENVAT Credit?

Consulting Engineer - appellant receiving services from companies located outside India - even if as per agreement between service provider and service recipient, latter undertakes to pay tax, it is not liable to pay same prior to 18th April, 2006 - appeals allowed: CESTAT
KOLKATA, SEPT 26, 2012: THE Appellants are having their factory/plant at Jamshedpur. During the period from 01.04.99 to 31.03.04, the Appellant were receiving design and drawing, supervision services and supervision for engineering/manufacturing activities in India from various companies located outside the territory of India, under their expansion plan of their steel plant. These services were received by the Appellant from the Foreign Service provider who did not have any office in India. DGCEI initiated proceedings against the Appellant on the ground that they are not paying the Service Tax on the services, falling under the category of 'Consultancy Engineering Service' as specified in Section 65(31) of the Finance Act, 1994, received by them.

Maharashtra Industrial Development Corporation is a public authority and the activities performed by them are not taxable under the Finance Act, 1994 – Prima facie strong case in favour – Pre-deposit waived and Stay granted: CESTAT
MUMBAI, SEPT 25, 2012: AFTER the formation of Maharashtra State on May 1, 1960, the Government of Maharashtra constituted a "Board of Industrial Development" (BID) on October 1, 1960, under the Chairmanship of Shri. S. G. Barve, I.C.S. The various committees recommendations received in the industries department were taken up for implementation and as per the Borkar Committees recommendations development of Ulhas Valley Water Supply was entrusted to the Board of Industrial Development (BID).

Service provided by visa facilitator in form of assistance to individuals directly does not fall under any of taxable services under section 65(105) – Demand of ST under category of BAS set aside & Appeal allowed: CESTAT
MUMBAI, SEPT 24, 2012: THE appellants are engaged in the activity of visa facilitation and providing customer care services to the Diplomatic Mission Embassies/Consulates and the Visa applicants. In furtherance of their activity, they provide facility to the applicants (who seek visa) for filling of application form for visa and submitting the same with the respective Consulates. They also provide lounge services to the persons who have applied for visa and charges for food items and beverages supplied to the visa seekers.

Refund - Notfn. 17/2009 - Supplier discharging ST liability on documentation charges under category of Clearing & Forwarding Agency service - officers in-charge of appellant's factory have no jurisdiction to deny refund claim on ground that documentation charges are not covered under C&F Agency service: CESTAT
MUMBAI, SEPT 21, 2012: THE appellant had filed a refund claim of service tax of Rs. 2,45,720/- and which was allowed to the extent of Rs. 2,23,547/- and the balance amount was disallowed on the ground that the said service which is described as 'documentation charges service' is not notified under Notification No. 17/2009-ST as being eligible for input service tax credit

Taxability of reimbursable expenses incurred by Consulting Engineer has been under dispute from early stage from which said service was made taxable - impression of appellants was backed by instructions from CBEC - Appeal allowed: CESTAT
NEW DELHI, SEPT 20, 2012: THE appellant is registered with the department for payment of Service Tax under the category of 'Consulting Engineer'. They were providing their services to National Highways Authority of India during the period November 2001 to November 2003.

Circular No 98/2008 does not help Revenue - CESTAT holds construction service is input service for service of renting of immovable property
AHMEDABAD, SEPT 19, 2012: ANY layman would ridicule at the idea of saying that the service of construction of immovable property is not an input service for providing output service of renting of immovable property. If you do not construct an immovable property in the first place, how the service can be provided? But the Board thought otherwise and issued a Circular No.98/2008 ST dated 4.1.2008 clarifying that

Applicant seeks clarification from Revenue as to whether is activity is chargeable to Service Tax - CCE informing that applicant is not covered under Coaching service - SCN issued demanding ST for period 2003 to 2008 - extended period not invokable - Stay granted: CESTAT
MUMBAI, SEPT 18, 2012: THE applicant National Institute of Bank Management (NIBM) was established by the Reserve Bank of India (RBI) in consultation with the Government of India in the year 1969 as an apex autonomous and non-profit institution in the arena of banking and finance with the role of a "think-tank" for the banking system. A Service Tax demand of Rs.3,58,38,984/- was raised for the period 01.10.2003 to 30.09.2008 on the applicant on 17.04.2009 and the same was confirmed along with interest etc. by the CCE, Pune-III on the ground that the activity engaged in by the applicant fell under the category of "Commercial Training and Coaching Services".

IPR Services - Agreement provides for requirement of appellant's permission for transfer of knowhow by licencee to any other person who wishes to manufacture same product by using process developed by appellant - this itself indicates that there is no permanent transfer of IPR to licencee in agreement - pre-deposit ordered: CESTAT
AHMEDABAD, SEPT 17, 2012: A Service Tax demand of Rs.16,33,802/- along with interest and penalties under Sections 76 and 78 of Finance Act, 1994 has been upheld against the appellant by the lower authorities on the ground that they have not discharged ST under the category of Intellectual Property Rights service.

Cenvat Credit - Electricity produced in windmill situated away from factory transferred to Power Grid which in turn supplies same quantum to appellant's factory - Services used have been held to be Input Services - contrary decisions also available - pre-deposit waived: CESTAT by Majority
MUMBAI, SEPT 15, 2012: THE appellant has his factory in Raigad District of Maharashtra. They also have a wind mill farm situated in Satara District of Maharashtra wherein they generate electricity. The electricity so generated is supplied to the Maharashtra State Electricity Board (MSEB) and the MSEB in turn makes available equivalent quantity of electricity which is supplied to their manufacturing unit at Raigad. The appellant availed certain services at their wind mill farm at Satara and took credit of the service tax paid on such services at their factory at Raigad amounting to Rs. 2,17,882/-

BAS - Applicant were appointed by YBL as distributors of beer - whatever money was collected on retail sale was deposited in account of YBL - in balance sheet of YBL amount paid to applicant was shown as commissions on sales - pre-deposit ordered: CESTAT
KOLKATA, SEPT 14, 2012: IT is the case of the Revenue that the applicant during the period August 2005 to March 2010 received commissions from M/s. Yuksom Breweries Ltd.(YBL), Sikkim, but failed to discharge Service Tax on the same.

For ST under Tour Operator, tour is to be operated in tourist vehicle having any permit permissible under MVA - appellant are neither holding tourist permit nor having tourist vehicles, therefore, they are not liable to pay service on their activities for period prior to 10/09/2004: CESTAT
MUMBAI, SEPT 13, 2012: THE appellants are providing following services against the remuneration received by them:Bus reservation agreement,Seat reservation agreement,Nashik Darshan,Tour extension:

A one sentence order that appellant's claim is an afterthought is not sufficient – Commissioner (A) should have examined contract and given reasons as to why service cannot be classified as IPR service - case remanded: CESTAT
AHMEDABAD, SEPT 12, 2012: THE appellants are holding ST registration for the taxable services provided of Goods Transport Agency Service and Consulting Engineering Services. During scrutiny of the ST-3 returns for the period from April to September 09, it was noticed by departmental officers that the appellant had short paid service tax of Rs.1,20,032/- on the taxable value as shown in the ST-3 return for the services under the category of "Consulting Engineer Service".

Penalty - Whether Commissioner (A) order in favour of assessee means no penalty; matter referred to Third Member: CESTAT
NEW DELHI, SEPT 11, 2012: M/s Jas Enterprises, the respondent, was engaged in providing catering services to various customers. On investigation conducted by the Revenue, it came to light that they provided outdoor catering services to Madhav Institute of Technology & Science, Gwalior and a total payment of Rs. 7,75,540/- was received by the respondents during the period September, 2005 to October, 2006 on account of catering services.

Refund submitted after 07.07.2009 for exports prior to this date denied on ground that same not filed within 6 months – Board clarified that Notf 17/2009 does not bar applicability to exports done prior to clarification – claim has to be considered under notfn. 17/2009-ST only – matter remanded: CESTAT
AHMEDABAD, SEPT 10, 2012: THE refund claim filed by the appellant in respect of service tax paid on terminal handling charges has been rejected on the ground that terminal handling charges was not one of the services mentioned in Notification No. 41/2007-ST. Another ground taken for rejecting the claim is that it has been fixed beyond the six months period prescribed under the impugned notification.

Since assessee is selling electricity, for billing consumer it is essential to install meter - as such, any activity or service can easily be termed as service relating to distribution of electricity - benefit of s. 11C notification 45/2010-ST available: CESTAT
NEW DELHI, SEPT 07, 2012: THE appellant M/s PURVANCHAL VIDYUT VITRAN NIGAM LTD is engaged in the purchase of electricity from Uttar Pradesh Power Corporation Ltd. and transmitting it to various consumers within its jurisdiction.

A tax under Central Act cannot be discharged by paying tax under State Act - contention that since appellant were paying VAT they were not required to pay ST is without merit - no ruling to effect that service provider can pay ST or VAT at discretion - pre-deposit ordered: CESTAT
NEW DELHI , SEPT 06, 2012: THE appellants entered into a contact with M/s Hindustan Zinc Ltd. for maintaining and repairing their heavy dumpers for a period of five years. As per the contract they were charging consideration under two heads-one charging for manpower and logistics and other charging for maintenance and repair. The appellants were paying service tax on consideration received under the former head but were not paying service tax on the latter head.

Adjustment of excess payment of service tax on GTA service - Imposing another tax burden of equal amount along with interest and heavy penalties under three different Sections of law cannot be approved of: CESTAT
CHENNAI, SEPT 05, 2012: THE assessee is a State Government undertaking, manufacturing newsprint etc. They pay service tax on Goods Transport Agency Service as a recipient of service. According to the Service Tax Rules, 1994, the service tax liability for the month of March should be paid by 31 st March. As a matter of abundant caution, the assessee paid service tax in excess of their estimated liability for the months of March 2005 and 2006 and later, in the month of April next, adjusted the excess payments.

Turf Club gallops away from Rs 6 Cr tax demand – Fees charged from bookies, royalty from other racing clubs for live telecast & from caterers are not chargeable to Service Tax under BAS, Broadcasting, and IPR Services – orders deserve to be set aside: CESTAT
MUMBAI, SEPT 04, 2012: HE appellant is engaged in the activity of conducting horse races. During the horse race, licensed book makers (bookies in short) accept bets from public in the premises of Turf Club and these bookies have been provided stalls and other infrastructural facilities within the premises of the Turf Club. The Turf Club charges fees from the bookies in two components, one is fixed amount under the Head "Stall fees" and the other is variable amount under the Head "Commission" which is collected as a percentage of the betting amounts collected as a percentage of the betting amounts collected by such bookies.

Agency commission paid by foreign principal in convertible foreign exchange - assessee paid ST under bona fide belief that such services are covered under BAS - Board clarifying in year 2009 that such activity is covered under Export of Services Rules, and ST is not required to be paid - refund claim time barred: CESTAT
MUMBAI, SEPT 03, 2012: The assessee manufactures and exports telecommunication products. They entered into an agency commission agreement with their foreign principal. In terms of this agreement, they carried out marketing efforts to find Indian customers for the products manufactured by the principal. In return they were paid agency commission at specified percentage for the said services in the convertible foreign exchange which they realized through normal banking channel. Since assessee was under bona fide belief that the said marketing services amounted to Business Auxiliary Services in terms of Section 65 (19) of the Finance Act, 1994 read with 65(105) (zzb) of the Finance Act, they paid Service Tax at appropriate rates and in case of delayed payment of said tax they also paid penal interest.

Principles of Natural Justice not followed even in case of Rahul Dravid - Matter remanded for de novo adjudication: CESTAT
BANGALORE, SEPT 02, 2012: THE appellant (Rahul Dravid) filed two appeals against Service Tax demands of Rs.51,39,288/- and Rs.50,05,937/-, for the periods 2008-09 and 2009-10, respectively, determined by the Commissioner. The appellant as a player of cricket received fees from M/s Royal Challengers Sports Pvt. Ltd. (Royal Challengers) for playing IPL tournaments.

Cenvat Credit of Advertising Services - applicant advertising through channels for trading activity and reversing credit by adopting principle contained in CCR, 2004 - Stay petition allowed: CESTAT
MUMBAI, SEPT 01, 2012: THE assessee is engaged in the manufacture of packing material and they are also trading in the packing material as well as the machinery required for the manufacture of packing material.

Beneficiation of raw coal is not an activity classifiable under BAS - same is recognized as part of mining activity subjected to ST levy from June, 2007 - demand under BAS for period up to March, 2006 is not legal - penalty waived in terms of Sec 80: CESTAT
NEW DELHI, AUG 31, 2012: THE appellant entered into an agreement with Gujarat State Electricity Corporation Ltd., Maharashtra Electricity Generating Company and Reliance Energy Ltd., Mumbai for executing the work of beneficiation/washing of raw coal at its coal washery. After washing of raw coal, the cleaned coal and rejects are returned to the said parties for their captive consumption.

Legal infirmity in revisionary order in demanding tax under a category of service different from one for which demand was initially issued - Service recipient has taken godown on rent - this has to be seen as a case of tax planning rather than tax evasion - Appeal allowed: CESTAT
NEW DELHI, AUG 30, 2012: THE appellants were acting as a clearing and forwarding agent to M/s Chambal Fertilizers & Chemicals Ltd. They were registered with Service Tax Department as Clearing and Forwarding agent and were paying service tax on commission received for such activity. They had a separate contract with M/s Chambal Fertilizers & Chemicals Ltd. for giving their godown on hire for keeping of the goods for which they were acting as clearing and forwarding agent. On this consideration received, the appellants were not paying service tax.

Club or Association - treatment and recycling of effluents and solid waste - exempted : CESTAT
AHMEDABAD, AUG 29, 2012: THE appellant company has been incorporated in the year 1997, consequent upon the order of the High Court of Gujarat for the purpose of taking over the responsibility of operation of Common Effluent Treatment Plant from Gujarat Industrial Development Corporation (GIDC) for the purpose of treating the effluent discharged by the industries located in the GIDC area, Vapi. The industrial units located in the Vapi industrial area discharging hazardous effluents are compulsorily required to become a member of the appellant association for the purpose of getting their hazardous effluents treated in their plant as per the norms prescribed by GPCB (Gujarat Pollution Control Board). Appellants charge one time payment for providing the service and also charge from industrial units on monthly basis on the estimated cost of operation of the effluent treatment facility.

Demand confirmed is without authority of law and is not for recovering any loss of revenue that has occurred - It is based on 'heads I win tails you lose' type of argument adopted by Revenue in matters which are already decided against Revenue: CESTAT
NEW DELHI, AUG 28, 2012: THE appellants are engaged in manufacture of excisable goods part of which is exported. During the period 09-07-2004 to 30-09-2006 they received services of agents located abroad to promote sale of their goods abroad. As per Rule 2(1)(d)(iv) of Service Tax Rules 1994, in force at that time, the appellants were expected to pay service tax on services received from persons located abroad but they were not.

Prima facie activity of Maharashtra Knowledge Corporation Ltd is not in nature of business – therefore service rendered by applicant to MKCL does not fall under BAS – Pre-deposit waived and stay granted: CESTAT
MUMBAI, AUG 27, 2012: APPLICANTS are engaged in providing services to M/s Maharashtra Knowledge Corporation Ltd. (MKCL) in relation to –

HC decisions to prevail over decision of Tribunal and AAR – Construction of residential complexes on own land and selling residential units in such complexes not leviable to ST till date of insertion of Explanation on 01.07.2010 in sec 65(105)(zzzh) of Finance Act, 1994: CESTAT
NEW DELHI, AUG 26, 2012: THIS is a Revenue appeal against the order of the lower appellate authority involving three developers and the period involved is 16.6.05 to 25.3.06.

Applicant manufacturing liquid gases and supplying same to customers in cryogenic tanks installed by them at customer's premises - Leasing out of Storage tanks prima facie does not fall under Warehousing services – stay granted: CESTAT
MUMBAI, AUG 24, 2012: THE applicants are manufacturer of liquid gases and when they are clearing these gases to their customers they require a particular type of tank, cryogenic tank, having temperature minus (-) 2690C. The applicant has installed these tanks at the site of their customers where the gas is stored for a particular period of time as per their agreement.

Appellants carrying out jobwork on inputs received under rule 4(5)(a) of CCR, 2004 - to attract Service Tax under 'production of goods on behalf of clients' there would be three parties - since services undertaken by appellants is not covered by definition, no service tax is attracted: CESTAT
AHMEDABAD, AUG 23, 2012: THE facts are that the appellants had carried out job work during the period 2004-05 by way of converting the steel plates supplied by M/s. Swiss Glasscoat Equipments Limited into steel shells, agitators, baffles etc. and sending the goods back to the said supplier. So also, there is no dispute as to the fact that the appellants were working under the provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004.

Liquid helium imported and stored - tanks are exported within six months from importation - rent paid to foreign supplier for tanks - whether chargeable to ST - prima facie view is that since goods cannot be imported otherwise, appellants are not covered under Warehousing Services - Matter remanded: CESTAT
MUMBAI, AUG 17, 2012: THE applicants are manufacturer of liquid gases and for this purpose they import liquid helium from outside India. Since liquid helium is required to be stored in temperature of minus (-) 269 0 C, these gases are imported in a special tank and these tanks are required to be exported within six months from their importation in terms of the Customs laws.

Refund of ST - SEZ Unit - Jurisdictional CCE is also a member of Approval Committee and once Committee has seen merit in use of such service it was unwarranted for Revenue to question same - even if appellant was not eligible for refund under notfn. 09/2009-ST, they were certainly eligible for refund u/s 11B: CESTAT
MUMBAI, AUG 16, 2012: THE appellant filed refund claims towards the Service Tax paid on services consumed within the SEZ and services which were used in the authorized operations of the SEZ units. The refund claims were considered and partly sanctioned by the jurisdictional Assistant Commissioner and in further appeal some of them were partly allowed and some rejected.

Short payment of ST by Govt Telecom Co - Amounts paid by customers inclusive of ST were always in Govt account and this is just a matter of adjustment of money from one account of GOI to another account - there is no need to collect any interest in case of delay in deposit of ST – Penalty also correctly waived: CESTAT
NEW DELHI, AUG 14, 2012: THIS is a Revenue appeal. The dispute involved is the short payment of service tax of Rs.74,693/- by the GM, Telecom and delay in collecting and remitting service tax for the period 07/94 to 09/96.

Appellant engaged in distributing medical tools of non-resident for commission - prima facie, activity is not Export of Service - as per GATT, only when user and use of services are located outside India, transaction amounts to export - Pre-deposit ordered: CESTAT
MUMBAI, AUG 08, 2012: THE appellants are exclusive distributors of various medical equipments manufactured by M/s. VIASYS International Corporation, Pennsylvania, USA. Intelligence received by the DGCEI, Mumbai unit, indicated that the appellant was engaged in promoting, marketing and distributing the various medical equipment manufactured by VIASYS, in India, for which they are receiving commission and this service appeared to be liable to service tax under the category of ‘Business Auxiliary Services' w.e.f. 01/07/2003.

Advertising Services - Amount of 'Write backs' viz. amount retained by paying less to media than that received from client is prima facie chargeable to Service Tax – pre-deposit ordered of Rs 34 lakhs – ST prima facie not leviable on 'Volume discounts': CESTAT
MUMBAI, AUG 07, 2012: THE applicant undertook advertising work for their clients and which comprised of the following - (i) creation of advertising material and (ii) placement of advertising material in the media for display. For providing this service to their client i.e advertising they are getting certain commission and discharging the service tax liability. There is no dispute on that. The dispute is regarding the payments received by applicant for media cost.

Appellant, a merchant exporter of food grains, paid tax on GTA services and claimed refund – denial of refund on ground that they ought to have availed exemption under Notfn. 33/2004-ST and hence what has been paid is deposit is not proper – section 5A(1A) of the CEA, 1944 has not been made applicable to ST: CESTAT
MUMBAI, AUG 06, 2012: THE appellant is a merchant exporter of food items and had engaged the services of a transporter and a CHA for transport of the goods from the place of removal to the port of export. The service tax liability on the GTA services paid by the appellant and the ST paid by the CHA were claimed as refund in terms of Notification No. 17/2009-ST dated 7.7.2009 and the same was allowed by the lower adjudicating authority.

Commission paid to foreign service provider - before enactment of Sec 66A no authority vested by law to levy ST - so also since commission remained unpaid on 31.03.2006, same too would not be within purview of the demand - cum-tax benefit also requires consideration - no penalty: CESTAT
NEW DELHI, AUG 01, 2012: THE short issue is leviability of Service Tax on the commission paid to the foreign service provider. In adjudication proceedings a liability of Rs.72.18 lakhs along with associated penalties and interest was confirmed against the appellant by the Commissioner of Service Tax, Delhi .

CESTAT granting waiver of pre-deposit as appellant claimed that they had paid entire demand - on verification, it was found that only Rs.6 Crores had been paid - Order recalled and appellant directed to pay balance along with 25% penalty - Contempt initiated: CESTAT
MUMBAI, JULY 31, 2012: INITIATION of contempt proceedings by the CESTAT was a rare occurrence earlier. However, such instances are on the rise now.

Difference in receipts shown in IT and ST-3 returns - for same period after CERA conducted Audit and pointed out short payment, Internal Audit did reconciliation and made lower demand which was paid - duplication of demand - Matter remanded: CESTAT
AHMEDABAD, JULY 26, 2012: THE appellant is engaged in providing taxable services under the category of "Business Auxiliary Services".The CERA audit observed that the assessee had shown receipts as Rs. 2,46,22,757/- for the period from 2004-05 to 2006-07 in their Profit & Loss Account filed with the Income Tax return. However, in their ST-3 returns for the same period, the value realized was shown as Rs. 2,32,37,069/-.

Appeal against revision orders passed by Commissioner after 19.8.2009 - Appealable to Tribunal: CESTAT
BANGALORE, JULY 25, 2012: THE issue to be decided in this batch of cases is whether the Appellate Tribunal has jurisdiction to deal with the appeals, all of which are directed against revisionary orders passed after 19.8.2009 by Commissioners of Central Excise under the erstwhile Section 84 of the Finance Act, 1994.

Appellant availing Cenvat Credit of tax shown on invoices as paid by transport company – whether transporter has paid ST although as per rule 2(d)(v) of STR, 1994 he was not supposed to pay is to be ascertained after verification – Matter remanded: CESTAT
NEW DELHI, JULY 24, 2012: THE appellants are manufacturers of excisable goods. The invoices issued by the transport companies showed that service tax was paid by them on the freight amount. Accordingly, during the period January, 2005 to January, 2008 the appellant availed Cenvat Credit in respect of inputs services viz. Goods Transport Agency for transporting raw materials to their factory.

AS-7 is for ascertaining profit and loss of construction co and does not straight away reflect position of payments which is relevant factor for paying tax - Amounts received against taxable activities can be arrived at only if accounts are examined - amount confirmed - Stay granted: CESTAT
NEW DELHI, JULY 23, 2012: THE appellants are registered with the department for payment of Service Tax in respect of services of Construction of Residential Complexes. Pursuant to audit conducted, it was found that there was a difference between gross receipts shown in the profit and loss account and the value of service rendered by them as declared in their service tax return. Alleging that there was a short payment of Service Tax, a demand was issued which culminated in an order by the CCE, Meerut confirming tax amount of Rs. 67,20,597/- along with interest and penalties under sections 76 and 78 of the Finance Act, 1994.

Appellant collecting consideration for plant operation - clients supplying electricity cost-free – fact that cost of electricity used in manufacture of oxygen has to be considered to determine excise duty payable on oxygen does not mean that electricity cost has also to be considered in determining value of taxable services: HC
MUMBAI, JULY 17, 2012: THE appellant entered into an agreement with their customers M/s Sunflag Iron & Steel Co. Ltd., Bhandara and M/s Lloyds Steel Industries Ltd., Wardha for plant operation and maintenance and for the services rendered they had received consideration from the clients on which service tax liability was discharged.

Turf Club gets Stay of Rs 6 crore Service Tax demand – Fees charged from bookies, royalty income received from other racing clubs for live telecast and caterers who were permitted to use infrastructural facilities are prima facie not chargeable to Service Tax – Stay granted: CESTAT
MUMBAI, JULY 13, 2012: THE appellant is engaged in the activity of conducting horse races. During the horse race, licensed book makers (bookies in short) accept bets from public in the premises of Turf Club and these bookies have been provided stalls and other infrastructural facilities within the premises of the Turf Club. The Turf Club charges fees from the bookies in two components, one is fixed amount under the Head "Stall fees" and the other is variable amount under the Head "Commission" which is collected as a percentage of the betting amounts collected as a percentage of the betting amounts collected by such bookies.On the aforesaid amounts collected for the period from 01.04.2003 to 30.06.2006, a show-cause notice was issued demanding service tax of Rs. 1,19,61,049/- under two categories – the royalty/commission received from the clubs was categorized as ‘Broadcasting Services' and royalty/commission received from bookies and caterers were categorized as ‘Business Support Services'.

Bombay Flying Club cannot fly away from Service Tax liability – Conducting Training courses in Aircraft Maintenance Engineering and Flying School and overhauling work of aircrafts is prima facie taxable under Service Tax – Pre-deposit of Rs 1.5 Cr ordered: CESTAT
MUMBAI, JULY 12, 2012: BOMBAY FLYING CLUB (BFC) has been established in 1928. Organization is approved by Director General of Civil Aviation Government of India NEW DELHI to give ab-initio training in the field of Pilot and Aircraft maintenance engineering for obtaining Commercial pilot license (CPL) and Private pilot license (PPL) and basic license in Mechanical stream {Heavy Aeroplane (HA),Jet engine(CT)} and Avionics stream {Electrical system(ES),Instrument system(IS),Radio navigation (RN)}.

Cenvat - If after sale service expenses collected by dealers are included in assessable value u/s 4 of CEA, 1944, assessee is entitled for input service credit of service tax paid thereon by dealers – Revenue appeal dismissed and appeal by assessee remanded: CESTAT
MUMBAI, JULY 11, 2012: THE issue is as to whether the assessee is entitled to avail input service credit on after sales service charges paid by the dealers.

Port Service - Very fact that matter had been referred to Larger Bench would show that two views were possible – appellant is a government organization with no ulterior motives at profiteering - against adjudged dues of more than Rs 3 cr, pre-deposit ordered of Rs.25 lakhs: CESTAT by Majority
AHMEDABAD, JULY 09, 2012: GUJARAT Maritime Board is a provider of port service. The appellant entered into an agreement with M/s Gujarat Ambuja Cement for construction of two captive jetties. The cost of construction was to be initially borne by M/s Gujarat Ambuja Cement and expenditure incurred for construction of said 2 jetties was to be adjusted against the wharfage charges by way of rebate/ concession till the capital cost is recovered. Such rebate/concession in the wharfage charges for the period 1.4.2004 to 31.3.2007 amounted to Rs.24,71,61,887/-. In addition, the appellant also collected lease rent for water front charges and leave way facility compensation amounting to Rs.1.25 crore during the same period.

Service Tax not payable for service provided to immovable property under category of Repairs and Maintenance Service during period prior to 10.09.2004 - No merit in appeal filed by Revenue: CESTAT
AHMEDABAD, JULY 06, 2012: THE Respondent (M/s GE Nuova Pignone) is a corporation governed by the laws of Italy has been providing the maintenance and repair services to their customers including supply of spare parts required. The respondent had obtained Service Tax Registration under the category of 'Maintenance or Repair Services' and paying service tax in respect of the maintenance fees after deducting the value of spare parts supplied in terms of Notification No.12/2003-ST dated 20.6.2003, which grants exemption from service tax on so much of the value of taxable services as is equal to the value of the goods and materials sold by the service provider to the recipient of service. Revenue took a view that respondent was not eligible for exemption Notification No.12/2003-ST dated 28.6.2003.

Service Tax is not leviable on discounts received by advertising agency from media - A discount is reduction in price given to buyer of goods or services - a receiver of services cannot be considered as agent of service providerso as to be charged to Tax under BAS - Stay ordered: CESTAT by Majority
MUMBAI, JULY 05, 2012: THE appellant rendered the services of advertising agency and discharged service tax on the commission received by them from their client, the advertiser. The transaction involves three parties, the advertiser, the advertising agency and the media which puts out the advertisement. Print media has been exempted from service tax while the broadcasting media is not and they have discharged service tax under the broadcasting services on the consideration received. In certain cases, the media (broadcaster), gave a volume discount to the advertising agency based on the volume of business given by the advertising agency, at the end of the year which was shown as income in the books of accounts of the advertising agency.

Services provided by Bank in relation to payment of pension, RBI Bonds and EPF are NOT taxable services - So also, services of treasury service where Govt does not have own treasury and Bank maintains currency chests is also NOT taxable service: CESTAT
HYDERABAD, JULY 03, 2012:AHME PURSUANT to investigation and issuance of a show-cause notice, it was held that services provided by Canara Bank in relation to payment of pension, transactions of various departments, public deposit, RBI Bonds, EPF, special deposit scheme, senior citizens saving scheme, compulsory deposit scheme are to be treated as taxable service. So also, the services of treasury service where the government does not have its own treasury and Canara Bank maintains currency chests on behalf of Reserve Bank of India (RBI) were also treated as taxable services. In sum, the adjudicating authority viz. Commissioner of Service Tax (LTU), Bangalore confirmed the demand of service tax of Rs.5,97,47,205/- with interest and also imposed penalty under Sections 76, 77 and 78 of Finance Act, 1994.

Applicants have taken over activities of managing Hotel themselves - If they themselves are managing affairs of organization, prima facie, it does not fall under 'Management Consultancy Service' – Pre-deposit of Rs. 8 Cr of adjudged dues waived and stay granted: CESTAT
MUMBAI, JULY 02, 2012: M/s Lokhandwala Hotels Pvt. Ltd. (LHL) was running a hotel in the name of ‘Regent Hotel'. Mumbai. The hotel was incurring losses and they owed about Rs 331 crores to various persons and about Rs.95 crores to ICICI Trustship Services Ltd..The hotel business of ‘Regent Hotel' was acquired by M/s Indian Hotels Company Ltd. (IHCL) - the applicants. An agreement was entered into between the applicants, LHL and ICICI Trustship Services Ltd., as ICICI was ready to pay the loans of various other parties payable by LHL to the tune of Rs.331 Crores for settlement of repayment of loans and transaction of transfer of the ownership right to the applicants. As per the agreement, the share of the ICICI Trustship Services Ltd. was 80.1% and the share of the applicant was 19.9% and a new Company was formed and named as ‘Taj Lands End Ltd '. As per the said agreement, the applicants took over the activities of the hotels such as develop, conduct, operate, manage, renovate, modernize and carry out all activities of incidental and ancillary business to the business of hotelering or otherwise.

Banking & Financial Services - Appellant borrowing funds under scheme of ECB - commitment charges & agency fee whether chargeable to Service Tax under reverse charge mechanism - prima facie case for full waiver of pre-deposit - Stay granted: CESTAT
MUMBAI, JUNE 28, 2012: THE facts of the case are that the appellant had borrowed funds under the scheme of External Commercial Borrowing (ECB) from various foreign lenders including International Finance Corporation (IFC) and Asian Development Bank (ADB) to augment fund requirement for its upcoming UMPP at Mundra. In respect of the loans taken from ADB and IFC apart from the payment of interest, the appellant also made certain other payments i.e commitment charges, up-front fee, arrangement fee, agency fee and out of pocket expenses to the lenders.

Cable Operators service - Retransmitting TV signals to various cable subscribers - If appellants have paid tax for obtaining signal from their service provider they are entitled for input credit - since this issue was not raised before adjudicating authority, matter remanded: CESTAT
MUMBAI, JUNE 27, 2012: THE appellants were operating as Multi Service Operator (MSO) in TV cable operation business as a commission agent and distributor of M/s Win Cable & Datacom Pvt. Ltd. by retransmitting TV signals to various cable subscribers. For these services, they were earning commission from the signal supplier on which they were not paying the service tax.

Collection of Passenger Service Fees from passengers on behalf of AAI - collection charges obtained thereon from AAI is prima facie chargeable to tax under category of BSS and not BAS - stay granted: CESTAT
MUMBAI, JUNE 26, 2012: JET Airways is the applicant seeking a Stay of the Service Tax demand of Rs. 1.05 Crores confirmed against them along with interest and penalties by the CCE, Thane-II.

Applicant supplying labourers to company and getting commission on which they pay Service Tax – Department seeking ST on gross salary paid to said employees – Pre-deposit ordered: CESTAT
MUMBAI, JUNE 25, 2012: THE applicant is a service provider and is registered under the category of “Manpower Recruitment and Supply Agency Services”. They supply labourers to M/s Paranjape Auto Cast Pvt. Ltd. and they get commission. On this commission, they paid the service tax regularly. The department was of the view that the gross salary paid to the employees has to be taken into account for paying the service tax. Accordingly, a Service Tax demand of Rs.3,43,795/- was issued and the same was confirmed against the applicant.

A bald order does not get sanction of law unless it is speaking and reasoned - Reading of adjudication order and appellate order does not appeal to common sense as to how liability arose - to prevent wastage of time, matter remanded to original adjudicating authority: CESTAT
NEW DELHI, JUNE 23, 2012: NO one expects the CBEC to direct its adjudicating and lower appellate authorities to attend a refresher Course at NACEN on SCN, Adjudication and Appeals for these courses are always conducted for the Inspectors and Superintendents – and rightly so…because they are the ones who prepare…well almost…the SCN.

Whether air freight can be considered as input service – An interpretation that merely because as per export contract, goods have to be delivered at customer's premises, place of removal is extended to a place outside India is absurd – export contract cannot determine place of removal: CESTAT
MUMBAI, JUNE 21 , 2012: THE appellant, a manufacturer, availed Cenvat Credit of Rs.1,49,184/- towards service tax paid on courier services and outward air freight. The department was of the view that there is no nexus between the services availed and the manufacture of the goods and hence they were not entitled for the cenvat credit. On pointing out, the appellant reversed a credit of Rs.18,105/- towards courier services and contested the eligibility to credit of service tax paid on air freight.

Benefit of Notfn 12/2003-ST – Commercial training and Coaching Institutes - when language of Notification does not restrict exemption only to 'standard text books' sold, same cannot be whittled down by Board Circular 59/08/2003-ST – Demand of Rs 2.8 Cr set aside and appeal allowed: CESTAT
MUMBAI, JUNE 20, 2012: WE were wrong when we reported this case on 6 th November, 2007 [See - (2007-TIOL-1714-CESTAT-MUM) ] concerning the order on the Stay Application filed by the Coaching classes and when the CESTAT had found a prima facie case for total waiver of pre-deposit of a Service Tax demand of Rs.2.82 Crores.

Explicit mention in notification is 'services provided for consumption 'within' such SEZ' - as such, services consumed outside such zone will not be entitled for benefit of exemption - being a conditional exemption cannot be interpreted on basis of provisions of SEZ Act, 2005 – Pre-deposit ordered of Rs One Crore: CESTAT
MUMBAI, JUNE 19, 2012: THE appellant is engaged in rendering of services of Custom House Agent, Clearing and Forwarding Agent, Storage and Warehousing, Business Auxillary Service, Transport of goods by road and Business Support Service, etc. During the course of audit it was noticed that the assessee was wrongly availing exemption of service tax under Notfn. No.4/2004-ST dated 31/03/2004 for the CHA services rendered outside the unit situated at Special Economic Zone, Chennai .

Appellant providing Compliance Services - view of CBEC that ordinary meaning of management will not cover Compliance Services concurred with - If public act relying on such circulars and still charge of suppression is slapped it can be worst travesty of justice: CESTAT
NEW DELHI, JUNE 19, 2012: THE Appellants are YOUNG and also E(a)RN(e)ST. During the period 2001-02 to 2004-05 they provided assistance as required for complying with the regulation of Reserve Bank of India, Foreign Investment Promotion Board etc. and also for filing application for import export code, returns under Income Tax Act, returns with the office of Registrar of Companies, sales tax returns etc. which activities are collectively referred to as "Compliance Services".

Refund – Notfn 09/2009 - argument of department that refund will be available only for services rendered on or after 03.03.2009 does not appear to have any legal basis - only requirement is that ST on services should have been paid on or after 03.03.2009 - it is immaterial when services had been rendered: CESTAT
MUMBAI, JUNE 18, 2012: GETTING a refund is a very tough. The appellant are a SEZ status holder for generation of electrical energy. They filed a refund claim of service tax of Rs.2,04,86,165/- on 29.09.2009 for the period from March, 2009 to July, 2009 in terms of Notification No. 09/2009-STdated 3rd March, 2009 as amended.

Financial disaster averted! Government amends Section 68 of the Finance Act, 1994 by executive Order: IST
NEW DELHI, JUNE 16, 2012: IN a first of its kind in the legislative history of India a Finance Act that was passed by the Parliament and assented by the President has been amended by an executive Order of the Central Government. The jury is out on the legal correctness of this move.

Penalty - Penalty is not automatic - For Penalties under Sections 76, 77 and 78 of Act, not only ingredients of those Sections should exist, but also there should be absence of reasonable cause for said failure: High Court
BANGALORE, JUNE 04, 2012: IN these batch of cases, the power of the authorities to impose penalties and the power of the revisional authority to enhance penalties and scope of Sections 76, 78 and 80 of the Finance Act, 1994 is involved.

Rule 5 of CCR, 2004 - If assessee is providing taxable service, although they are exempt by way of notification, but have been exported, then assessee is entitled to take input service credit – demand of more than One Crore set aside: CESTAT
MUMBAI, JUNE 01, 2012: THE appellant is engaged in the activity of 'Business Process Outsourcing and Collection of Services'. These services are classified by the appellant under the category of 'Business Auxiliary Services'. As the service recipient is located outside India, therefore, the appellant availed input service credit, but as their service was exempt by Notification No. 8/2003dated 20/06/2003 they could not utilise the CENVAT credit. They filed a refund claim under Rule 5 of the CENVAT Credit Rules, 2004.

Revenue on a winning spree - CESTAT Chennai upholds demand of service tax on residential flats constructed under joint development agreement
CHENNAI, MAY 31, 2012: IT was only yesterday that we reported the order of CESTAT Bangalore, upholding the demand of service tax on irrigation works undertaken for State Governments under Works Contract service. This is yet another case where the Chennai bench of CESTAT has upheld the demand of service tax on construction of residential complexes under joint development agreement entered into with the land owners.

EPC Contracts for State Irrigation Projects – Taxable under Works Contract Service: CESTAT
BANGALORE, MAY 30, 2012: NO dam (what is a dam – it is not defined in the Act or Rules) could stop the flow of Revenue. In a mega judgement running into 55 pages and nearly 13000 words, the CESTAT categorically held in favour of Revenue that the EPC contracts for the irrigation projects of the State Government were covered under works contract service and liable to tax. The appellants are now stuck with a Service Tax demand, penalty and interest of about Rs. 40 Crores.

Valuation - Stock Broker Service - No amount other than commission or brokerage made by a stock broker is covered in ambit of assessable value of service: CESTAT
NEW DELHI, MAY 25, 2012: THE dispute in all the appeals relates to the inclusion of certain charges like Demat Charges, Turnover charges, BSE Charges, SEBI Charges etc in the taxable value. It is the case of revenue that all these charges are includable in the taxable value under the provisions of Section 67 of the Finance Act, 1994.

Providing of space for advertising by way of billboard or on buses comes under purview of service tax with effect from 1.5.2006 after introduction of a separate entry – Strong prima facie case in favour – Pre-deposit waived and stay granted: CESTAT
MUMBAI, MAY 22, 2012: THE applicants are engaged by the Ministry of Tourism, Government of India to organize media plan of campaigning advertisement of " India as Tourist Destination " in the print, electronic media and outdoor hoardings outside India. Revenue is of the opinion that the activities undertaken by the applicants in respect of arranging outdoor advertising in the foreign countries are liable to service tax under the category of advertising agency. A Service Tax demand of Rs.43,46,618/- was confirmed by the Commissioner of Service Tax-I, Mumbai along with interest and penalties under Section 76 and Section 77 of the Finance Act, 1994.

Creditors approaching HC for liquidation of co for recovery of dues - accordingly, Co was leased to M/s Ferro Alloys and all employees engaged; salaries and other expenses were paid - Service Tax demand raised under category Manpower Supply Services - pre-deposit of Rs 50 lakh ordered: CESTAT
MUMBAI, MAY 21, 2012: THE applicant was engaged in the business of manufacture of Steel Ingots but due to heavy losses in steel industry, they could not run the factory. Due to this reason, the company was unable to clear the dues to its creditors. Therefore, the creditors approached the Bombay High Court for liquidation of the Company for recovery of their dues. Before the High Court, an arrangement was made and as per the arrangement the plant was leased out to M/s. Ferro Alloys Corporation Ltd. , on Leave and License agreement. This agreement is being renewed from time to time. Arrangements were made like, all the employees of the applicant were engaged by M/s. Ferro Alloys Corporation Ltd. (FACOR in short) and their salaries, service charges and other office expenses should be paid by M/s. FACOR and the applicant will disburse to the respective employees. The department smelt a Service Tax case. A demand of Rs.3,86,10,642/- was made against the applicant asking them to pay Service Tax on the reimbursement made by M/s FACOR to the applicant under the category of Manpower Recruitment and Supply Agency Service for the period 16.06.2005 to 31.5.2009.

Merely because appellant has also provided driver in terms of contract, it does not mean that contract is not for renting of cabs - consideration is received as renting charges, therefore, activity undertaken squarely falls within definition of rent-a-cab service – Pre-deposit ordered: CESTAT
MUMBAI, MAY 18, 2012: THE appellant is engaged in providing medium and mini type buses to Pimpri Chinchwad Municipal Transport (PCMT) to cater to the needs of commuters in and around Pimpri-Chinchwad and Pune city. The Maharashtra Government had accorded its approval for hire of buses on lease from contractors for operation on the routes falling in the PCMT on stage carriage basis. Accordingly, PCMT had entered into lease agreements with the appellant for plying of buses.

Construction of Residential Complex - Construction of residential quarters for Indian Army and WB Power Development Corp – Not taxable since service meant for 'personal use' of Govt - Board Circular - Stay Granted
KOLKATA, MAY 09, 2012: THE Applicant is engaged in the construction of residential quarters for Indian Army and West Bengal Power Development Corporation Ltd (A West Bengal Govt. Undertaking). The contention of the applicant is that they are directly engaged for constructing residential complex for Army and West Bengal Power Development Corporation Ltd (WBPDCL).

If communication from AC contains determination of question by application of objective standards and it imposes obligation, such communication would become appealable order – matter remanded: CESTAT
MUMBAI, MAY 08 , 2012: THE appellant is engaged in the manufacture of excisable goods and are also the providers of taxable services of Renting of Immovable property, Goods Transport Services, etc. The appellants got a factory constructed and paid service tax on commercial construction services. They availed Cenvat credit in respect of service tax paid on the construction services in providing services of renting of immovable property as they had rented out the factory premises

Since appellant has reversed Cenvat credit availed on input services along with interest, same shall be interpreted as if appellant has not availed Input service credit – benefit of notfn. 1/2006-ST available: CESTAT
MUMBAI, MAY 07, 2012: THE facts of the case are that the appellant are engaged in providing construction services i.e construction of commercial building and residential complexes. The appellant were availing the benefit of notification 15/04-ST in relation to commercial construction and notification 18/05-ST in respect of residential construction which provides an abatement of 67% from the gross value received of the service provided by them if the appellant has not availed the CENVAT credit on inputs/capital goods. On 01.03.2006, notification 1/2006-ST came into force and as per the said Notification abatement of 67% was available only in case where the CENVAT credit of input/capital goods/input service is not availed by the assessee.

Principal can deduct Service Tax from Bills of contractor: Supreme Court
NEW DELHI, MAY 01, 2012: THIS appeal is directed against the judgment and order dated 25.2.2008 rendered by a Division Bench of the Bombay High Court confirming the decision of a single Judge of that court dated 4.7.2005 in Arbitration Petition No.364 /2004, whereby the High Court has set aside the award dated 25.5.2004 passed by a sole arbitrator which award had dismissed the Claim Petition of the respondent against the appellant herein