Cenvat Credit - Services utilized for erection and installation of Ammonia Storage tank outside factory premises to store imported inputs - since taxable services are covered under definition of input service, stay granted: CESTAT
MUMBAI, APR 30, 2012: A show-cause notice was issued for denial of credit on the ground that the services were utilized for the construction/erection and installation of Ammonia Storage Tank outside the factory premises (at the port) and hence are not covered under the definition of input services as provided under CENVAT Credit Rules, 2004.

Tour Operator - Providing buses for transportation of ONGC officers - Not rent a cab service: CESTAT by Majority
AHMEDABAD, APR 27, 2012: THE assessee is engaged in the business of providing services of tour operator and rent-a-cab scheme operator as defined under Section 65 of Finance Act, 1994. The assessee obtained registration as a rent-a-cab operator on 14.10.02 and as a tour operator on 15.06.02. In the impugned order, the Commissioner has held that assessee is liable to pay service tax of Rs.32, 00,391 /- towards tour operator service and rent-a-cab service during the period from 01.04.2000 to 31.05.2004 with interest as applicable. Further penalties have been imposed under various Sections of the Finance Act, 1994

Share transfer agent - Postage charges recovered from principal on actual basis for despatching documents to transferee – prima facie applicant not liable to pay ST on postage charges in view of rule 5(2) – stay granted: CESTAT
MUMBAI, APRIL 24, 2012: THE applicants are share transfer agent and registry to issue. They are acting as an agent of the Company in processing application for shares and despatch letters, refund orders certificate and other related documents in respect of the issue. As they are processing the share transfer and despatch the transfer certificate to the transferee, therefore, they are paying postage on those despatches which they recover from principal on actual basis. The case of the department is that applicants are liable to pay service tax on the total remuneration received from the clients as per rule 5(1) of the Service Tax (Determination of Value) Rules, 2006. Accordingly, a service tax demand of Rs.85,60,425/- along with interest and various penalties under the Finance Act was confirmed against the applicants by the Commissioner of Service Tax, Mumbai.

Commercial and Industrial Constructions Service – Value of Dam, Roads & Tunnels executed under Single Composite Contract is vivisectable - Larger Bench decision of Tribunal in BSBK Pvt. Ltd relied on - Stay Granted: CESTAT
BANGALORE, APR 23, 2012: DEMAND is on Construction of Dams, Roads, Tunnels and Bridges done by the Appellant in connection with execution of Composite Contracts awarded by various agencies. Appellant contented that entire activity of obtaining approvals from Government and financial Institutions, obtaining other statutory clearances, preparation of Tender Documents, Site Clearances, Topographical Survey, Construction of Temporary buildings etc. to finishing work on Dams, Roads and other structures was undertaken under a Single Composite Contract. Appellant contended that they were entitled to exclude Dams, Roads, etc. from the taxable value in terms of the Definition of Commercial and Industrial construction service under Section 65 (25b) of the Finance Act, 1994. Appellant relied on the decision of the Larger Bench decision of the Tribunal in the case of CCE, Raipur Vs. BSBK Pvt. Ltd. -2010-IST-218-CESTAT-DEL-LB as also the Tribunals' decision in Vashushilpi Projects & Consultants (P) Ltd. Vs. CCE, Bhopal -2012-IST-37-CESTAT-DEL

Transportation of empty container to factory and after-stuffing sent to port of export - Cenvat Credit of Goods transport services admissible – although notfn. 18/2009-ST exempts taxable service received by exporter, credit available to exporter: CESTAT
MUMBAI, APR 20, 2012: THE appellant is engaged in the manufacture of excisable goods namely Viscose Filament Yarn and chemicals and has availed the Cenvat Credit in respect of goods transport services for transportation of empty container to the appellant's factory at Shahad for stuffing of export final products and re-transportation of stuffed container to the port of the export. The department was of the view that CENVAT credit in respect of GTA services in bringing empty container to the factory and after stuffing being sent to the port of export was not admissible to the assessee.

Residential flats - sale of fully built flats - not taxable before Finance Act 2010 came into force: CESTAT
NEW DELHI, APRIL 18, 2012: IN this proceeding, eight appeals filed by Revenue against different Respondents are being considered together. These cases are being taken up together because the main issues involved in all these appeals are the same. The Respondents are builders/promoters for constructing residential complexes. They identify prospective buyers for flats and enter into agreements for sale of constructed flats and take money from the persons with whom they had agreements to sell the built flats. They finally transfer the built flats to the buyers and register it in the names of the byers. The period involved was prior to enactment of Finance Act, 2010. The question involved in these appeals is whether the respondents were doing any service for the prospective buyers or were doing the construction activity for themselves and were only engaged in sale of flats with no component of service to the buyers. This matter has been a subject matter of many disputes.

Clearing and forwarding - Tribunal dismisses appeal for non-compliance of pre-deposit - Dismissal confirmed by High Court
MUMBAI, APRIL 17, 2012: DURING the years 1999-2000 to 2002- 2003 the assessee had received Rs . 19,31,10,857/- as commission from eighteen parties. According to the assessee , the amounts received by them were for procuring orders on behalf of their principals, which did not constitute taxable service and hence were not liable to pay service tax.

Input Service Distributor – no bar exists in rule 7 of CCR, 2004 from taking Cenvat Credit in respect of invoices prior to date of registration – Prima facie strong case in favour - Pre-deposit waived and stay granted: CESTAT
MUMBAI, APR 16, 2012: THE issue involved in the case is that applicant had distributed CENVAT credit in respect of input services prior to registration as “Input Service Distributor”. On being pointed out, the assessee reversed the credit availed by them and thereafter “Input Service Distributor” registration was granted to them on 02.01.2007.

Persons like Poojari, cook, yoga teacher and nurse supplied by Manpower Recruitment or Supply Agency Service have no nexus with manufacture of final product - Not an input service - Pre-deposit ordered of Rs.15 lakhs: CESTAT
MUMBAI, APR 12, 2012: M/s JSW Steel Ltd. is before the CESTAT with an application for waiver of pre-deposit of duty of Rs.58,55,434/-, interest and penalty confirmed/imposed by the CCE, Thane.The demand has been confirmed after denying the credit of Service Tax paid on the taxable services of Manpower Recruitment or Supply Agency Service.

Rent a cab service provided to ONGC by land losers - Penalty Quashed: Gujarat HC
AHMEDABAD, APRIL 11, 2012: THE appellant is a Co-operative Society rendering rent-a-cab service to M/s ONGC since many years. This service was provided under the contract agreement dated 21/12/99. Initially, as there was no levy on rent-a-cab service at the relevant date of agreement, there was no condition relating to payment of service tax in the contract. With effect from 1/4/2000, levy of service tax was introduced on rent-a-cab service. This being a new levy, it is the the appellant that they were unaware of legal provisions and moreover, there was confusion regarding such liability of the appellant. Thus, on both the grounds the applicability of the service tax and the liability to pay the same being an ambiguity, no service tax was paid at the relevant point of time.

Charges for pipes & measuring equipment at time of providing new gas connection - Prima facie liable to tax - Pre-deposit ordered: CESTAT
AHMEDABAD, APR 10, 2012: M/S Adani Gas Ltd. (appellant) is engaged in manufacture and distribution of Compressed Natural Gas and is registered for providing taxable services under the category "Transportation of goods through pipelines''.

Appellant manufacturing Aluminium structures and clearing on payment of duty for providing Construction Services on which Service Tax is paid by claiming benefit of Notification No.1/2006-ST - CENVAT Credit denied since no credit availed on Amuminium strucutures - Stay allowed : CESTAT
MUMBAI, APR 09, 2012: THEappellant availed CENVAT Credit in respect of the inputs used in the manufacture of aluminium structures which were cleared on payment of appropriate duty. These structures were further used for providing ‘Construction Service' and on this service the applicant paid Service Tax by claiming the benefit of Notification 1/2006-ST.

Identical questions pending before CESTAT -No Advance Ruling : AAR
NEW DELHI, APR 04, 2012: THESE applications are filed before the Authority invoking Section 96(C) of the Finance Act, 1994. According to the applicants, they being subsidiaries of Gujarat State Petronet Limited, which itself is a subsidiary of Gujarat State Petroleum Corporation Limited, are eligible to apply in terms of the notification issued under section 96A (b)(iii) of the Act.

Payment made by UBI to Society for Worldwide Inter-bank Financial Telecommunication for transfer of funds to member Banks is liable to tax on reverse charge basis – Pre-deposit ordered: CESTAT
MUMBAI, APR 03, 2012: THE issue before the CESTAT is as to ‘whether the payment made by the applicant (Union Bank of India) to Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) for transfer of funds to member Banks is liable to service tax or not.

Intellectual Property - Using brand name of motorcycle company on Oil Company's products - Taxable Service: CESTAT
NEW DELHI, APR 02, 2012: THE appellant M/s. Hero Honda Motors Ltd. entered into an agreement with M/s. Bharat Petroleum Corpn . Ltd., M/s. TIDE Water Oil Co. Ltd. and M/s. Savita Chemicals Ltd. BPCL, Tide Water and Savita Chemicals were permitted to use the brand name of 'Hero Honda' and 'Hero Honda 40T ' on the containers of the products manufactured by them, for the purposes of marketing and promoting their said products. Further M/s. Hero Honda has reserved their right to grant the said use of the trade mark to any other manufacturer. Similarly, the other parties of the agreement also reserved their rights to market their range of products under the brand name/trade name of other manufacturers. All the three parties with whom the appellant entered into a contract were engaged in processing, branding and compounding of oils.

Tribunal allows CENVAT Credit on CHA Service as there was no exemption for services used in export of goods prior to 7.7.2009
CHENNAI, MAR 30, 2012: THE question before the Tribunal was whether the appellant is entitled for CENVAT Credit of service tax paid on CHA Service. The said service was used for export of goods. Before the Tribunal, the appellants cited a number of judgements wherein the benefit of CENVAT Credit had been extended to the CHA service by holding that the place of removal in case of goods exported is the port of shipment. However, the Tribunal did not find that the said case laws are well founded due to the following reason:

Since 'Manpower Recruitment or Supply Agency Service' came into tax net before 'Ship Management', prima facie, appellants are liable to discharge tax liability – Pre-deposit ordered of Rs 85 lakhs: CESTAT
MUMBAI, MAR 28, 2012: THE officers of DGCEI searched the premises of the appellant M/s Safe & Sure Marine Services Pvt. Ltd. and recovered incriminating documents under a Panchanama. It was noticed that the appellant are rendering manpower supply services to various shipping companies such as M/s ABG Shipping, M/s Pranik Shipping, M/s South India Corporation Agency Ltd. (SICAL), M/s Essar and are in receipt of sums of money towards the wages/salaries of the officers and crew members so supplied in addition to service charges for the service rendered.

Notifications No. 15/2004-ST and No. 1/2006-ST allow assessee to not avail credit and pay Service Tax on contract value in respect of 'one' contract and avail abatement and not avail CENVAT credit in respect of 'another' contract – matter remanded: CESTAT
MUMBAI, MAR 26, 2012: THE appellant is registered as a Service Tax assessee under the category of ‘Commercial and Industrial Construction'. They had entered into contracts with their various clients for setting up of power plants at various sites which involved supply of goods as well as supply of services.

Activity of storage and retrieval of records of banks and corporate houses viz. discharged cheques, vouchers, etc. not intended for sale and not having commercial value not leviable to Service Tax: CESTAT
MUMBAI, MAR 23, 2012: THE appellant is registered service tax assessee under the category of ‘Business Auxiliary Service'. In addition to the aforesaid services provided, they were raising bills on their clients for (a) segregation and packing charges (b) storage charges (c) retrieval charges, on which they were not discharging any service tax liability.

Service Tax paid for services of maintenance of staff colony and planation held eligible for CENVAT credit: AP High Court
HYDERABAD, MAR 22, 2012: THESE appeals by the Revenue are against the common order dated 13.05.2009 passed by the CESTAT [ 2009-IST-482-CESTAT-BANG ] . By the said order, the CESTAT upheld the entitlement of the respondent Company to the input service tax credit availed by it in respect of maintenance of its staff colony and plantation.

Service rendered for construction of buildings under re-development scheme does not come under definition of 'construction service' - however, construction of civil structure is prima facie chargeable to Service Tax - Pre-deposit ordered: CESTAT
MUMBAI, MAR 15, 2012: THE applicant Sandeep Vilas Kotnis is engaged in the activity of civil construction. During the period September, 2004 to March, 2008, the applicant undertook civil construction activity for MHADA, MTDC and BSNL.

Appellant marketing vacations conducted by foreign principals - since no SCN was issued and no adjudication order passed, no appeal was maintainable before Commr (A) - as such order passed by Commr(A) is not an order in eyes of law - Appeal allowed: CESTAT
MUMBAI, MAR 09, 2012: THE appellants are engaged in the business of promoting and marketing vacations and trips conducted by foreign principals as “General Sales Agent”. To back up this activity, the appellants appointed Travel Agent for booking the tickets and those travel agents after booking the tickets and deducting their commission, they paid the balance amount to the appellants, on which they have discharged the Service Tax liability. Thereafter, the appellants after deducting their commission sent the remaining amount to the Foreign Service recipients.

Appellant paying VAT to State Govt on sale of SIM cards and under bona fide belief Service Tax was also paid under same challans – later, amount transferred to Central Govt account - matter remanded for verification: CESTAT
MUMBAI, MAR 07, 2012: THE facts of the case are that the appellant are engaged in the activity of selling of SIM cards and registered with the service tax department. They are paying service tax regularly but not on proper challans of the Central Government, but they are depositing the same to the State Government and not filing their regular returns.

Repairs, renovation & widening of roads is not Commercial or Industrial Construction Service - - stay granted: CESTAT
MUMBAI, MAR 06, 2012: THE appellant is engaged in the services of repair, renovation, widening of roads and construction of toll sheds, providing electrification of high mast poles at toll sheds etc. to various Government organizations.

Service TAx paid by job-worker although entitled to exemption notfn. 8/2005-ST since Revenue has accepted tax paid and no action has been initiated against job worker, prima facie case in favour - pre-deposit ordered: CESTAT
MUMBAI, MAR 01, 2012: AGAINST an Order passed by the CCE, Nagpur , the appellant is before the CESTAT with a Stay application/appeal.

Manufacture of motor vehicles and trading of imported motor vehicles - common input services - Whether rule 6 of the CCR, 2004 applicable - in view of Tribunal decision in Orion Appliances pre-deposit ordered: CESTAT
MUMBAI, FEB 28, 2012: THE applicants are engaged in the manufacture of motor vehicles and parts thereof and also importing motor vehicles in completely built units and selling the same in India. The applicants are availing credit of the service tax paid in respect of the taxable services received by them.

Is advertisement tax collected by Municipal Corporation liable to Service Tax? - Matter referred to Third Member: CESTAT
NEW DELHI, FEB 22, 2012: THE appellants - Jalandhar Municipal Corporation entered into a contract with one M/s Shri Durga Publicity Service and certain other parties for investing into the construction of certain Built, Operate, Own and Transfer (BOOT) projects.

Banking and Other Financial Services – Bank run by Co-operative Society liable to pay tax: CESTAT
NEW DELHI, FEB 21, 2012: THERE are three appeals being decided in this proceeding. The Appellants are a co-operative society and they provide banking services. The issue in dispute is taxability of service rendered by the Appellant under the head for "Banking and Other Financial Services" as defined under section 65(12) of Finance Act, 1994. The three different appeals are filed by three different branches of the Appellant.

Appellant already paid Service Tax of Rs six crores - Pre-deposit of Rs 25 lakhs ordered: Bombay HC
MUMBAI, FEB 17, 2012: A notice to show cause was issued to the Appellants on 24 October 2008 demanding service tax dues in the amount of Rs . 5.85 crores ; interest therein and to explain as to why penalty should not be imposed. The show cause notice as a matter of fact recorded that an amount of Rs. 5.57 crores was paid by the Appellants towards service tax for the period between April 2003 to March 2007. The notice required the Appellants to show cause as to why the amount should not be appropriated towards the liability.

Import of Services - constitutional validity of Section 66A of the Finance ACt, 1994 upheld: Allahabad HC
ALLAHABAD, FEB 16, 2012: IN this case the petitioners have challenged the validity of Section 66A of the Act on its extra territorial operation. It is alleged that the amendment seeks to levy service tax on the taxable event outside India. It is submitted by the petitioner that any act of receiving or rendering of service outside the territory of India is not amenable to the Finance Act, 1994. The impugned provisions/rules, it is submitted, create another taxable event namely from services provided to services received in India, which is against the scheme of legislation. It has been challenged as artificial, as taxable services can never be received in India. Since no service tax can be levied on the services provided outside India by a foreign company irrespective of the fact that the petitioner has taken the subject services, the extra territorial operation of the Act requires to be struck down.

CENVAT Credit - Cell Towers, prefab building, printer, office chair - neither Capital Goods, nor inputs for providing cellular telephone service: CESTAT
MUMBAI, FEB 15, 2012: THE appellant is engaged in the business of providing cellular telephone service taxable under Section 65 of the Finance Act, 1994. For paying service tax on this output service, they can utilize CENVAT credit of the duty paid on capital goods and inputs and of the service tax paid on input services provided such "capital goods", "inputs" and "input services" would fall within the ambit of the respective definitions under Rule 2 of the CENVAT Credit Rules, 2004. Four show-cause notices (SCNs) were issued by the department mainly to deny CENVAT credit to the appellant on certain items which were claimed, by the latter, to have been used for providing their output service during the period from October 2004 to March 2008.

Making available space on website for advertisement is taxable under Sec 65(105)(zzzm) – Plea that such service is to be treated as export of service is prima facie not sustainable – CESTAT orders The Hindu Online to pre-deposit Rs.35 lakhs
CHENNAI, FEB 14, 2012: THE appellants are receiving payments for making available space on their website for advertisement service. The Commissioner has confirmed the demand of service tax under Section 65 (105) (zzzm) of the Finance Act, 1994.

Arranging of celebrities for promotion and publicity is not an advertisement agency service prior to 01.07.2003 – Strong prima facie case – Pre-deposit waived and Stay ordered: CESTAT
MUMBAI, FEB 13, 2012: DURING the period April, 2002 to June 2003, the applicant was engaged in the activity of arranging celebrities namely Sourav Ganguly, Virendra Sehwag, Yuvraj Singh, Harbhajan Singh and Mohd. Zaheer Khan for promotion and publicity of the two-wheelers manufactured by Hero Honda Ltd.

Service tax on construction services: TRU clarifies to reduce litigation
NEW DELHI, FEB 11, 2012: THE levy of service tax on construction services has constantly been generating litigation for virtually all central excise zones in India. Every Commissionerate has been sending DO letters to the Board, seeking clarifications in the light of various business models being followed by the taxpayers. Across the country, divergent business models and practices are being followed in the construction sector. Some of these business models and practices could be region specific.

Board's Circular No. 137/2007 clarifying sec 73(3) incorrect in as much as this provision only prohibits service of SCN under sub-section (1) in r/o payment made by party - There is no bar to issue SCN for imposing a penalty u/s 76: CESTAT
BANGALORE, FEB 10, 2012: THE dispute between the assessee and the department was with regard to assessee's liability to pay service tax under the head ‘commercial training or coaching service' for the period from 27.09.2004 to 08.03.2005. The assessee collected the service tax component from students but neither deposited it with the government nor filed any periodical returns. Pursuant to investigations initiated by the department, the assessee paid the service tax with interest for the said period on 13.08.2005.

Since Facilitation charges and additional handling charges are included in assessable value, they are not liable for Service Tax – Prima facie case in favour – Pre-deposit waived and Stay granted: CESTAT
MUMBAI, FEB 09, 2012: M/s Indian Oil Corporation Ltd. (IOCL) is having an agreement of sale with M/s Zuari Industries Ltd. (ZIL) for sale of Naphtha and Furnace oil on high seas sale basis. In pursuance to the agreement entered into between the parties, M/s IOCL imported the above goods and sold the same on High Seas Sale basis to M/s ZIL. In the agreement of sale there is bifurcation given to arrive at the value of the goods and as per the agreement the applicant has to charge Rs.25 PMT on account of additional handling charges and 2.5% of CIF value on account of facilitation charges. It is the view of the department that these services rendered by the applicant are liable to Service Tax under the category of ‘Business Auxiliary Service'.

Mobile phones in name of Director of Company – Cenvat Credit of Service Tax cannot be denied – Prima facie case – Stay granted: CESTAT
MUMBAI, FEB 07, 2012: THE facts are that the assessee had taken credit of service tax paid on mobile phone and insurance premium paid to insurance companies for vehicles, insurance premium paid towards renewal of Individual Health Guard policy and personal accident policy for their staff and workers. Same was disallowed by the lower authority along with imposition of interest and equal amount of penalty.

Denial of credit on invoices issued by hotels for renting out conference rooms – No denial of fact that appellant availed services of conference rooms for commercial training – Invoice for Rs. 8722 issued in name of director doubtful, pre-deposit ordered: CESTAT
NEW DELHI, FEB 06, 2012: THE appellant was issued a notice by lower authority for recovering irregularly availed input tax credit on the ground that they availed credit on various input services based on documents which do not have all the necessary details as prescribed under Rule 9 of CENVAT Credit Rules, 2004 read with Rule 4A of Service Tax Rules, 1994. The demands were confirmed by the original authority as well as the lower appellate authority. The appellant is aggrieved and filed an appeal before CESTAT with an application for stay of demands and waiver of pre-deposit.

Laying pipeline for transport of gas - whether liable to ST under Commercial Construction Service or does it stand excluded in view of definition of Erection, Commissioning and Installation Service - issue arguable - Stay granted: CESTAT
AHMEDABAD, FEB 03, 2012: A Show Cause Notice demanding Service Tax of Rs. 3.79 lakhs was issued to the applicant asking them as to why the activity of laying pipeline for ONGC for transportation of gas be not considered as falling under the category of 'Commercial Construction service'.

Service Tax payable on accomodation provided to pilgrims at Tirumala Tirupati Devasthanam: AP High Court
HYDERABAD, FEB 02, 2012: A new service described as ‘accommodation service' in this writ petition was introduced with effect from 01.05.2011. Section 65(105)(zzzzw) of the Finance Act, 1994, reads as,“65(105)(zzzzw):. To any person by a hotel, inn, guest house, club or camp-site, by whatever name called, for providing of accommodation for a continuous period of less than three months.”

Construction Service – Challenge to Explanation to Clauses zzq and zzh - Petition dismissed: Bombay HC
MUMBAI, JAN 30, 2012: THE Finance Act 1994 was amended by the Finance Act 2010 to introduce an explanation to Section 65(105)(zzq) and Section 65(105) (zzzh). Besides, a new provision was introduced in the form of clause (zzzzu) in Section 65(105). In these proceedings, there is a challenge to the constitutional validity of those provisions.

Appellant collecting consideration for plant operation and maintenance and discharging tax liability – clients supplying electricity free of cost for said service – such cost will have to be included in value of services – Pre-deposit of Rs 1 Cr ordered: CESTAT
MUMBAI, JAN 30, 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.

Very purpose of issue of s. 37B Circular is to ensure that there is uniformity in classification of excisable goods, in this case ST - if there were divergent views, prima facie, appellants were under bona fide belief that services were not taxable – stay granted: CESTAT
MUMBAI, JAN 27, 2012: SERVICE tax demand of Rs.2,65,91,471/- raised in demand notice dated October, 2004 was confirmed by the Commissioner of Service Tax, Mumbai on the ground that the following services, namely advisory service, merchant banking service, underwriting of government securities/treasury bills; recovery of expenses of insurance claim, recovery of bad debts etc., provided by the appellants during the period from April 2000 to December, 2001 are liable to service tax under the category of ‘Management Consultancy Service'.

Appellant body consists of various working officers of Police Department who are managing affairs of Corporation - since neither corporation nor individuals are professionally qualified engineers, prima facie, not covered by consulting engineers - Pre-deposit waived: CESTAT
NEW DELHI, JAN 25, 2012: THE appellant M P Police Housing Corporation Ltd. is a company incorporated under the Company's Act and its main objective is to formulate and execute housing scheme for the benefit of service employees of Government of Madhya Pradesh in the Police Department. The demand of service tax of Rs. 1.25 Crores stands confirmed against them by the CCE, Bhopal on the ground that they are covered under the category of Consulting Engineers Services, as defined under Section 65 (31) of the Finance Act, 1994.

Since amounts of Passenger Service Fees and Airport Taxes collected by airlines were not for services provided by them, it is prima facie doubtful whether these can be considered as value of service rendered - Pre-deposit waived and stay granted: CESTAT
NEW DELHI, JAN 24, 2012: M/s TURKISH AIRLINES are engaged in the business of operating airlines and providing the services of "transportation of passengers embarking in India for International journey by air" along with other services to its clients. While issuing tickets to the passengers, they were collecting Passenger Service Fees (PSF) on behalf of the International Airport Authority of India (IAAI) and remitting it to IAAI. Similarly, they were also collecting airport taxes. The airport taxes are collected from passengers for utilizing the airport for arrival and departure and this amount is also paid to the International Airport Authority of India.

All refund claims except those mentioned under specific proposition of law laid down by Apex Court in Mafatlal Industries case, have to be and must be filed and adjudicated under provisions of Central Excise or Customs, as case may be: Karnataka HC
BANGALORE, JAN 20, 2012: THE assessee, a private limited company is engaged in providing loans to customers and registered with the department under the category of Banking and other financial services under Finance Act, 1994. They paid service tax on interest collected from customers based on self assessment. On realizing that the interest charged on loans and advances were not liable to payment of service tax, they preferred a refund claim on 01.12.2004 for refund of service tax paid for the period from July 2001 to August, 2004, under section 11B of Central Excise Act, 1944 read with section 83 of Finance Act, 1994. The lower authority after considering the entire material on record passed an order on 25.04.2005 allowing the claim in its entirety.

Review by Commissioner - date of passing order would be date on which order is made public or notified in some form or when it can be said to have left adjudicator's hand - Order passed after two years, not valid: CESTAT
NEW DELHI, JAN 18, 2012: A show cause notice dated 25.3.2004 was, issued to the appellant for - (a) demand of service tax amounting to Rs.5,43,618/- from the Appellant on an amount of Rs.94,38,446.84 received by them from IOCL for providing the services for the period 1.3.2000 to 31.12.2003, along with interest on it at the applicable rate under Section 75 of the Finance Act, 1994; and (b) imposition of penalty on the appellant under Section 75A, 76, 77 and 78 of the Finance Act, 1994.

AP Sales Tax - Hiring of Transit Mixers amounts to transfer of rights to use goods - liable to sales tax: High Court
HYDERABAD, JAN 17, 2012: THE petitioners - M/s. G.S. Lamba & Company, G.S. Lamba & Sons, and G.S.L. Coal Sales Pvt. Ltd. - are dealers on the rolls of the Commercial Tax Officer (CTO). In pursuance of the inspection and investigation by the Vigilance and Enforcement Wing, the CTO assessed tax for 2001-02 and 2002-03 under Section 5-E of the Act in respect of the taxable event, namely, the petitioners hiring their fleet of Transit Mixers to M/s. Grasim Industries Ltd., Secunderabad, a unit of M/s. Birla Ready Mix Concrete. The Appellate Deputy Commissioner agreed with assessees and treated the hiring of Transit Mixers as contract of transport service, and not the transfer of the right to use the goods. The Additional Commissioner (Legal), in exercise of the revisional jurisdiction, levied sales tax under Section 5-E of the Act. The petitioners then went in further appeals before the Tribunal, which were dismissed. Hence, they are before the High Court in tax revision cases.

C & F Agent - Clearing & forwarding services can be considered as being rendered, if both activities are connected and simultaneously done: CESTAT
AHMEDABAD, JAN 16, 2012: THE appellants were engaged in facilitating clearance of export/import cargo at various Ports/ICDs/CWC-CFS and for which they did the work of freight booking of ocean going vessels, co-ordination with shipping lines for terminal handling of containerized cargo, coordinating with CHAs for customs clearance of documents etc, shifting of empty containers from container yards to CWC-CFS, facilitating fumigation required for agro products, employment of labours for stuffing of the cargo into containers etc.

Appellant provides service of issue of PAN and collects charges – levy and collection of Income Tax is a sovereign function and issue of PAN cards is in relation to such function – not taxable under BAS: CESTAT
MUMBAI, JAN 13, 2012: THE appellants are rendering services to various Government departments namely Income Tax department, Central Board of Trustees Employees Provident Fund, India and also the Department of Company Affairs.As regards the Income Tax department, they are undertaking the services of issue of PAN card (Permanent Account Number Card).The department sought to be classify this service under the category of ‘Business Auxiliary Service' and accordingly issued a Service Tax demand of Rs.3.67 Crores on a sum of Rs.45,48,60,957/- received as service charges from various clients.

Services utilized to advise farmers for production of tobacco to be used in manufacture of quality cigarettes - Tax paid on such services eligible as CENVAT Credit: CESTAT
BANGALORE, JAN 12, 2012: THE appellant is engaged in manufacture of cigarettes. In order to procure high quality tobacco for their final products viz., cigarettes, the appellants devised a scheme whereby they select a group of farmers and supply tobacco seeds free of cost and also arrange necessary supervisory and advisory services to the farmers for production of quality tobacco. The cost of services rendered to the farmers was included in the cost of production of cigarettes which were cleared on payment of duty. The service tax paid on such advisory services rendered to the farmers was availed as CENVAT Credit. The lower authorities denied this credit on the ground that (a) the services were received by the farmers and not by the appellant and (b) the services had no nexus with the manufacture of cigarettes and the same related only to tobacco cultivation. The appellant is before CESTAT for redressal.

Penalty - Sections 76, 78 - No penalty proposal in Show Cause Notice - Receipt of Corrigendum disputed - Sec 80 not considered - Matter remanded: HC
NEW DELHI, JAN 11, 2012: THE respondent assessee was/is an authorized dealer of passenger cars. The cars were sold to customer from their show room. Some of the cars were sold under finance schemes offered by various banks/financial institutions. The respondent- assessee received payments/commission from banks/financial institutions. Initially question was raised whether the respondent assessee was liable to pay service tax on the payout/commission received from the said banks/financial institutions for providing the service under the Business Auxiliary Service. It is now an admitted position that the said tax is payable.

Service Tax demand on Kings XI Punjab – CESTAT orders pre-deposit of Rs 28 Lakhs
NEW DELHI, JAN 10, 2012: THE appellant is one of the franchisees of the "BCCI – IPL – T20 cricket tournament” and the following demands were confirmed by the lower authorities.

LC is opened only on instructions of customers - merely because there is no agreement entered into by exporter with buyer, benefit of refund under Notfn 41/2007-ST cannot be denied: CESTAT
MUMBAI, JAN 05, 2012: THE facts of the case are that appellant filed a refund claim for the input services used in export of goods by claiming the benefit of Notification 41/07-ST as amended. The lower adjudicating authority rejected the refund claim for the service tax paid on technical testing and analysis service, on the ground that the condition of the Notification that there should be a “written agreement” between the exporter and the buyer requiring testing and analysis for the said goods was not fulfilled.

Kerala High Court upholds levy of service tax on sale of lottery tickets from 16/05/2008 to 30/06/2010
KERALA, JAN 02, 2012: THE issue has implication only for the period from 16.5.2008 to 30.6.2010. With effect from 1.7.2010, a separate entry, zzzzn has been inserted in the Finance Act, 1994 to bring the promotion, marketing etc of lottery etc into tax net. Prior to this, an attempt was made to levy service tax on sale of lottery tickets by inserting an explanation in Section 65(19)(ii) of the Finance Act, 1994, in the definition of Business Auxiliary Service.

New scheme of Service Tax refund to exporters raises hopes: IST
NEW DELHI, January 2, 2012: BETTER later than never is what springs to mind on perusal of Notification No.52/2011-ST issued on 30.12.2011 to fulfill a promise made by Finance Minister Pranab Mukherjee in his speech of Budget 2011 to facilitate exporters by automatic grant of refund of Service Tax duties in like manner of Customs duty Drawback. The initiative is definitely welcome but exporters are keeping their fingers crossed for the time being and waiting to confirm that their travails are indeed behind them or whether this is one more scheme of C.B.E.C. that will falter at the implementation stage. The new scheme comes into effect from tomorrow i.e. 3rd January, 2012.

When Service Tax and Interest Paid, No penalty; By evading payment of service tax, appellant stands to lose rather than getting any undue benefit: CESTAT
AHMEDABAD, DEC 30, 2011: DURING the course of audit of records of the appellants, it was noticed that appellant had availed services of Machine Maintenance & Repair from M/s. Davis Standard GMBH, Germany and paid an amount of Rs.12,49,140 /- to the said service provider in foreign currency. The services were received by the appellants in the year 2007 and payment was made in August 2008. However, the appellant did not pay service tax which they were to pay as a recipient of services since the service provider did not have their office in India. When this was pointed out, appellant paid the service tax amount of Rs . 1,54,394/- on 15.12.2008. However, they did not pay the interest amount which was required to be paid.

CENVAT Credit on input services used for construction of mall - Pre-deposit waived and recovery stayed: CESTAT
AHMEDABAD, DEC 27, 2011: THIS stay petition is filed for the waiver of pre-deposit of an amount of Rs.1,83,22,518 /- confirmed by the adjudicating authority along with interest and equivalent amount of penalty, and upheld by the first appellate authority.

Appellants' claim before original authority that as per Rule 5 of CCRs, credit was eligible to them irrespective of whether services exported were taxable or not, not dealt with by authority - Matter remanded: CESTAT
BANGALORE, DEC 26, 2011: THE appellant, a service provider registered under STPI Scheme as 100% EOU are engaged in providing services falling under the category of BAS and ITSS. The services rendered by them were exported in its entirety except for a small portion of services which were rendered within India. The appellants have taken CENVAT Credit of service tax paid on various input services and as they were mostly exporting the services they could not utilize the said credits and therefore, in terms of Rule 5 of CENVAT Credit Rules, 2004, they claimed refunds for the period from April 2006 to March 2007, April 2007 to September 2007. Both the claims were rejected by the original authority and this rejection was upheld by the lower appellate authority.

Appellant registered under category of Insurance Auxiliary Services and paying Tax on behalf of insurance agents as deemed service provider - Cenvat Credit taken of such payments and utilized - Stay granted: CESTAT
MUMBAI, DEC 22, 2011: THE Head Office of the applicants distributed the service tax paid on the input services to the Borivali plant of the applicants. The case of the rev

Head Office as Input Service Distributor distributing service tax paid on Input services - there is nothing in law which requires that input Services ought to have been used in factory where credit is taken - Stay granted: CESTAT
MUMBAI, DEC 22, 2011: THE Head Office of the applicants distributed the service tax paid on the input services to the Borivali plant of the applicants. The case of the revenue is that the input services are not in respect of the services used in or in relation to the manufacture of the goods at the Borivali plant.

Whether activities in nature of loading, unloading, packing and unpacking provided as intermediary to GTA service provider taxable as GTA service - Matter remanded: CESTAT
NEW DELHI, DEC 20, 2011: THE issue before CESTAT was whether activities in the nature of loading, unloading, packing, unpacking, trans-shipping and warehousing in transit in respect of GTA services provided to transport the goods from origin to destination are taxable as GTA service.

Functions performed by NHAI or its contractor cannot be considered as sovereign functions nor fees collected acquires nature of tax or duty so as to be outside scope of tax - Service of Toll collection on behalf of NHAI would come under BAS - Pre-deposit ordered: CESTAT
MUMBAI, DEC 19, 2011: THE appellant M/s Ideal Road Builders Pvt. Ltd. (‘IRBPL' in short) is engaged in the business of toll collection on behalf of M/s National Highway Authority of India (NHAI). They entered into a contract with NHAI wherein they collected the toll for the specified national highway and remitted the same to M/s NHAI and in respect of the services rendered they received a fixed remuneration from M/s NHAI. This was for the period from 01.07.2003 to 31.07.2006. For the period from 01.01.2006 to 31.07.2007, they also entered into a toll rights contract under which they paid a fixed monthly sum to M/s NHAI on account of toll and collected the toll from the users of the roads and retained the entire amount with them. The department was of the view that the services rendered by M/s IRBPL to M/s NHAI would come under the category of ‘Business Auxiliary Services'...

Refund of service tax to exporters: CBEC to notify schedule of rates for electronic refund
NEW DELHI, DEC 16, 2011: THE CBEC has come out with a simplified service tax refund scheme for exporters and in this direction issued Circular No.149 and would soon be notifying a 'schedule of rates' which exporters will have to opt for. As per the new scheme, an exporter will have two options - either to go for electronic refund through ICES System or to claim the same through the local commissionerate.

If service tax paid on services obtained from foreign commission agents is admissible as credit, then service tax paid on commission agent's services within country would also be admissible as credit: CESTAT
AHMEDABAD, DEC 16, 2011: THE appellant cleared finished goods on payment of excise duty on transaction value. Revenue was of the view that the appellant was not eligible to avail credit of service tax paid on commission agent's service, as the said service had no nexus with manufacturing activity and clearance of final products from place of removal. Service tax credit amounting to Rs. 4.14 lakhs was demanded with interest and penalty imposed.

Appellant collecting ST from customers but not paying to Govt - when case detected, tax paid - since there is no communication in 'writing' to department about payment of tax, levy of penalty proper: CESTAT
MUMBAI, DEC 15, 2011: THE appellant are providers of taxable service falling under category of maintenance and repair. They collected Service Tax from their customers for the period October 2006 to March 2007 but did not remit the same to the exchequer nor did they file the service tax returns. When the case was detected by the department the appellant paid the service tax along with interest thereon.

Authorized service station - When sales tax is paid on gross value of motor vehicles including accessories, no liability to pay service tax: CESTAT
NEW DELHI, DEC 14, 2011: THE appellant, an authorized dealer of Maruti Udyog Ltd is also an authorized service station. In the course of their business, they also purchase and sell various accessories of motor vehicles sold by them. The bills for these accessories are raised showing gross total value received from their customers and they discharge sales tax on such gross value. Revenue contended that since they are fixing accessories in the motor vehicles, such fixing has to be treated as providing services under the category of ‘authorized service station'. Taking 2% of the total value charged by them, Revenue confirmed demands against the appellant resulting in this appeal before CESTAT.

Notification No.21/03-ST issued independently granting exemption from tax on taxable service for which consideration was received in convertible foreign exchange and had nothing to do with rescission of Notification 6/99-ST: CESTAT
BANGALORE, DEC 13, 2011: THE issue involved in this appeal before CESTAT was with regard to levy of service tax on advertising agency rendered by appellant to a foreign company wherein the consideration was received in convertible foreign exchange.The demand was raised on the services rendered during the interregnum between Notifications 2/03-ST dated 01.03.2003 and 21/03-ST dated 20.11.2003 and this was based on an audit report which alleged that the appellant collected under certain bills/invoices an amount of Rs.82.89 lakhs in convertible foreign exchange during the said period.Lower authorities confirmed the demand resulting in this appeal before CESTAT.

SCN is foundation of adjudication which may give rise to civil or evil consequences under law and adjudication order should not travel beyond SCN - Prima facie, case for full waiver of pre-deposit during pendency of appeal: CESTAT
NEW DELHI, DEC 11, 2011: THIS is the second round of litigation before the CESTAT. On remand the Commissioner held that the appellants provided ‘Franchise service', if the activity does not fall under the category of ‘Management Consultants' service' as held by him in the first round. Aggrieved by this order, the appellant approached the CESTAT with an application for stay of the impugned order.

Banking - Prepayment or reset charges for loans - liable to tax; Limitation - no different treatment for a Government Company: CESTAT
AHMEDABAD, DEC 09, 2011: THE appellant is registered with the Department under the category of 'Banking and other financial services' and paying Service Tax on the services provided. The assessee is involved in the business of providing finance for housing and urban development. During the course of audit by the Department, it was noticed that the appellant was collecting reset charges from their customers but was not paying Service Tax on the same.

Tax with interest paid before SCN - non payment of tax when liability is known - `Penalty @ 25 per cent payable - No penalty under both Sections 76 and 78: Karnataka HC
BANGALORE, DEC 08, 2011: THE assessee is a cable operator. He got himself registered as a service provider under the Finance Act. Thereafter he was remitting the service tax payable for the amounts he received from his customers. In pursuance of an enquiry by the department, he gave information regarding the number of subscribers, the amount charged, amount collected and the period for which it is collected and also stated that he would pay the differential tax after quantification by the department as he has not maintained any accounts. A communication was sent pointing out that he is liable to pay Rs. 4,81,370/- of service tax, Rs. 6,497/- on education Cess and Rs. 51,963/- interest, in all a sum of Rs. 539,830/-. On receipt of the said communication, he promptly paid the said amount on 23.11.2005.

Attachment and sale of property for recovery of dues - Pendency of appeal before CESTAT or High Court no bar: High Court
HYDERABAD, DEC 07, 2011: THIS case has gone through CESTAT twice and High Court twice and the matter is yet to be admitted by the CESTAT!

No Registration required if no tax liability; rebate - filing of declaration though procedural, has to be complied with: CESTAT
NEW DELHI, DEC 05, 2011: THE appellant provide Business Auxiliary Services. According to them, they have applied service tax registration, which has since been granted to them by the jurisdictional Superintendent of Central Excise in March, 2007. They provide I.T. enabled services like technical support services, back office services, customer care services, etc. under the category of Business Auxiliary Services to their clients abroad. Since the services had been provided to their clients abroad, no service tax was paid in accordance with the provisions of Rule 4 of the Export of Service Rules, 2005.

Construction of Complex service - Nothing on record to suggest that appellant was put to notice by lower authority for additional levy of tax - Order of appellate authority cryptic and unreasoned, liable to be set aside: CESTAT
NEW DELHI, DEC 04, 2011: THE appellant was engaged in the activity of construction of residential complex. The adjudicating authority demanded service tax of Rs. 29.12 lakhs (which was discharged by the appellant) and invoking section 80 of Finance Act, 1994 exempted the appellants from penalty under sections 76, 77 and 78 of the said Act. The lower appellate authority, on appeal by Revenue, held that the appellant was liable to pay additional tax on construction of quarters and also levied penalty of Rs. 1000/- under section 77 as well as penalty of Rs. 31.64 lakhs under section 78 while waiving penalty under section 76 of the Act. Aggrieved by this, the appellant is before CESTAT.

Purpose of providing input service tax distribution is in context of 'common services' availed by various units of single corporate - It is not mechanism for transfer of credit from one unit to another – Pre-deposit ordered: CESTAT
MUMBAI, DEC 02, 2011: THE appellant M/s Mahindra & Mahindra Ltd., Kanhe, Pune are manufacturers of Motor Vehicle Parts. They have another manufacturing unit at Wagholi . Their Head Office is registered as an Input Service Distributor. It was noticed that their Head Office had distributed input Service Tax amounting to Rs.1,21,497/- to the Kanhe unit in respect of services rendered to their unit at Wagholi.

Seminar fees, exhibition fees & octroi service - Whether input service - Adjudicating authority merely taking a 'look' at services and deciding eligibility without giving any findings is unfortunate – matter remanded: CESTAT
MUMBAI, DEC 01, 2011: THE issue relates to admissibility of CENVAT credit taken on various services such as seminar fees, exhibition fees, patent application work, international conference fees, octroi service and valuation of property adjacent to the existing factory for setting up another manufacturing unit etc. and the amount of service tax taken is Rs. 47,742/-.

Penalty - Assessee has to be informed about the benefit of paying 25 percent penalty: High Court
CHANDIGARH, NOV 30, 2011: AS per the facts on record, the assessee was working as cable operator as defined in Section 65(21) of the Finance Act, 1994 without any registration under Section 69 of the Act. He was liable to file quarterly service tax returns under Section 68 of the Act read with Rule 6 of the Service Tax Rules, 1994. A search was conducted at the business as well as residential premises of assessee, but before a show cause notice could be served to the assessee as to why he has not paid duty under the Act, the assessee deposited the entire amount of duty and interest thereon. After considering the reply filed to the show cause notice, the Adjudicating Authority confirmed the demand of service tax of Rs.11,46,537/- along with interest. In addition to the penalties under Sections 75(A), 76, 77 & 78 of the Act, the Adjudicating Authority also imposed a penalty of the equivalent amount of the duty payable under Section 78 of the Act.

Appellant providing Outdoor catering services and receiving payments but not discharging ST liability - since liability accepted, pre-deposit ordered and matter remanded - cum-tax benefits and small scale exemption to be considered by adjudicating authority: CESTAT
MUMBAI, NOV 29, 2011: M/s. Swami Samarth Catering Service , rendered outdoor catering services to M/s. Kinetic Engineering Limited and received payments amounting to Rs. 28,17,482/- during the year 2006-07, 2007-08 and 2008-09. However, they did not get themselves registered with the department nor did they discharge service tax liability.

Tax payable on services received from abroad - Tax can be paid from CENVAT Credit : High Court
BANGALORE, NOV 28, 2011: THE
assessee is a Company engaged in the manufacture and sale of readymade garments bearing the brand names like 'Wrangler' and ‘Lee', which belong to foreign Companies. The foreign Companies provided Intellectual Property Service ( IPS ) with effect from 10.9.2001 to the assessee and the assessee Company being the service provider was made liable to pay service tax. The Service Tax liability was discharged by the assessee using Cenvat credit availed on 'Intellectual Property Service', which was objected to by the Department. The assessee filed a revised return and used credit relating to other input services such as advertisement, freight, manpower recruitment, courier services, maintenance, repair and construction services for discharging Service Tax under the category of 'Intellectual Property Service' in the capacity of the service receiver.

Restriction of credit utilization to 20% in terms of Rule 6(3)(c) not applicable to credit availed on capital goods: CESTAT
NEW DELHI, NOV 27, 2011: THE appellant, BSNL Ltd, filed an appeal against the order of adjudicating authority wherein the lower authority confirmed service tax demand totally amounting to Rs. 4.07 crores on grounds like irregular availment of credit and non-payment of service tax, along with interest and levied equivalent penalties for contravention of CENVAT Credit Rules and Service Tax Rules.

In addition to primary business activity of banking service, respondent bank collecting electricity bill payments from various customers and receiving commission - not liable to Service Tax under BAS: CESTAT
MUMBAI, NOV 25, 2011: THE respondent "The Akola District Central Co-operative Bank" is engaged in the business of collecting electricity bills from various customers of Maharashtra State Electricity Board (MSEB) in addition to its primary business activity of banking service, being a cooperative bank. The MSEB has facilitated the customers by allowing them to deposit the electricity bills into the account of MSEB being maintained by the respondent bank. For rendering such service, the co-operative bank received an amount of Rs. 11,93,799/- as commission towards collection of electricity charges for the period 01/07/2003 to 30/08/2004.

Works Contract - Certain Works for Government - Stay granted on basis of Board Circular and pervious decisions: CESTAT
BANGALORE, NOV 24, 2011: THESE appellants seek waiver of pre-deposit and stay of recovery in respect of various amounts of service tax and penalties determined by the Commissioner in adjudication of various show-cause notices for the period June, 2007 to September, 2008. The impugned demands of service tax are under the head 'works contract service', which is taxable w .e. f. 01/06/2007.

VAT / Service Tax - SIM cards, recharge coupon vouchers, mobile telephone rentals on post paid connections, value added services such as ring tones, music downloads and wall papers - not taxable under VAT: AP High Court
HYDERABAD, NOV 23, 2011: DECLARATION of the law by the Supreme Court, in Bharat Sanchar Nigam Ltd v. Union of India - 2006-IST-16-SC-CT-LB, notwithstanding, the High Court was to adjudicate on the jurisdiction of the revisional/appellate/assessing authorities to levy tax under Section 4(1) and (8) of the A.P. VAT Act, 2005 on SIM cards - pre-paid and post-paid; recharge coupons; value added services; telephone instruments, mobile handsets, modems and caller ID instruments; mobile telephone rentals; sharing of infrastructure; non-refundable deposits; refundable deposits etc.

If an official of CBEC was not aware of correct legal position in matter, then members of public cannot be faulted for having acted in good faith by relying on clarification by said official: CESTAT
MUMBAI, NOV 18, 2011: PHOTOGRAPHY service is in focus again after the Larger Bench decision holding that the value of service would include the cost of materials and consumables used in providing the service. In this appeal, the issue of limitation has taken the centre stage as on merits, the issue is covered against the assessee in view of the Larger Bench decision in case of Agrawal Colour Photo Industries .

Grant of temporary status for daily wage labourers in Excise and Customs department - CAT did not check whether it was necessary for labourers to satisfy conditions required for granting temporary status - Matter remanded to CAT: Karnatka aHC
BANGALORE, NOV 17, 2011: THE Writ Petitions were filed before the High Court challenging the CAT orders where a direction was issued to the petitioners to consider the case of respondents (casual labourers/daily waged labourers) in terms of its earlier orders subject to the outcome of a Writ Petition pending before the High Court. Before the CAT, the respondents sought the following reliefs:

Microsoft case - Service provided to Principal situated in Singapore to market products in India - Whether Export of service or service provided in India - Matter referred to Third Member: CESTAT
NEW DELHI, NOV 16, 2011: BEING aggrieved by the order of adjudication dated 23/09/2008, the appellant is in Appeal before the Tribunal raising the principal grievance that the service provided by the Appellant in terms of Agreement dated 01.07.2005 to the foreign principal is not 'Business Auxiliary Service' and not taxable u/s 65(105) (zzb) read with section 65 (19) of Finance Act, 1994 since such services were exported under the provisions of Export of Service Rules 2005 and immune from service tax. Further grievance was that the activity of repair and maintenance of software was not taxable prior to 07.10.2005. So also the Adjudication was time barred and the Appellant was entitled to Cum-tax benefit and Cenvat Credit. It was also agitated that the appellant was not liable to penalty. With all these grievances, prayer of the Appellant was to set aside the order of adjudication while Revenue opposes the same.

In respect of services rendered by C&F Agents, only commission or remuneration paid to C&F Agent is taxable before introduction of Service Tax Rules, 2006 – reimbursement of handling and godown rent not includible in taxable value – Stay granted: CESTAT
MUMBAI, NOV 16, 2011: THE appellant M/s Y.N. Warehousing Company, Akola is registered as a service tax assessee under the category of 'Clearing & Forwarding Agent' and discharged their liability for the consideration received for the said services. However, the appellant was also getting reimbursement from service recipient of handling charges, establishment charges, computer stationery charges and go-down rent but the appellant was not paying any Service Tax on the said charges. The period involved is October, 2002 to March, 2006.

WTC- When copyright of software developed under contract vests with customer from day one, such contract does not fall within mischief of works contract - Not covered under concept of deemed sale to attract levy of sales tax: Karnataka HC
BANGALORE, NOV 14, 2011: THE appellant, a registered dealer under the Karnataka Value Added Tax Act, 2003 (‘KVAT Act') and Central Sales Tax Act, 1956 was engaged in the business of software development and providing software services. The appellant was also registered under section 69 of the Finance Act, 1994 for the purpose of payment of service tax and has been paying service tax. The appellant's books were audited by the CTO and it was observed that the appellant had executed works contracts.

Activity of supplying labour for harvesting & transportation of sugarcane from farmer's fields to sugar factory - No prima facie case for full waiver of pre-deposit - Pre-deposit of Rs 7.5 lakhs ordered: CESTAT
MUMBAI, NOV 11, 2011: THE appellant, a charitable trust formed under Bombay Public Trust Act, 1950, was solely created for the welfare and social cause of sugarcane growers/farmers. They were engaged in the activity of 'harvesting & transportation of sugar cane' from farmer's fields to sugar factory by engaging sub-contractors. The appellants were also engaged in the activity of running schools for farmer's children, hospitals etc. The department issued show cause notice to the appellants demanding service tax under the head 'manpower recruitment and supply agency's service'.

Commercial Training or Coaching service – AP High Court orders pre-deposit of Rs 80 crores, holds order of CESTAT granting full waiver erroneous
HYDERABAD, NOV 09, 2011: NOT all the Stay orders passed by the Tribunal are appealed against by the revenue as basically they are interlocutory orders. But in this case, the Stay order passed by the Tribunal was appealed against by the revenue, not once, but twice successfully before the High Court of Andhra Pradesh.

Activity of providing food, beverages and amenities to passengers in airport lounges on behalf of airlines not taxable under Airport service: CESTAT
NEW DELHI, NOV 08, 2011: THE assessees are engaged in providing food, beverages, amenities like TV, newspapers, magazines and internet facilities etc to passengers in lounges operated at IGI Airport , New Delhi . Revenue felt that these services would be covered under the category of Airport Services and issued show cause notices to both the assessees.

Amalgamation - Date of amalgamation is date from which High Court allowed amalgamation, not date of filing application with ROC - Service to Self - Not taxable: CESTAT
NEW DELHI, NOV 04, 2011: AS per facts on record, M/s ITC Hotels Ltd. and M/s Ansal Hotels Ltd. were subsiding companies of ITC Ltd. while holding company was also running a few hotels of its own M/s ITC Hotels Ltd. were paying service tax under the category of 'management consultant services' being provided by them to M/s ITC Ltd. and M/s Ansal Hotels Ltd. During the period April, 2004 to September, 2004, Amalgamation proceedings in respect of the three were going on before the Delhi High Court and Kolkata High Court and vide their respective orders, the High Courts allowed the amalgamation of the two companies with the parent company, ITC Ltd. with effect from 1.4.2004 i.e. the appointed date as per Amalgamation Scheme duly approved by the High Courts.

Money Transfer from abroad - whether Export or Service rendered in India - Matter referred to Third Member: CESTAT
NEW DELHI, NOV 03, 2011: IN this case, 10 COD applications, 6 stay applications and 42 appeals to be decided. Out of these 42 Appeals 15 are filed by assesses 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.

Agreement with media house for providing services of media bookings, issue release instructions on their behalf, supervise production for sponsored telecasts taxable under BAS - Pre-deposit of Rs 85 lakhs ordered: CESTAT
MUMBAI, NOV 02, 2011: THE appellants were engaged in providing advertisement services to clients on payment of certain amounts. In terms of the agreement, they claimed certain amounts paid to the media as deductions from gross amount. Investigation by authorities revealed that they did not pay service tax on amounts which were written back as rate difference in media costs and the discounts received from the media for volume of work, which resulted in demand of service tax on the same.

Bhootpurva Sainik Society is not a 'Commercial Concern' - Fine distinction drawn by Tribunal in case of Punjab Ex-Servicemen corpn would not negate effect of precedent decision in case of BCCI: CESTAT
NEW DELHI, OCT 28, 2011: THE issue involved in the bunch of appeals filed before the Tribunal is whether a Society of Ex-Servicemen gets excluded from the purview of service tax as it is not a “Commercial Concern” within the meaning of Section 65(94) of the Finance Act, 1994. The dispute relates to demand of service tax under “Security Agency Service” for the period prior to 18.4.2006.

Service recipient made liable to pay service tax under category of C&F agency services and Goods Transport operator - as rule 2(1)(d) of Service Tax Rules, 1994 has been held as ultra vires, demands are not sustainable: CESTAT
MUMBAI, OCT 27, 2011: A demand of service tax was raised against the appellant under the category of Goods Transport Operator for the period 16.11.1997 to 30.05.1998 and another demand for payment of service tax for the period from 16.07.97 to 31.08.99 under the category of Clearing and Forwarding Agency Services.

Distributor not C&F Agent - CESTAT By Majority
AHMEDABAD, OCT 25, 2011: THERE is a difference of opinion between the Members of the Division Bench and the matter is referred to the Third Member.

Raw water reservoir' and 'ash dyke' cannot be equated with a dam - not exempted from levy of service tax - Pre-deposit of Rs 75 lakhs ordered: CESTAT
NEW DELHI , OCT 24, 2011: THE assessee, M/s National Project Construction Corporation Ltd., was issued a show cause notice demanding service tax for providing commercial or industrial construction service. This was adjudicated by the lower authority, confirming an amount of Rs. 4.04 crores towards service tax with interest and imposed a mandatory penalty resulting in this appeal before CESTAT.

Security service - Security Guards Board, is statutory Authority - Whether service itself is taxable, is a triable question - Pre-deposit order of Tribunal set aside: Bombay HC
MUMBAI, OCT 21, 2011: THE appeal arises out of an order passed by the CESTAT on 6 May 2011 on an application for waiver of pre-deposit and for stay of recovery in respect of a demand for service tax in the amount of Rs . 12,90,54,553/. The Tribunal has directed the Appellant to deposit an amount representing 50% of Rs . 9,76,97,740/- under Section 35F of the Central Excise Act read with Section 83 of the Finance Act, 1994.

Leviability of ST on outbound tours - When organizing & scheduling are done in India, it would mean that service is partly performed in India, covered by Board Circular No 117 - Prima facie case for waiver of pre-deposit: CESTAT
BANGALORE/NEW DELHI, OCT 20, 2011: THE appellant, M/s Cox & Kings (India) Ltd, were engaged in providing services of booking of air tickets, operating tours and other travel related services to various customers. Though the appellant was registered with the tax authorities under the category of ‘tour operator service', ‘air travel agent service' and ‘travel agents service', there was a dispute regarding levy of service tax on outbound tours on the ground that they are taxable under ‘tour operator service' since the ‘tour operator' as well as the ‘customers/recipients' are located within India. The department issued two show cause notices proposing to demand service tax for the period from 10.09.2004 to 31.03.2008 and from 01.04.2008 to 31.03.2009 culminating in a demand of Rs. 4.11 crores with interest and confirmation of penalties under sections 76, 77 & 78 of the Finance Act, 1994

Refund of service tax on services provided to SEZ – Notfn. 9/2009-ST – Appeal to be heard by Division Bench as SMB is not competent to hear the matter: CESTAT
MUMBAI, OCT 12, 2011: THE appeals filed before CESTAT by Tata Consultancy Services pertain to exemption by way of refund of service tax paid on services provided to SEZ in terms of notification no. 9/09-ST dated 03.03.2009.

Coaching services - Abacus Training to students is recreational in nature and hence is exempt - Imparting training to Teachers who could either get employment in Franchisee or open own training centre is Vocational Training and exempt: CESTAT
CHENNAI , OCT 10, 2011 : THE appellant is a Company engaged in imparting training to children in the age group of 6-13 years called “Mental Arithmetic”. The course has a 8 level structure and each level is of 3 months duration with 4 classes per month. Classes are conducted once a week for 2 hours, generally during the weekend.

Business Support Services - Freight and Terminal Sharing from Railways; providing of vacant land with facilities to get water connection and electricity connection; - Not BSS - CESTAT
AHMEDABAD, OCT 07, 2011: BOTH the appeals, one filed by the assessee and other filed by Revenue are being disposed by a common order, as they are directed towards the same impugned order passed by the Commissioner of Central Excise, Rajkot vide which he has partly confirmed the service tax against the assesse alongwith confirmation of interest and imposition of penalty and has partly dropped the demand.

When Service Tax with interest is paid under Sec 73(3), no notice to be issued and if issued, person to be punished is officer, not assessee: Karnataka HC 
BANGALORE, OCT 04, 2011: THIS is a Departmental appeal against the Tribunal's order setting aside penalty under Section 76 of the Finance Act, 1994.The assessee has paid both the service tax and interest for delayed payments before issue of show cause notice under the Act. Sub-Sec.(3) of Section 73 of the Finance Act, 1994 categorically states, after the payment of service tax and interest is made and the said information is furnished to the authorities, then the authorities shall not serve any notice under Sub-Sec.(1) in respect of the amount so paid. Therefore, authorities have no authority to initiate proceedings for recovery of penalty under Section 76 of the Act.

When pandal/shamiana is erected marriages are to be treated as social and not religious events - the statute itself postulates that marriage is to be regarded as a social function and full effect has to be given to the same - Levy of Service Tax on "pandal and shamiana" for marriages upheld: Delhi High Court 
NEW DELHI, OCT 3, 2011: DISMISSING the petition of the All India Tent Dealers Welfare Organization in a case involving levy of Service Tax on "pandals and shamianas" erected for Hindu marriages the Delhi High Court may have inadvertently opened a pandora box on the sanctity of the institution of Hindu marriages even though it took pain to stress that their decision was as per the statute.

Yoga and Meditation Services - Applicants wrote to department in October, 2002 detailing meditation activities and sought clarification - Revenue replied no ST payable, but later clarified that it is taxable - Demand for earlier period - limitation - stay granted: CESTAT 
MUMBAI, SEPT 30 2011: THE applicants M/s Neo Sanyas Foundation and M/s Osha International Foundation are before the CESTAT with stay applications against the Service Tax demands of Rs.68.78 Lakhs and Rs.35.89 lakhs respectively confirmed by the CCE, Pune-III. The Service Tax demand has been raised under the category of "Health and Fitness Services"...

Rejection of refund claim on grounds not alleged in show-cause notice is not legal – unjust enrichment not applicable to exports – Revenue appeal dismissed: CESTAT
MUMBAI, SEPT 29 2011: THE respondent assessee is engaged in providing Business Auxiliary Service and paying service tax thereon. They claimed refund of service tax amounting to Rs.6,52,080/-paid by them for the period from 1.12.2007 to 31.8.2008 on the ground that the services rendered by them amounts to export of services in terms of Rule 3(2) of the Export of Service Rules, 2005.

Scientific or Technical Consultancy - Royalties paid to foreign Cos as consideration for technical information - Tax liability cannot be determined by two persons by contract - It is determinable exclusively under taxing statute, which, in instant case, is Finance Act, 1994 - Stay ordered: CESTAT
MUMBAI , SEPT 26, 2011: THE appellant had entered into “technical assistance agreements” with certain foreign companies for the purpose of acquiring technical information and obtaining technical assistance for the purpose of manufacture, in India, of licensed products.

Renting of Immovable Property Service - Sections 65 (105)(zzzz) of Finance Act, 1994 as amended by Finance Act, 2010 intra vires Constitution - Decision of Division Bench rendered in First Home Solution case does not lay down correct law, overruled - Delhi HC Larger Bench
NEW DELHI, SEPT 24, 2011: THE The Writ Petitions filed under Article 226 of the Constitution of India challenged the Constitutional validity and retrospective applicability of section 65(105)(zzzz) of the Finance Act, 1994 and section 66 of the said Act as amended by the Finance Act, 2010. When the matter was posted before a Division Bench, the Bench thought it appropriate that the issue should be dwelt upon by a Larger Bench and thus the matter came up for deliberation and disposal by a Larger Bench (Full Bench) of the High Court headed by the Chief Justice.

Whether services like chipping, cleaning and painting done on marine vessels within port premises are chargeable to Service Tax under head 'Port Services' for period prior to 01.07.2003 - Matter remanded: CESTAT
MUMBAI, SEPT 22, 2011: A Service Tax demand of more than Rs.2 Crores for the period from 16.7.01 to 30.06.02 under the head "Port Services"was confirmed against the appellant in respect of the charges collected for the activities like chipping, cleaning, painting etc done on marine vessels within port premises.

Rent-a-Cab service - Service Tax can be demanded from proprietary firm that was floated by dissolving partnership firm - Appeal dismissed: CESTAT
MUMBAI, SEPT 20, 2011: THE brief facts of the case are that during the course of Audit of M/s Sahara India Commercial Corporation Ltd. (M/s SICCL) it was found by the department that M/s Fast Track Travels had provided Rent-a-cab Service to M/s SICCL and collected service tax through the invoices. The invoices did not indicate service tax registration number of service provider. It is alleged by the department that M/s Fast Track Travels had suppressed the facts of taxable service provided by them and its value from the department with intent to evade service tax.

Process of certifying products of clients conforming to safety norms classifiable as Technical Certification service – Since service is partly performed in India and partly outside, service to be regarded as export: CESTAT
BANGALORE, SEPT 19, 2011: A USA based Certification company is engaged in the process of certifying its client's products conformity to safety standards. The safety mark provided by the US company is similar to BIS certification provided by Bureau of Indian Standards. When clients of the US company present their products to the US company, it conducts a study of those products and the technical data thereafter is sent to the appellant, an Indian subsidiary of the US company.......The department demanded service tax from the appellant for the services undertaken and also proposed levy of penalties under sections 75, 76, 77 and 78 of the Finance Act, 1994 by classifying the activities undertaken by the appellant as ‘technical inspection and certification service'.

Debit notes issued by commission agents indicating Service Tax payable are also Cenvatable documents – Pre-deposit waived and stay granted: CESTAT
MUMBAI, SEPT 17, 2011: THE appellants are manufacturers of Rigid PVC Films/PVC sheets. They sell these products to their various customers by engaging a commission agent. The commission agent had issued debit notes to the appellant showing the invoice no., the name of the customer to whom goods have been sold through them and also showing the amount of commission as well as service tax payable on such commission. Based on these debit notes, the appellants have taken CENVAT credit.

Photography - Value includes cost of goods and material used and consumed in course of rendering such service: CESTAT Larger Bench
NEW DELHI, SEPT 16, 2011: THE issues considered by the Larger Bench on a reference from the Division Bench in the case of Agrawal Colour Advance Photo System vs. CCE , Bhopal - 2010-IST-637-CESTAT-DEL are :

Respondent providing photography service and that cannot be termed as services of 'Consulting Engineering' - moreover, service was provided at Pune, therefore, it cannot be said that as client is based in Sangli, ACCE, Sangli has jurisdiction: CESTAT
MUMBAI, SEPT 15, 2011: IT is alleged against the respondent that they were providing Services of Consultancy Engineering and have not taken registration with the department; that they have contravened the provisions of sections 68, 69 and 70 of the Finance Act, 1994 by not filing service tax returns for the period July, 1997 to March, 2002.

Notfn. 41/2007-ST - granting refund to exporters on taxable services that he received and used for export does not require verification of registration certificate of supplier of service – Appeals allowed with consequential relief: CESTAT
MUMBAI, SEPT 14, 2011: THE appellants have exported excisable goods falling under chapters 51 & 55 of the CETA, 1985 to various countries. In pursuance of Notification no. 41/2007-ST dated 6.10.2007 they filed claims for refund of service tax paid by them on various specified services used in relation to goods exported out of India. However, t he lower authority rejected the refund claim on the following grounds:

As soon as registration certificate is surrendered, duty is cast on department to verify whether appellant has rightly gone out of tax net - such exercise since not having been conducted within one year, extended period is not invocable: CESTAT
MUMBAI, SEPT 13, 2011: THE brief facts of the case are that the appellant are providing banking and other financial services and were registered with the department and paying service tax on their taxable services. On 19.09.2005, the appellant surrendered their service tax registration on the ground that the appellant are entitled for the benefit of Notification no. 6/2005-ST dated 1.3.2005 as their taxable services are below Rs.4 lakhs.

GTA -Assessee paid tax without abatement as per Circular of DGST - Later Board clarified assessee is eligible for abatement: Patna High Court
PATNA, SEPT 09, 2011: THE assessee is engaged in the business, inter alia, of production and circulation of news papers, and its printing activities are carried out in the township of Patna.The news papers were carried to different destinations by means of road transport, the service providers, the assessee being the consignor. The assessee is liable to payment of service tax on freight charges in view of the provisions of the Finance Act 1994. In view of the legal advice to the assessee to the effect that it was entitled to abatement of 75 percent of service tax on the gross value of taxable service, it submitted its returns and deposited Rs.41,006 being 25 percent of the service tax.

C&F Agency - Whether reimbursement of expenses includible in value - No conflict between Division Benches - Reference Returned: CESTAT Larger Bench
BANGALORE, SEPT 08, 2011: BY Miscellaneous Order dt 18.1.2011 - ( 2011-IST-188-CESTAT-BANG ) , the issue has been referred to the Larger Bench.

Credit Cards - Tax payable even prior to Finance Act 2006 - Cum Tax value to be adopted: CESTAT
NEW DELHI, SEPT 07, 2011: SHOW Cause Notice ( SCN ) dated 3.10.2007 was issued to the appellant making allegation of evasion of service tax. The adjudicating authority held that the nature of service provided by the appellants was "credit card services" within the meaning of the term "banking and other financial services" and invoked the taxable entry under Section 65 (72)( zm ) of the Act for levy of service tax on the taxable service provided by the appellant. Service Tax of Rs.2 ,67,56,142.00 was demanded along with penalties.

C&AG indicts CBEC for failure to collect due Service Tax from Banking and Other Financial Services: IST  
NEW DELHI, SEP 05, 2011: C&AG has come down heavily on the CBEC for deficiencies in levy, assessment and collection of Service Tax from providers of Banking and Other Financial Services. A staggering Rs.1923 crores is the reported financial implication of this failure, which includes additional revenue of Rs.264 crores.

Allegation in demand notice is promotion of brand name viz. INTEL INSIDE and MICROSOFT technologies and not promotion of branded goods - such activity has come into tax net w.e.f 01.07.2010 and not earlier – Pre-deposit waived and stay granted: CESTAT 
MUMBAI, AUG 31, 2011: A demand of Service Tax of Rs.67,80,664/- along with interest and penalties was confirmed by the CCE, Thane-I against the applicant M/s Zenith Computers Ltd. for the period July, 2003 to February 2007 under the category of "Business Auxiliary Services" on the ground that they were engaged in the activity of promotion of brand name.

Yet another High Court upholds Service Tax on Renting; levy and retrospective amendment not unconstitutional: Gujarat HC 
AHMEDABAD, AUG 30, 2011: IN these writ petitions, as common question of law is involved and validity of Sub-clause [zzzz] of Clause[105] of Sec.65 of Finance Act, 1994 as amended by Sec.75[5][h] and Sec.76 of the Finance Act, 2010 is under challenge, they were heard together and are disposed of by this common judgment.

Public debate on approach to GST begins with Concept Paper on taxation of services: IST
NEW DELHI, AUG 29, 2011: MAKING good Finance Minister's Budget promise to begin a broad based debate on the approach to GST, the CBEC today released a Concept Paper on taxation of services with emphasis on a negative list of services, which is not to be taxed.

Road Project on BOT basis - Toll charges collected towards'management, maintenance or repair' service - Where department itself maintained doubt, any bona fide belief that appellants might not be liable to pay tax, cannot be suspect - Pre-deposit waived: CESTAT 
MUMBAI, AUG 26, 2011: THESE are two stay applications filed for waiver of pre-deposit of Service Tax of amounts of Rs.1.32 Crores and Rs.5.82 Crores and equal amounts of penalties.

Service Tax on renting - Validity and Retrospective amendment upheld - Interim stay orders to continue till month end: Bombay HC 
MUMBAI, AUG 25, 2011: AMONG the taxable services is the taxable service in subclause (zzzz), to which the constitutional challenge in these proceedings relates. Subclause (zzzz) was initially inserted by the Finance Act of 2007 with effect from 1 June 2007.

Even prior to 19.04.2006 Service Tax on GTA service cannot be paid through CENVAT credit – Since President decides constitution of Larger Bench and since in case of ITC Ltd, President was one of Members, it is implied that issue in Panchmahal case stands settled: CESTAT  
MUMBAI, AUG 25, 2011: THE respondent is engaged in the manufacture of Moulded Plastic articles such as Furniture and Crates (SH 94.01 and 39.23 of CETA, 1985). The respondent paid service tax on transport of inputs (GTA service) through CENVAT credit. Proceedings were initiated against them on the ground that they wrongly debited service tax to CENVAT credit account

Artificially Created Light Energy is not goods - covered under Service Tax and not VAT - To levy tax on same aspect under both legislation is impermissible - Attempt to disobey Supreme Court Judgement viewed seriously - Karnataka Govt directed to pay costs: High Court 
BANGALORE, AUG 24, 2011: THE appellant, M/s Bharti Airtel Limited is one of India's leading telecom conglomerates offering telecommunication solutions to its customers on its own state of the art network. The functioning of the appellant and its activities, i.e. rendition of services are governed in terms of the licence granted by the Government of India, Ministry of Telecommunications, under Section 4 of the Indian Telegraph Act, 1885..

Movies to become dearer with CBEC set to tighten its act: IST
NEW DELHI, AUG 24, 2011:PURPORTEDLY to gauge the views of the stakeholders CBEC has revealed its real intention to charge Service Tax on exhibition of movies in any way it can by releasing a draft circular to solicit comments.  Claiming its earlier Circular dated 23.02.2009 has been misinterpreted to exclude all 'revenue sharing' arrangements from the levy of Service Tax, CBEC has now identified the service categories under which various services relating to movie exhibition would get classified for levy of Service Tax. 

FM enthused by TDS on Service Tax: IST
NEW DELHI, AUG 20, 2011:DESPERATELY seeking to garner additional revenue this fiscal, Finance Minister Pranab Mukherjee appears positively enthused by a proposal to introduce TDS in Service Tax.

Electricity produced in windmill situated away from factory transferred to Maharashtra Board Power Grid which in turn supplies equivalent quantum to appellant's factory - Services used for such windmills are Input Services for manufacturer - Cenvat Credit available: CESTAT
MUMBAI, AUG 19, 2011: THE appellant is located in Nagothane, Raigad District and they are engaged in manufacturing of excisable goods falling under chapter 73 of CETA, 1985. They availed CENVAT credit on various services rendered for their wind mill farm situated in Satara District.

Assessee having manufacturing at Chiplun, Ratnagiri but providing taxable service of 'renting of immovable property' at Mumbai - Mumbai AC has jurisdiction to issue demand and not Ratnagiri AC - Revenue appeal dismissed: CESTAT
MUMBAI, AUG 18, 2011: M/s HELIOS Food Additives Pvt. Ltd., Chiplun, District Ratnagiri is a manufacturer of food products. They are also engaged in providing the taxable services of renting immovable properties at Mumbai .

Repairs and maintenance Service of wind mills used for producing electricity situated away from factory are also Input Service - there is no mandate in law that Services should be used in factory unlike inputs - no reason for denial of Cenvat Credit: CESTAT
MUMBAI, AUG 17, 2011: BRIEFLY stated facts of the case are that the assessee is engaged in the manufacture of excisable goods viz. motor vehicle parts falling under Chapter 87 of CETA, 1985 at their factory at Waluj, Aurangabad. The assessee availed CENVAT credit of Service Tax paid on repairs and maintenance service of their wind mills situated at Supa and Satara.

CBEC unveils new scheme for refund of Service Tax to exporters: IST
NEW DELHI, AUG 16, 2011: CBEC today released a draft circular (See F.No. 354/66/2011-TRU in 'Whats New') inviting comments/ feedback of the exporting community on its proposed scheme to henceforth grant a refund of Service Tax paid on exported goods in like manner of duty Drawback.

Input Services used for job work – Cenvat Credit cannot be denied: CESTAT
MUMBAI, AUG 10, 2011: THE Revenue authorities almost always choose to turn a blind eye to the settled law and raise demands probably to derive a sadistic pleasure in the turmoil that follows - at the assessees end…of course.

Sub contractor collecting toll charges on Delhi-Noida toll bridge - Not liable to Service Tax before or after 10.09.2004: CESTAT
NEW DELHI, AUG 09, 2011: THE appellant herein was given a sub-contract by M/s. Noida Toll Bridge Company Ltd. (NTBC ) for specified functions relating to operations of Delhi-Noida toll bridge ( DND bridge). The appellant was permitted and authorized by NTBCL to collect toll from the persons who are using the bridge.

Sale of SIM cards is part of value for taxable service – Service Tax leviable; no sales tax – even if Sales tax is wrongly paid, Service Tax is payable: Supreme Court
NEW DELHI, AUG 05, 2011: THE present appeal is filed against the judgment and order dated 04.09.2008 2009-IST-18-HC-KERALA-ST passed by the Kerala High Court whereby and whereunder, the High Court allowed the appeal filed by the Commissioner of Central Excise & Customs, Cochin.

Service Tax on Charter of Aircrafts - Board Instructions Challenged - No Coercive steps before adjudication - validity of circular is kept open: Delhi HC
NEW DELHI, AUG 04, 2011: INVOKING the extraordinary jurisdiction of the High Court under Article 226 of the Constitution of India, the petitioner has prayed for issue of a writ of certiorari for quashment of the circular bearing Dy. No.20 / Comm (ST)/2009 dated 9th February, 2009 issued by the first respondent seeking to impose Service Tax on chartering of aircrafts under Clause (zzzzj) of sub-section 105 of Section 65 of the Finance Act, 1994 and further to issue a direction to the second respondent restraining it from initiating any proceedings to impose and collect Service Tax on chartering of aircrafts under the said provision.

Vivisection of turnkey contracts - ROM Applications misconceived and devoid of merit - Dismissed: CESTAT LB 
NEW DELHI, AUG 02, 2011: THIS is a complicated and interesting case. Eight years ago in Daelim Industrial Co Ltd v CCE , Vadodara 2003-TIOL-110-CESTAT-DEL, the CESTAT held that a works contract cannot be vivisected and part of it subjected to tax. This decision was followed in a large number of decisions, until one fine day in 2010...

Cenvat Credit available on Banking & Financial Services, Maintenance of Garden/Photocopying Services, Management Consultancy Services and Business Auxiliary Services but not on Catering Services and Insurance Services: CESTAT
MUMBAI, AUG 1, 2011: THE facts of the case are that the appellant are the manufacturer of Electrical goods and is a 100% EOU. During the course of their business of their manufacturing they availed several services and availed service tax paid thereon as input service credit. The input service credit on the following services availed by them was denied to them by the lower authorities on the ground that the same are not input service as defined under rule 2(I) of the Cenvat Credit Rules, 2004.

SBI pleads for Service Tax exemption on agency commission received from RBI: IST News Service
NEW DELHI, AUG 1, 2011: IN a bid to boost its bottom line State Bank of India (SBI), the countrys largest public sector bank has approached the Department of Financial Services to get it an exemption from the payment of Service Tax on the agency commission it earns from Reserve Bank of India (RBI) for conducting its non-tax Government Business.

When assessee paid service tax with interest before issue of SCN, matter covered by s. 73(3) - Penalties waived in terms of s. 80 - Cross objections filed by assessee considered as an appeal and allowed - Revenue appeal withdrawn for non-approval from COD: CESTAT
BANGALORE, JULY 30, 2011: IN this interesting case, the lower authority held that the assessee, a PSU Bank was liable to pay service tax on SWIFT charges for the period from 10.09.2004 to 30.04.2008 and confirmed the demand with interest and penalties. On appeal, the Appellate Commissioner upheld the demand for the period from 18.04.2006 to 30.04.2008 while setting aside demand of service tax for prior period.

Clearance of waste is an activity connected with manufacturing - appellants are entitled to avail CENVAT credit of service tax paid on transportation of waste generated during manufacture: CESTAT
MUMBAI, JULY 29, 2011: THE appellants are engaged in the manufacture of bulk drug. The waste chemicals generated during the course of manufacturing of finished product in their factory were transported to their waste treatment plant. For clearing the waste to the treatment plant the appellant were availing transportation facility for which they were paying service tax. The service tax paid on the transportation and removal of such waste was taken by the appellant's as CENVAT credit but the same was denied by both the lower authorities.

Market Research for foreign parent company - Not covered under Management Consultancy Service before 2007: CESTAT
NEW DELHI, JULY 28, 2011: THE appellant herein is subsidiary of M/s. Gillette USA. The appellant had, on instruction of their parent company, conducted a study viz. "South Asian Market Research" and charged fees from their parent company in the year 2000-01. The Revenue authorities on scrutiny of the balance sheet noticed that the said amounts have been shown as income arriving from 'Management Fees (Consulting fees)'. The adjudicating authority confirmed the service tax demand of Rs.33 ,25,550 /- under the head 'Management Consultancy Service' along with interest and imposed penalties under Section 75(A), 76, 77 and 78 of the Finance Act, 1994. Aggrieved, appellant preferred an appeal before the Commissioner( Appeals) who upheld the Order-in-Original.

Service Tax paid on telephone installed at partner's residence is also Cenvatable - department has not proved that telephone was used for other than business: CESTAT
MUMBAI, JULY 27, 2011: BRIEF facts are that the appellant, a manufacturer, availed CENVAT credit of Service Tax paid on telephone installed at the residence of one of the partners. The amount involved is a minuscule Rs.4,785/.

Limitation - Amount Billed shown in ST 3 return cannot be considered as relevant for purpose of time limit - Time limit of one year to be computed from ST 3 return showing amount realized: CESTAT
NEW DELHI, JULY 25, 2011: AN interesting issue came up before the Tribunal recently. The assessee did not pay service tax on the amount received as sub-contractor as he was under the belief that the main contractor would have discharged the service tax on the total value. Show Cause Notice was issued demanding service tax from them on the amounts received from the main contractor during the period from 29-09-04 to 03-03-2005. The Show cause notice was issued on 10-03-2006. The demand was confirmed by the lower authorities and the assessee is appeal before the CESTAT.

Service tax under Business Auxiliary Service (BAS) on computer embroidery work carried out on job work - CBEC Clarifies
CBEC has clarified that: The definition of BAS as provided under Section 65 (105)(zzb) read with Section 65 (19) of the Finance Act, 1994, does not include any activity that amounts to manufacture of excisable goods. It also mentions that excisable goods has the meaning assigned to it in clause (d) of section 2 of the Central Excise Act, 1944 and manufacture has the meaning assigned to it in clause (f) of section 2 of the Central Excise Act 1944. The Supreme Court in the case UOI v Nandi Printers Pvt. Ltd. held that "the mere fact that the rate of duty on printed cartons was NIL by reason of exemption would not make printed cartons non-excisable goods".

Adjudicating authority could not have conducted de novo proceedings as Commnr (A) has lost power of remand – remand order passed by CESTAT nullifies subordinate proceedings that had arisen out of O-in-A-Matter to be decided expeditiously by Commnr (A): CESTAT
MUMBAI, JULY 19, 2011: MULTIPLICITY of proceedings leads to strange situations. In this interesting case, the issue is whether the appellant-company, successor to Maharashtra State Electricity Board (MSEB), was rendering taxable service in the nature of "Consulting Engineers service" to the consumers of electrical energy during the period of dispute (April 2000 to March 2005).

Security Service - No provision in Law to exclude statutory liabilities like PF and ESI - Penalty reduced: CESTAT
NEW DELHI, JULY 15, 2011: THE Counsel submits that at the initial stage of introduction of law for levy of service tax under Finance Act 1994 in respect of security services, there were several confusions about the gross value of the service to become measure of value for payment of service tax. Only because of the confusion there was a discrepancy between the return and the profit and loss account. While Revenue's claim is that entire value of payments received from the consumer of service shall be taxable, the appellant pleads bonafide belief that statutory payments like ESI , PF etc. received, not being consideration for the services, shall not be taxable. Similarly they plead that the profit earned on the activity shall not be taxable, so also certain other expenses.

Payment received for sales made directly by principal - Assessee not a commission agent - not eligible for exemption Notification No. 13/2003: CESTAT
NEW DELHI, JULY 14, 2011: THE Respondents do lot of activities to promote sales of the products in a territory assigned to them. For some part of the sales they are acting as an Authorized Dealer. In such cases they buy the machines from JCBI and sell it to customers after loading a profit margin as agreed to between the parties. This part of the sales is not presently before us in any dispute. The dispute is about that part of the sales effected by JCBI directly in the territory assigned to the Respondent. For such sales the Respondents get a commission from JCBI as a percentage of the value of the sales. The question is whether such commission is eligible for exemption under notification 13/2003-ST.

Mobilising deposits, debentures and procuring land - BAS and Real Estate services - Pre-deposit of Rs. 34 Cr ordered out of demand of Rs 181 Cr: CESTAT
NEW DELHI, JULY 13, 2011: THE applicants are seeking waiver of pre-deposit of the service tax of Rs.180,73,32,993/- demands confirmed against them along with interest and penalties under the Finance Act, 1994 holding that applicants are engaged in providing the services to their clients i.e. SICCL under the category of "Real Estate Agent Service" and "Business Auxiliary Services".

GTA service - Exemption under Notification No 33/2004 ST is not admissible for Transport of Processed Mushrooms as same cannot be treated as fresh vegetables: CESTAT
NEW DELHI, JULY 12, 2011: NOTIFICATION No 33/2004 ST dated 3.12.2004 provides exemption from payment of service tax on Goods Transport Agency service in relation to transport of fruits, vegetables, eggs or milk by road in a goods carriage, from the whole of service tax leviable thereon under section 66 of the said Act.

Services rendered by Research Designs and Standards Organization - just because organization giving such service is constituted under statute activity does not become statutory function - Providing railway service cannot be considered as 'Sovereign Function' – Pre-deposit ordered: CESTAT
NEW DELHI, JULY 11, 2011: THE appellant, Research Designs and Standards Organization (RDSO), is as an Attached Office of the Ministry of Railways, Government of India. This office does research and development required by Indian Railways and functions as the Technical Advisor and Consultant to the Railway Board.

C&F Agents - Expenses on Clerks and telephone charges - Even if these expenses are separately billed to client, they will form part of value of taxable service - What is not provided by law cannot be extended by judicial interpretation: CESTAT
NEW DELHI, JULY 09, 2011: THE Appellant was providing clearing and forwarding services to M/s Whirlpool India Ltd during the period April 2001 to September 2005. The Appellant was receiving payment shown as commission/service charges from M/s Whirlpool India Ltd. Apart from this, the Appellant was also receiving amounts from M/s Whirlpool India Ltd under different heads like service charges for employees, freight for distribution/transportation of goods, loading/unloading of goods, ........

Cenvat Credit availed on GTA cannot be used for payment of GTA - Revenue appeal allowed: CESTAT
NEW DELHI, JULY 08, 2011: THE facts leading to this appeal filed by the Revenue are that the respondents are manufacturers of Colour Picture Tubes chargeable to central excise duty under Chapter 85 of the Central Excise Tariff. Since they also receive Goods Transport Agency (GTA) services in respect of which as per the provisions of Finance Act, 1994 read with Service Tax Rules, 1994, they are liable to pay service tax as service recipient they also have service tax registration. They also availed Cenvat credit of central excise duty paid on inputs and capital goods and of service tax paid on "input services" used in or in relation to the manufacture of the final products.

CENVAT Credit on 'professional fees towards providing advisory services for acquisition of company' - entitled: CESTAT
NEW DELHI, JULY 06, 2011: THE Appellant is before the Tribunal aggrieved by the denial of Cenvat credit on services availed by the appellant company on account of "professional fees towards providing advisory services for acquisition of company" during the year 2005-06. The credit was taken on 30.6.06 and the show cause notice was issued on 16.11.2010. The adjudicating authority reproduced the definition of "input service" in Cenvat Credit Rules and gave a finding that this service is not covered by the said definition without giving any detailed reasons why he considers so.

Activity of conducting stability test and validation analysis of samples of goods manufactured on job work basis - Stability analysis charges and validation charges recovered separately from principal exigible to tax under Technical Testing and Analysis service: CESTAT
BANGALORE, JULY 04, 2011: THE appellant was engaged in manufacture of P or P medicaments on job work basis. As a part of the manufacturing activity, the appellant conducted stability analysis and validation tests on samples and recovered ‘stability analysis charges' and ‘validation charges' separately from the principal. The original authority demanded service tax with interest and imposed penalties under sections 76 & 78 alleging that the appellant failed to follow statutory formalities for paying service tax under the head ‘Technical Testing and Analysis service'. The Cenvat Credit Rules, 2004 defines ‘Input Service Distributor' thus -

Corporate office issuing Input Service Distributor Challans using SAP system which results in factories getting immediate credit without physical receipt of challan - No prima facie cause for denying CENVAT credit - at best, interest can be demanded - Pre-deposit waived: CESTAT
MUMBAI, JUNE 29, 2011: RULE 2(m) of the Cenvat Credit Rules, 2004 defines ‘Input Service Distributor' thus -

Outward transportation of finished goods from place of removal covered by definition of 'input service' upto 31.03.2008: High Court
BANGALORE, JUNE 27, 2011: NETIZENS may recall that CESTAT Larger Bench in ABB Ltd & Ors 2009-IST-329-CESTAT-BANG-LBheld that the definition of 'input service' has to be interpreted in the light of the requirements of business and it cannot be read restrictively so as to confine it only upto the factory or upto the depot of manufacturers, thereby allowing CENVAT Credit of service tax paid on ‘ outward transportation from the place of removal '

Taxable services received from offshore service providers - specific provision making service recipient in India liable to pay ST was introduced only with effect from 18.4.2006 - during period prior 18.4.2006, Rule 2(1)(d) without backing of statutory provisions was not valid: CESTAT
NEW DELHI, JUNE 27, 2011: THE appellant are manufacturers of cement and cement clinker chargeable to Central Excise duty. They were also receiving taxable service services from various service providers including the offshore service providers not having any office in India.

CESTAT disposes of 50 appeals relating to GTA - Holds Service Tax on GTA service can be paid from CENVAT account upto 18.4.2006 - But from 19.4.2006, same cannot be paid from CENVAT account
CHENNAI, JUNE 23, 2011: DISPOSING of 50 appeals in a bunch, involving the question of whether CENVAT Credit can be utilised for payment of service tax on Goods Transport Agency service, the South Zonal Bench of CESTAT held that before the amendment to Rule 2(p) of the CENVAT Credit Rules 2004, on 19.4.2006, the assessees can avail CENVAT Credit for payment of service tax on Goods Transport Agency service, but from 19.4.2006 onwards, the payment is not allowed from CENVAT account. While arriving at the above finding the CESTAT has relied on the decision in 2011-IST-59-CESTAT-BANG. Incidentally, these 50 appeals were pending as the matter has been referred to the Larger Bench in case of Panchmahal Steel Ltd. v. Commissioner of Central Excise & Customs, Vadodara -II - (2008-IST-402-CESTAT-AHM) .

CENVAT Credit - Security Services provided at residential quarters of workers - not input service: High Court
AHMEDABAD, JUNE 22, 2011: THE short question before the High Court in this Revenue appeal is whether the security service provided by the respondent at the residential quarters maintained for the workers would be included in the term 'input service' as defined in rule 2(l) of the Cenvat Credit Rules. Term 'input service' has been defined in section 2(l) as under:

Section 66A inserted in Finance Act, 1994 with effect from 18.4.2006 laying down that recipient of services in India from outside India shall be liable to pay tax cannot be made applicable retrospectively - Revenue appeal rejected: CESTAT
AHMEDABAD, JUNE 20, 2011: THIS is a Revenue appeal.The respondents are engaged in providing the services under the category of 'Maintenance & Repair Service, Commercial Training & Coaching, Erection, Commissioning & Installation Service, Goods Transport Agency Services and Intellectual Property Service' and hold service tax registration.

Benefit of fourth proviso to Section 78 is not applicable if tax liability is reduced by Commissioner (Appeals): CESTAT
CHENNAI, JUNE 19, 2011: THE fourth provisos to Section 78 (before the substitution vide Finance Act, 2011) was as under:

Tennis Club registered as charitable institution - liable to Service Tax: : CESTAT
AHMEDABAD, JUNE 17, 2011: THE appellant is a non-profit organization registered under Bombay Public Trust Act and is engaged in providing service of health club/sports activities to its members.

Appellant, registered as 'Storage and Warehousing' provider also collects Handling & Transportation charges and also supervision charges – such charges are liable for ST under category of 'Cargo Handling Service': CESTAT
NEW DELHI, JUNE 14, 2011: THE appellant is a public sector undertaking engaged in the business of warehousing fertilizer and other items. They were registered with Service Tax Authorities for payment of tax on "Storage and Warehousing" charges.

Appellant providing software development services – Vending of coffee is in nature of catering service and is very essential especially for employees working in IT companies - repair of coffee vending machine is input service: CESTAT
MUMBAI, JUNE 13, 2011: THE appellant are providers of software development and support services and these services came into the taxable net w.e.f 16 th May, 2008. The appellant got themselves registered with the excise department on 24.07.2008.

Eligibility of CENVAT Credit on input services - Whether appellant is required to establish integral connection between service and manufacture of final products or to show that services relate to their business to avail CENVAT Credit - Matter goes to Third Member
BANGALORE, JUNE 10, 2011: THE appellant, M/s Telco Construction Equipment Company Ltd, Dharwad, is engaged in the manufacture of construction equipments, excavators and cranes of Chapter 84 of CETA and availed CENVAT of duty paid on inputs, capital goods and service tax on various input services. The appellant's corporate office at Bangalore is registered with the department as ‘input service distributor' and distributed service tax credits to its manufacturing facilities including that of appellant's facility at Dharwad.

A manufacturer can utilise CENVAT Credit for payment of Service Tax: CESTAT
CHENNAI, JUNE 09, 2011: IF you think that it is obvious and it does not need the support of the judgement of the Tribunal, you are not at fault. The concept of “Common CENVAT Credit Rules” for manufacturers as well as service providers has not yet percolated down to field formations, not to the lowest rank officers, but to the officers as big as Commissioners.

There is no scope for filing appeal or stay petition before Tribunal against order of AC which has been passed in de-novo proceedings and for limited purpose of quantification in terms of remand order of Commissioner (A) - Petition rejected: CESTAT
AHMEDABAD, JUNE 07, 2011: THE appellant before the CESTAT is Gujarat University and the matter concerns Service Tax.

Whether 'Mithi River' is a river or not is pure question of fact – appellant claims dredging activity is in a 'drain' and not in a river and hence not taxable - even agreement describes stream as 'Mithi River' - Prima facie appellant liable to pay Service Tax: CESTAT
MUMBAI, JUNE 03, 2011: 26th July, 2005, the day Mumbai received 994 mm of rainfall. At least, five thousand people lost their lives in the flooding that also took place in the districts of Thane, Raigad, Chiplun, Khed and Ratnagiri...

Foreign parties requisitioning services of appellant to provide import-worthiness certificates of sample goods in India – consideration for such services paid in forex not liable to Service Tax – Appeal allowed: CESTAT
MUMBAI, JUNE 02, 2011: THE short question is whether the services viz. "Technical Inspection and Certification Services" and "Technical testing and Analysis Services" rendered by the assessee during the period of dispute (1.7.2003 to 19.11.2003) were liable to be charged to service tax.

Appellant undertaking job of cutting and transportation of sugar cane grown by SSK Ltd. by arranging for tools and labourers – provisions of agreement have to be carefully examined – No case made out against demand of Service Tax – Pre-deposit ordered: CESTAT
AHMEDABAD, MUMBAI, MAY 31, 2011: THE appellant is a 'trust' registered under ' Bombay Public Trust Act' . Under an agreement with M/s Samarth Sevabhavi Sahakari Sakhar Karkhana Ltd., they agreed to harvest sugar cane grown by members of the SSK Ltd and also by others. The appellant, during the aforesaid period, got the work done through sub-contractors...

Deploying manpower, not service under Consulting Engineer - No deliberate suppression - no extended period of limitation: CESTAT
AHMEDABAD, MAY 26, 2011: M/S Indian Petrochemicals Corporation Ltd. (now M/s Reliance Industries Ltd.), Vadodara entered into contract with M/s Haldia Petrochemicals Ltd. (M/s HPL ) to provide the services for successful completion of pre-commissioning, commissioning, operation and maintenance of HPL plant, by deploying qualified manpower. By treating these services provided by the appellant falling within the definition of 'Consulting Engineer' as defined in Section 65(31) of Service Tax, Show Cause Notices were issued to the appellant demanding Service Tax short paid. The original adjudicating authority confirmed the demand and subsequently
the Commissioner(Appeals) upheld this order.

Determination of applicability of Notfn 13/03-ST has a direct impact on rate of service tax payable – therefore, as per provisions of sec 35D(3)(a), matter has to go before Division Bench – Mistake apparent on record – Order recalled: CESTAT
MUMBAI, MAY 25, 2011: THE facts of the case are that the appellant is a provider of service on commission basis to certain financial companies by way of collecting/forwarding prospective loanees and have been receiving commission for such service from the service receivers. Holding that such service is taxable under 'Business Auxiliary Service' and the appellant is required to pay service tax for the period from July, 2003 to 09.09.2004, a demand notice was issued by the jurisdictional authorities.

Banking and financial services received from abroad are not taxable prior to 18.04.2006: CESTAT
AHMEDABAD, MAY 24, 2011: THE respondents are 100% EOU engaged in manufacture of bulk drugs and fine chemicals. The dispute in the present appeal relates to their liability to pay Service Tax in respect of banking and financial services received by them from a foreign country.

Service Tax on overseas Trade Fairs/ Exhibition under ‘Business Exhibition Services' - Board Clarifies
NEW DELHI, MAY 23, 2011: As per a letter written by the CII, organizing a business exhibition involves three activities viz 1)hiring of premises outside India,2)arranging/coordinating installation of stalls and 3)renting of stalls to Indian Exhibitors.The first two activities are the services received by CII from outside India and third activity is service provided by CII within India. So the Board has clarified that ...

Sec 73(3) - After making provision in law, Revenue should respect provision made rather than feel aggrieved that provision is too lenient: CESTAT
NEW DELHI, MAY 23, 2011: THE observations of the CESTAT may probably not go down well with the ego that the Revenue authorities, on occasions, exhibit The respondent had collected service tax for certain period but did not remit such tax collected to the Government account. The matter was enquired into by the department. The respondent paid the tax along with applicable interest before issue of show cause notice.

In respect of Service Tax appeal, Bench has no discretion to refuse or to admit an appeal since there is no provision similar to Section 35B(1) of CEA, 1944 in section 86 of Finance Act, 1994: CESTAT
MUMBAI, MAY 21, 2011: WHEN the appeals filed by the company came up for "admission" before the Single Member Bench, the appellant submitted that since there is no provision similar to the second proviso to sub-section (1) of section 35B of the CEA, 1944 under section 86 of the Finance Act, 1994, in respect of service tax appeal coming within the jurisdiction of Single Member, the Bench has no discretion to refuse to admit the appeal.

Value of diesel and explosives supplied free of cost to service provider prima facie includible in taxable value for Service Tax - Benefit of Notification No 12/2003-ST not available as there is no ingredient of sale of goods by service provider to service recipient - Pre-deposit of Rs 10 Cr ordered: CESTAT
BANGALORE, MAY 19, 2011: THE assessee rendered 'site formation, clearance and excavation service' to M/s Singareni Collieries Company Ltd under a contract. They received diesel and explosives necessary for carrying out the service from SCCL and did not include their value in the taxable value for the purpose of payment of service tax. The department issued SCNs demanding an amount of Rs. 25.85 crores towards service tax along with interest and proposed penalties under sections 76, 77 and 78 of Finance Act, 1994. Aggrieved with the confirmation of demands and penalties, the assessee was in appeal before the CESTAT...

Service Tax in SEZ - All central laws apply to SEZ with modifications or exceptions, if any, as provided in SEZ Act itself - maintenance, repair and overhauling facilities to domestic as well as foreign aviation entities in SEZ, liable to ST: Advance Ruling
NEW DELHI, MAY 17, 2011: MAS-GMR Aerospace Engineering Company Ltd, the applicant has obtained a registration as a co-developer of an aviation specific SEZ adjacent to the Hyderabad Airport . The applicant either through itself or its 100% subsidiary or by a Special Purpose Vehicle ( SPV ) has proposed to set up a unit within the SEZ . The applicant has proposed to provide maintenance, repair and overhauling ( MRO ) facilities to domestic as well as foreign aviation entities. The applicant proposes to enter into a contract with an overseas entity located in Singapore who will procure contracts for MRO services from domestic and foreign airlines. ...

If main contractor pays Service Tax, should sub-contractor pay – Matter remanded - CESTAT
MUMBAI, MAY 16, 2011: THIS is a case with a chequered history. In the first round of litigation in Sunil Hi-Tech Engineers case - ( 2011-IST-232-CESTAT-MUM),the Tribunal held that introduction of works contract service in 2007 does not make construction service not taxable earlier, If goods are sold along with service benefit of exemption under notification No. 12/2003 has to be allowed; If main contractor pays service tax, sub contractor need not pay (prior to 23.8.2007)

Dry Leasing of locomotives by RITES - not liable to Service Tax: Advance Ruling
NEW DELHI, MAY 15, 2011: THIS is an application by a Public Sector Undertaking under the Ministry of Railways under section 96 C of Chapter V of the Finance Act, 1994. According to the applicant, it provides consultancy services in various facets of transportation like Railways, Highways, Airports, Urban transport, Ropeways etc. in India and abroad.

Production of evidence for exclusion of reimbursable expenses from gross taxable value – appellant failing to convince whether same was produced before adjudicating authority – no remand - Pre-deposit ordered: CESTAT
MUMBAI, MAY 14, 2011: THE appellant renders ‘advertising service' and is registered with the department. As per the circular issued by the Director General of Service Tax (DGST), out-of-pocket expenses for travelling, lodging and boarding were excludible from the gross taxable value provided documentary evidence thereof was produced.

Service Tax on Short Term Accommodation Service and Restaurant Service - CBEC Issues Clarifications
NEW DELHI, MAY 11,2011: THIS year's Budget saw two new services entering the field:(zzzzv) to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises;(zzzzw) to any person by a hotel, inn, guest house, club or campsite, by whatever name called, for providing of accommodation for a continuous period of less than three months.

Service Tax – Construction falling under Works Contract Service Taxable prior to 1.6.2007 – Prima facie case in favour of Revenue – Pre-deposit ordered: CESTAT
BANGALORE, MAY 11, 2011: THIS is an application for waiver from the requirement of pre-deposit

Recipient of GTA service who is not engaged in providing any taxable output service or manufacture of dutiable final product not entitled to utilize CENVAT Credit A/c for discharging ST on GTA services: CESTAT
BANGALORE, MAY 10, 2011: THE appellant, having centralized service tax registration for their 114 branches located in the states of Andhra Pradesh, Karnataka, Tamilnadu and Rajasthan, are paying service tax as a recipient of GTA services in terms of section 68(2) of Finance Act, 1994 read with Rule 2(1)(d)(v) of Service Tax Rules, 1994. They were neither providing any output service to any clients nor manufacturing any dutiable final products but availed credit of service tax paid on a number of input services viz., security service, telephone service, courier service, accounts service, scientific & technical consultancy service and utilized the same for payment of service tax on the GTA services received by them.

Although appellant, a PSU, does not have mala fides to avail excess credit but since they have contravened provisions of law by taking excess credit, penalty is imposable: CESTAT
MUMBAI, MAY 06, 2011: THE facts are that a show-cause notice was issued to Bharat Sanchar Nigam Ltd. alleging that they have availed inadmissible CENVAT credit on capital goods inasmuch as they have availed 100% credit on capital goods instead of 50% during the year 2006-07. It was also noticed that the appellants were providing taxable as well as non taxable (exempted) services and had availed CENVAT credit on inputs, capital goods and input services which are used commonly for both taxable and non-taxable services. As the appellants were not maintaining separate inventory for taxable and non-taxable services, they were required to utilize the CENVAT credit only to the extent of an amount not exceeding 20% of amount of service tax payable on taxable output service.

TDS? - Tax paid by service recipient instead of provider - Demand and penalty quashed: CESTAT
NEW DELHI, MAY 05, 2011: THE appellants were engaged by M/s Bharat Sanchar Nigam Ltd, Moradabad for providing security services vide an agreement. The terms and conditions were mutually agreed upon. The BSNL was reluctant to pay the service tax on the invoices raised by appellants and instead BSNL started deducting the amount of service tax from the invoices raised by the Appellants. BSNL kept depositing the said amount of service tax in Punjab National Bank, Moradabad nominated for payment of service tax.

Advertising - Claim that main contractor paid Service Tax - Matter remanded to verify whether main contractor paid tax: CESTAT
NEW DELHI, MAY 04, 2011: THE appellants are providing services of advertising by exhibiting, selling brands to their clients directly and as well as sub-contractor to the main advertising agency. The appellants are paying service tax on the advertisement services which they provide directly to their clients. But the services provided to advertising agency as sub-contractor, they are not paying service tax on these services as the main contractor is discharging service tax liability on these services. Therefore, it was alleged that as the appellants are providing advertising agency services to main contractor, therefore, they are liable to pay tax for these services. Accordingly, show cause notice was issued, the same was adjudicated and demand, interest and penalties were confirmed. Aggrieved from the said order, the appellants are before the Tribunal.

Service Tax on Port Services – Larger Bench rules that there is no requirement to refer to Port Trusts Act for provisions other than clause (q) of Sec (2) of Port Trusts Act, 1963 or clause (4) of Sect (3) of Indian Ports Act – Stevedores are liable for Service Tax under Port Services: CESTAT
CHENNAI, MAY 03, 2011: IN a bunch of appeals relating to liability of service tax on port services, the Chennai Bench of the Tribunal differed with the earlier decisions in cases of
...

Liability to pay service tax on spare buses having spare permits – Carriages which run under public transport where passengers have a right to board and pay fares individually, do not fall under definition of 'tourist vehicle' under sec 2(43) of Motor Vehicles Act: Madras HC
CHENNAI, APR 27, 2011: THE petitioners filed Writ Petitions in the High Court which raises a common question as to whether the petitioner, a stage carriage operator having a spare bus permit is liable to be brought under the tax net for payment of service tax in respect of such spare bus

Maintenance of software is not taxable before 1.6.2007 - Board's Circular No. 81/2005- ST, not applicable: Madras High Court
CHENNAI, APR 21, 2011: THE writ petition is to declare the Circular No. 81/2005 dated 7.10.2005 issued by the Central Board of Excise and Customs as ultra vires section 83 of Finance Act, 1994 read with sections 37B and 65(19) of the Central Excise Act, 1944 and in violation of Articles 14, 19(1)(g) and 265 of the Constitution of India...

SCN did not propose to demand service tax under head 'Scientific and Technical Consultancy Services' – confirming demand under said category iss not proper – Pre-deposit waived and stay ordered: CESTAT
MUMBAI, APR 20, 2011: A Service Tax demand was raised against the appellant for the period 01.04.2004 to 31.03.2005 in respect of “Intellectual Property Rights Services”.

C&F Agents - Whether reimbursement charges are includible in taxable value - Matter referred to Larger Bench: CESTAT
BANGALORE, APR 19, 2011: THE appellant is providing taxable service under the category of "Clearing & Forwarding Agent Services".

A 80-year-old appellant with no independent income states that he has no concern whatsoever with firm charged with liability to pay Service Tax - Pre-deposit waived: Delhi HC
NEW DELHI, APR 14, 2011: THIS is an appeal against the order dated 08.06.2010 of Customs, Excise & Service Tax Appellate Tribunal (CESTAT). Vide this order, appellant was directed to make a pre-deposit of Rs.20.00 lakh in addition to already deposited sum of Rs.5.00 lakhs. The appeal has been filed challenging the impugned order on various grounds.

Services covered under works contract service taxable even prior to 1.6.2007 - Section 65(105)(ZZZZa) is more like heading 98.01 of India Customs Tariff - Penalty under both Sections 76 and 78 imposable: CESTAT
NEW DELHI, APR 13, 2011: THE Appellant, a company registered under the Companies Act, have manufacturing facilities at GIDC , Makanpura , Vadodara and Pollachi Road, Coimbatore where they manufacture various electronic goods used for signalling systems, used mostly by railways. In 2001, a consortium consisting of M/s. Alstom Transport Ltd. India (the Appellant Company), M/s. Alstom Transport SG ( ATSA ), M/ s.ALCATEL Portugal SA (ALCATEL) and Sumitomo Corporation ('Sumitomo') was awarded a Contract (SYS-1) by Ms. Delhi Metro Rail Corporation Ltd. ( DMRC ) for "Design, manufacture, installation and commissioning of train control, signalling and telecommunication systems including training of operation and maintenance personnel, supervision of maintenance of train control, signalling and telecommunication systems, supply of spares and operation and maintenance manual" for the section of DMRC between Shahdara to Rithala and Vishwavidhyalaya to Central Secretariat. The consortium was led by the Appellant Company

ST on reimbursement - Prima facie, service-provider has to pay ST on gross amount collected from customer - expenses not returned in ST returns for purpose of payment of tax – Prima facie, charges of suppression proved – Pre-deposit ordered: CESTAT
MUMBAI, APR 11, 2011: THE appellant paid service tax on “erection, commissioning and installation” services provided to their customers during the period April, 2003 to March, 2006. However, they did not pay any service tax on the ‘reimbursable expenses' incurred by them in connection with providing of the above services to the customers. Incidentally, these expenses were shown separately in the relevant invoices issued.

Appellant getting residential houses built by contractor who collected Service Tax from them and deposited it with exchequer under protest – refund claim should satisfy requirements of s.11B of CEA, 1944 – orders passed by authorities lacking in clarity - Matter remanded: CESTAT
MUMBAI, APR 10, 2011: THE appellants got residential houses built for them by a contractor (builder), viz. M/s. Raj Udyog Ltd. The builder collected service tax from the appellants and issued receipts to them during May to October 2006 and thereafter credited the amounts to the exchequer during January to March 2007. The builder's remittances of service tax to the government were “under protest” and which was endorsed on the challans. The appellants filed refund claims on 2.4.2008. All these claims were rejected as time-barred. The orders of the original authority were upheld by the Commissioner (Appeals).

Laying pipelines for Gujarat Water Resources Development Corporation; not taxable; However, appellant paid tax and took CENVAT Credit - No penalty for wrong credit: CESTAT
AHMEDABAD, APR 06, 2011: YOU are doomed if you don't pay Service Tax. What happens if you pay it? You are still doomed.

Service availed by appellant for construction of factory and office buildings of factory are, covered by definition of 'input service' - Prima facie case in favour of appellant - pre-deposit waived: CESTAT
NEW DELHI, APR 05, 2011: THIS is an application for waiver from the requirement of pre-deposit of Cenvat credit demand of Rs.1,15,81,957 /- alongwith interest confirmed against the appellant and penalty of Rs.1,15,81,957 /- imposed on them under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944, vide order-in-original No. 85/SSS/CE/2009 dated 31/12/09 passed by CCE , Delhi - III and also for stay on recovery thereof till the disposal of the appeal.

ST paid on Banking and Other Financial Services being advisory charges in connection with private placement of preferential equity shares is an activity related to business and is an Input Service - Prima facie case - Stay ordered: CESTAT
MUMBAI, MAR 31, 2011: THE assessee is engaged in the manufacture of motor vehicle parts, steel parts, steel forgings, etc. and availed Cenvat credit of service tax amounting to Rs.37,29,436/- paid on services provided by M/s P L Advisory Services Pvt. Ltd., on banking and other financial services being advisory and placement charges in connection with the private placement of their 7.57 million preferential equity shares.

Ongoing Works Contract as on 01.06.2007 - Prima facie, case alone is not sufficient for granting stay - Principles laid down in earlier case of HC reiterated - Stay Order upheld: HC
HYDERABAD, MAR 29, 2011: THIS is a Writ Petition filed by the service provider-appellant against the Stay Order of the Tribunal [ 2011-TIOL-374-CESTAT-BANG ] . Issue relates to switching over to Works Contract Composition Scheme as on 01.06.2007, for on-going works contract. The appellant raised a point as to whether Tribunal committed an error in not examining the case in Nagarjuna Construction Ltd Vs Union of India and whether the Tribunal erred in not granting stay based on prima facie case.

Works Contract Service - Benefit of composition scheme not available for on-going contracts where ST was paid under existing three heads of taxable services prior to 01.06.2007 - Benefit of abatement available - Pre-deposit of Rs 2.66 Cr ordered and stay granted: CESTAT
BANGALORE, MAR 25, 2011: PRIOR to 01.06.2007, the appellant paid service tax under the head “Commercial or Industrial Construction Service” under Section 65(105) (zzq) of the Finance Act 1994. After the introduction of levy of Service Tax on “Works Contract” with effect from 01.06.2007, assessee informed the department on 18.06.2007, that they were opting for payment of service tax under works contract service under the compositions scheme.

Assessee exporting goods through merchant exporter under an agreement that service tax of services engaged by exporter would be borne by manufacturer - Refund claim filed by manufacturer - No other person can claim refund of ST paid on services availed by exporter - Restricted view to be taken: CESTAT
MUMBAI, MAR 23, 2011: THE facts of the case are that the assessee is engaged in manufacture of DOC (Soya Extraction Meal) and same were being exported through merchant exporter. During the course of export, the merchant exporter availed certain taxable services. There was an agreement between the assessee and the merchant-exporter which inter alia provided for payment of service tax by the assessee in respect of above services availed by the merchant-exporter for the export of goods manufactured and supplied by the assessee.

Income declared to Income Tax Department cannot be treated as proceeds of service provided - least expected from Counsel for department is to know status of order followed in impugned order: High Court
CHANDIGARH, MAR 22, 2011: THE substantial question of law is:"Whether Tribunal is justified in holding that the amount of Rs.35 lacs surrendered to the Income Tax Authorities is not attributable to consideration received in relation to Mandap Keeper Services".

Eligibility of CENVAT credit of service tax paid on sales promotion service availed for promotion of goods manufactured by appellant – Sales promotion specifically covered in definition of 'input service' – Full waiver of pre-deposit of Rs. 61.44 Cr ordered: CESTAT
BANGALORE, MAR 21, 2011: THE Appellants, L&T Komatsu Ltd is engaged in the manufacture of hydraulic excavators. They entered into a sole selling agreement with Larsen & Toubro Ltd ('L&T') wherein L&T was appointed as the exclusive agent to market various products manufactured by them and paid commission for rendering such service to the appellant.

Erection & Commissioning service – All taxable services rendered in relation to transmission and distribution of electricity covered by Section 11C notification No. 45/2010-ST dated 20.07.2010 – Prima facie case for full waiver of pre-deposit: CESTAT
BANGALORE, MAR 18, 2011: THE appellant was engaged in providing erection and commissioning service and rent-a-cab service to electricity supply companies like HESCOM and Gulbarga Development Authority. The appellant is before CESTAT seeking stay of service tax demands amounting to Rs. 41.70 lakhs along with mandatory penalty of equivalent amount.

Refund under Notification No 41/2007-ST – Provisions of amending Notification No 33/2008-ST are not applicable for exports made prior to date of amendment, though claims were filed after amendment: CESTAT
AHMEDABAD, MAR 17, 2011: THE dispute pertains to the refund of service tax paid on the services used for goods exported under Notification No 41/2007 ST dated 6.10.2007. This notification was amended vide Notification No. 33/2008-ST dated 07.12.2008 to delete the condition that the goods should be exported without availing the drawback facility and to increase the upper limit of refund amount in respect of the foreign commission agents to tax payable on 10% of the FOB value of the exports instead of 2% earlier.

Consumption of service in India is not taxable event - Situs of tax would be where taxable event occurs and not where effect or consequence thereof is felt: CESTAT
MUMBAI, MAR 16, 2011: THE demand of Service Tax of Rs.69,70,343 /- has been confirmed against the appellant along with imposition of penalty of equivalent amount under Section 78 of Finance Act, 1994. In addition, penalty of Rs.1,000 /- under Section 77 and penalty of Rs.100 /- per day under Section 76 of the said Act, have been imposed. The said demand stands confirmed on the ground that the appellants have rendered "Consulting Engineer Services" to M/s IOCL Gujarat.

No Writ Petition when there is an adequate or suitable alternative remedy-Remedy however should not be a mirage, futile exercise or an appeal from 'Caesor to Caesor's wife – High Court
NEW DELHI, MAR 15, 2011: THE petitioner companies/concerns are engaged in ship broking and other activities. It is submitted that as a ship broker the petitioners assists, guides and supports the ship owner and the ship charterer to negotiate a deal and conclude a fixture. Brokerage is paid by the ship owner and sometimes through a charterer. The petitioners also undertake distinct activities like ship agency, services to clients for loading/unloading of cargo, act as port agents, facilitate and procure berth hiring, etc. The petitioners are registered with the Service Tax Department under the category of 'Steamer Agent Service' and have been filing returns and paying service tax. 'Steamer Agent Service' was brought into the service tax net by the Finance Act, 1997 with amendment and enactment in form of Clause (i) to Section 65(105) read with Section 65(100).

HDFC Bank Ltd directed to pre-deposit Rs 74 lakhs Service Tax: CESTAT
MUMBAI, MAR 14, 2011: Service Tax demand of Rs.74 lakhs under the head "Banking and other Financial Services" (BOFS) was confirmed against HDFC Bank Ltd . by the CCE, Thane-II . This demand is on certain charges collected by the bank from their credit card-holders in respect of the service through credit cards availed by them abroad. Inasmuch as when the card holders used the cards for shopping abroad, they had to pay in foreign currency and HDFC recovered from them, in addition to the exact value of the goods in foreign currency, 3.5% towards what they called "margin of profit". The taxable value for the demand is the aggregate of this margin collected by HDFC from their credit card holders, who used cards abroad during the material period (April 2002 to April 2006).

No Stay merely because a prima facie case has been shown; Tribunal's Stay of over 100 Crores quashed: High Court
ANDHRA PRADESH, MAR 11, 2011: THIS is a Revenue appeal in the High Court against a stay order of the CESTAT. The respondent runs various coaching centres in Andhra Pradesh and other States in India. Coaching is imparted for various courses like Intermediate (10 + 2), Engineering And Medical Courses Entrance Test, and other admission tests. For the four years i.e., 2003-04 to 2006-07, the respondent allegedly charged monetary consideration from students to the tune of Rs.823,20,45,019/-. The respondent's activity of commercial training or coaching service attracts levy of service tax under Sections 65 (26) and (27) read with sub-section (105)( zzc ) of the Finance Act, 1994. After coming into force of the amendment to Section 65(105) of the Finance Act, in spite of advice by the Revenue, the respondent did not obtain registration.

Appellant collecting octroi on behalf of Municipal body – whether taxable to ST under 'Banking and Other Financial Services' – Exclusion clause 'but does not include cash management' in definition omitted w.e.f 01.06.2007 - absence of exclusion cannot be reckoned as inclusion – Pre-deposit waived: CESTAT
MUMBAI, MAR 06, 2011: UNDER a contract, the appellant was liable to collect octroi on behalf of the Municipal Corporation from persons who were liable to pay the tax, and to remit the same to the Municipal Corporation according to the scheme laid down under the contract. According to this scheme, the appellant should credit 2% of the amount of contract (Rs.68,02,016/-) every week for 50 weeks, irrespective of the amount of octroi collection. The last installment of the octroi was to be paid on 19.09.2008. Any excess collection over and above what was liable to be paid to the Municipal Corporation in every week could be retained by the appellant towards their remuneration. The demand under challenge is the levy of service tax on this amount.

Notification 1/2006-ST - Condition of not taking 'credit of duty paid on inputs used for providing such taxable service' necessarily should relate to services actually rendered – since appellant discharging Service Tax as recipient and deemed provider, curbs laid down in the said Notification did not apply: CESTAT
MUMBAI, FEB 25, 2011: NOTIFICATION 1/2006-ST allowed abatement of 75% of the taxable value for the purpose of discharge of service tax under the category of GTA service on the condition that the service provider had not availed credit on inputs and capital goods and input services used for providing the service. Exemption is also subject to the condition that the service provider has not availed the benefit of Notification no. 12/03-ST dated 20.6.2003.

Enabling applicant to retrieve own processed data from common IT infrastructure facility outside India is prima facie not taxable under 'Online information and data base access and retrieval' service: CESTAT
NEW DELHI, FEB 24, 2011: THIS is an application for stay of the order confirming the demand of service tax of nearly Rs. 11 crores under "Online information and data base access and retrieval" service received from outside India.

Renting of Immovable Property - Service recipient is required to pay ST to service provider even if contract did not specifically mention it; it is service which is taxed, and levy necessarily means that user has to bear it: Delhi HC
NEW DELHI, FEB 23, 2011: WHAT happens when you enter into an agreement to provide service (with no mention of Service Tax as there was no tax on the services at the time of providing the service) and Service Tax is imposed on the service and the client refuses to bear the tax as there was no contractual obligation? File a civil suit and the Delhi High Court has recently allowed such a suit.

Refund - Assessee forced to pay tax - tax deemed to be paid under protest - Claim not barred by limitation: High Court
CHENNAI, FEB 21, 2011: AN Assistant Commissioner granted a refund of Rs. 2,15,463 of Service Tax as the assessee was not liable to pay the tax. The Commissioner reviewed the recovery of the refunded amount with interest. On appeal, the Tribunal set aside the Commissioner' s order rejecting the stand of the Commissioner that the claim of the assessee was barred by limitation as well as on other grounds.

Assessee reimburses employees coaching fees paid from own pocket to service provider for coaching services received outside India - employer has not made any payment to such coaching centre which is basic requirement of Board Circular to levy service tax - Revenue appeal rejected: CESTAT
MUMBAI, FEB 18, 2011: THE facts of the case are that the respondent incurred expenses towards training fees for imparting commercial training to their staff outside India from overseas commercial training institute who did not have any office in India.

Mandap Keeper - contract of a Mandap keeper with its customer, even if it involves catering service, is a contract of service not a contract for sale - cost of food cannot be deducted: CESTAT
NEW DELHI, FEB 17, 2011: THE Appellant's plea is that their transactions as Mandap Keeper with their customers involve sale of food and beverages on which sales tax/VAT levied by the State Government is paid, as well as service in relation to use of Mandap and the invoices issued by them show the value of food and beverages supplied, and therefore, the benefit of exemption under Notification No. 12/03-ST cannot be denied to them.

Commercial or Industrial Construction Service - Laying of pipelines for water supply projects run by Gujarat Water Supply and Sewerage Board, not leviable to tax: CESTAT
AHMEDABAD, FEB 15, 2011: THE appellant entered into a contract with M/s Gujarat Water Supply & Sewerage Board ( GWSSB ) for the work of design, build, operate contract for distribution of water under Mehsana District Water Supply Scheme...The issue before the Tribunal is whether by purchasing water at one rate and selling at higher rates, the pipeline constructed can be said to be used or to be used primarily for commerce or industry so that the activity undertaken by L&T for GWSSB becomes liable to Service Tax.

Appellant not entitled to claim refund as interest paid was linked to Service Tax paid and was already utilized as CENVAT credit - presence or absence of provisions of refund immaterial: CESTAT
MUMBAI, FEB 14, 2011: THE appeallant had received 'business auxiliary services' from foreign commission agents during the priod from 10.9.2004 to November, 2006. In terms of Rule 2(i)(d)(iv) of the Service Tax Rules, 1994, inserted w.e.f. 16.8.2002, they paid the service tax on the commission paid to the foreign commission agent...Interest ...on this amount of service tax was paid ...CENVAT credit of the above service tax was taken and utlized by the appellant for payment of duty on their final prodcuts...

Certification of pollution level in factory premises - Availment of credit of Service Tax paid by agencies conducting such certification is proper: CESTAT
MUMBAI, FEB 12, 2011: THE appeallant is engaged in the manufacture of cement, which is governed by the pollution control laws. This law requires periodical certification of pollution level in the factory premises...As requried by law, the appellant availed the service of certificaiton of pollution level in their factory premises....The Service Tax paid by the said agencies was availed as CENVAT credit by the appeallant treating the same as "Input Service'...

Setback to exporting community – Tribunal rules no refund of education cess under Notification No 41/2007 ST for services used in goods exported
KOLKATA, FEB 11, 2011: IN terms of Notification No.41/2007-ST, refund of service tax paid on serevices used for export of goods is allowed. Refund of education cess under this notificaiton was disallowed by the lower authorities to the exporter and the same was upheld by the Commisisoner (Appeals)...

Commissioner (Appeals) has power to remand in Service Tax cases: CESTAT
CHENNAI, FEB 10, 2011: WHETHER the Commissioner (Appeals) has power to remand is an oft repeated question that comes before the Tribunal. While the Commissioner (Appeals) continued to remand the cases, the department never stopped filing the appeals against such remand orders.
.

CESTAT sets aside order denying CENVAT credit of service tax paid before 18.4.2006
NEW DELHI, FEB 09, 2011: FOR many years the revenue was of the view that service tax on services received from outside India was to be paid even before the insertion of Section 66A in the Finance Act, 1994 with effect from 16.4.2006. Notices were issued demanding service tax in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994...

Section 80 does not provide for reducing penalty under Section 76 below prescribed minimum
AHMEDABAD, FEB 08, 2011: THE question of law before the High Court was: "Whether the penalty under section 76 of the Finance Act, 1994 can be reduced below the limit prescribed by the section?"

Penalty under Section 76 may not be justified if penalty had already been imposed under Section 78: High Court
CHANDIGARH, FEB 04, 2011: THE assessee is a service provider. According to the department, there was short payment of service tax...

Relevant date for filing of refund of credit in respect of Export services is date when payment of service (exported) is received and not date of providing service: CESTAT
MUMBAI, FEB 03, 2011: IN this case, the Commissioner(A) held that the relevant date for filing of refund claim under rule 5 of CCR, 2004 in respect of Export Services is the date when the payment of service (exported) is received by the assessee and not the date when the service is provided.

Maintenance of application software already licensed and installed in computer systems of banks is correctly classifiable as 'IT service' and not as 'Maintenance or repair services': CESTAT
MUMBAI, FEB 02, 2011: THE question for consideration before the CESTAT is whether the service rendered by the appellant to their clients (banks) during the period of dispute (09/07/2004 to 30/04/2006) is taxable under the head ‘management, maintenance or repair service' in terms of Section 65 (105) (zzg) of the Finance Act, 1994.

Payment of Service Tax on GTA - utilizing Credit earned on GTA - Permissible prior to 19.04.2006: CESTAT
BANGALORE, JAN 31, 2011: THE respondents, manufacturers of excisable goods are also registered for payment of service tax under the category of Goods Transport Agency (GTA) and had utilized cenvat credit in relation to the payment of service tax on GTA services received by them.

Quasi-judicial discipline reinforced by rejection of premature writ petition: Madras High Court
CHENNAI, JAN 31, 2011: In a judgment that restores confidence in the system of quasi-judicial decsion making and discourages a direct approach to the Courts, the Madras High Court has directed that the Department's show cause notice and determination of the matter must first be completed.

Service Tax All Industry Rate of Drawback to bring relief to exporters: IST
NEW DELHI , JAN 30, 2011: The Central Board of Excise & Customs (CBEC) recently set in motion a chain of events that promises significant relief to the exporting community. When the decision is implemented, the exporters will no longer have to run from pillar to post to get their due refunds of service tax paid on exported goods and will instead see the same credited automatically in their bank accounts.

Transactions between Associated Enterprises - Due date for payment of service tax - Amendments to Section 67 of Finance Act, 1994 and Rule 6 of Service Tax Rules have no retrospective application: CESTAT
CHENNAI , JAN 25, 2011: IN early 2008, the CBEC found that as per rule 6 of the Service Tax Rules, 1994, service tax is required to be paid only after receipt of the payment.

Re-charging of ground water levels, reduce problems arising out of floods in river, provide recreational facilities for citizens – service falling in exclusion clause u/s 65(97a) as it is in relation to irrigation, repairing, or restoring of water sources – Prima facie case for waiver of pre-deposit: CESTAT
MUMBAI, JAN 24, 2011: ITD Cementation India Limited (ITD Cem), an Indian subsidiary to Italian-Thai Development Public Company Limited (ITD), is a leading construction company, with over seven-decade presence in India. ITD Cem has a strong presence in construction of Marine works, Highways, Bridges, Industrial Projects, Hydro-Tunnelling, Dams & Canals and Specialist / Foundation Engineering Projects.

Appeals filed by Trig Detective Pvt Ltd restored by Bombay High Court as appellant hands over a Pay Order of pre-deposit amount of Rs 3 crores ordered by CESTAT
MUMBAI, JAN 22, 2011: THE appellants are engaged in providing Security Agency's services and are liable to pay Service Tax w.e.f 16.10.1998.

Club Membership is not an Input Service: CESTAT
MUMBAI, JAN 21, 2011: THE Input Service conundrum continues unabated and assessees and the department leave no stone unturned to test the definition of ‘Input Service' laid down in rule 2(I) of the Cenvat Credit Rules, 2004.

Private Buses hired to UPSRTC – whether liable to Service Tax - Writ and appeal by UPSRTC not maintainable as UPSRTC is not aggrieved party: SC
NEW DELHI, JAN 21, 2011: THE appellant, UPSRTC filed a writ petition before the Allahabad High Court, Lucknow Bench, challenging the communication of the Service Tax Department sent to the appellant herein requesting to supply the list of contractual assignment entered into between the private parties who have offered their buses on rent basis to the appellant.

Manufacture of goods containing alcohol – at material time all activities which amounted to manufacture within meaning given under section 2(f) got excluded, whether or not such manufacture resulted in excisable product – Not liable to ST under BAS: CESTAT
MUMBAI, JAN 20, 2011: THE appellants manufacture excisable ‘P or P medicines' falling under sub-heading 3003.10 of the Central Excise Tariff

Jungle cutting service is an input service as appellant is required to keep surroundings of factory bacteria free to ensure that finished goods are not contaminated – Picnic Service does not have any nexus with business activity: CESTAT
MUMBAI, JAN 19, 2011: THE appellants have been denied input service credit on the following services holding that these services have no nexus with the manufacturing activity of the appellant hence they are not entitled to take input service credit, as per rule 2(1) of the Cenvat Credit Rules, 2004

Air Travel Service and Tour Operator Service are input services entitled to Cenvat Credit: CESTAT
MUMBAI, JAN 17, 2011: THE assessee is engaged in the manufacture of excisable goods falling under chapter 73 & 76 of CETA, 1985 and they are availing Cenvat credit on inputs, capital goods and service tax paid on various input services.

Collecting entry fee at airport on behalf of AAI - amounts to taxable service: Supreme Court
NEW DELHI, JAN 14, 2011: THE issue before the Supreme Court is whether the appellant, who is a licencee , could be held liable for payment of service tax when actually the service provided by them could and should be said to be provided by the Airport Authority of India ("AAI").

Non-maintenance of separate accounts of input services - Reversal of pro-rata Cenvat Credit availed – issue settled in favour of respondent assessee by retrospective amendment made in rule 6 of CCR, 2004 by Finance Act, 2010 – Revenue appeal rejected: CESTAT
MUMBAI, JAN 13, 2011: THIS
is an appeal filed by the Commissioner of Central Excise, Pune I against an order passed by the lower appellate authority.

Service Tax - Sub-contractor liable to pay Service Tax - Cum Duty Benefit and CENVAT Credit if entitled, to be allowed: CESTAT
NEW DELHI, JAN 12, 2011: THE short issue in this case is whether the sub-contractor who provided service to the main contractor shall be exempted from levy of service tax. The appellant being a sub-contractor of BHEL , executed certain work for such main contractor. The main contractor BHEL was awarded work order by BESCL...

Sub-contractor liable to pay Service Tax - Cum Duty Benefit and CENVAT Credit if entitled, to be allowed: CESTAT
NEW DELHI, JAN 12, 2011: THE short issue in this case is whether the sub-contractor who provided service to the main contractor shall be exempted from levy of service tax.

Supply of Vessels to ONGC not covered under Mining Service - Bombay HC's quashing of notice upheld - None of entries in Schedule could be strictly said to be a service rendered in relation to mining of oil or gas; There is justification in findings arrived at by HC: Supreme Court
NEW DELHI, JAN 11, 2011: THIS appeal is directed against the judgment and order dated 23.3.2009 2009-IST-08-HC-MUM-ST quashing the notices issued by the Service Tax Department to the Members of the respondent Association by holding that the entry contained in Section 65(105)(zzzy) [Service provided in relation to mining of mineral, oil or gas] of the Finance Act, 1994 does not include services provided by the Members of the respondent - Indian National Shipowners Association.

BAS or BSS - Notice should be sure of Classification - Commissioner (Appeals) should not have confirmed order of lower Authority which he termed as Weird: CESTAT
BANGALORE, JAN 11, 2011: THIS appeal filed by M/s. United Telecoms Ltd. (UTL), Hyderabad challenges an order of the Commissioner (Appeals) who sustained demand of service tax confirmed against UTL to the tune of Rs.15,68,451 /- found due from them for providing services classifiable under "Business Auxiliary Services"(BAS) during the period November, 2007 to September, 2008. The interest demanded on the tax amount confirmed is also sustained.

Expenses reimbursed cannot be excluded from gross value of taxable service: CESTAT
NEW DELHI , JAN 07, 2011: REVENUE , being aggrieved by the order passed by the Commissioner (A) holding that the expenses reimbursed by the respondent shall not from part of gross value of taxable service, is in appeal before Tribunal.

Providing technology application system for e-seva for payment of utility bills - Department not sure of classification of service - no tax liability: CESTAT
NEW DELHI, JAN 06, 2011: E- SEVA
is a service project of the Andhra Pradesh Government, establishing a single window where you can pay utility bills like Electricity, water, telephone, property tax etc ,. The Service Tax Department wanted to tax this activity, but had no clue as to which service it would fall under.

A Del Credere agent can not be treated as a Clearing and Forwarding Agent: CESTAT
CHENNAI, JAN 2, 2011: CESTAT, Chennai Bench has re-confirmed recently that a Del Credere agent can not be treated as a Clearing and Forwarding agent liable to pay Service Tax. In the instant case the CESTAT relied upon earlier decision of the Karnatak High Court to reject the appeal of the revenue against the order of the Commissioner (Appeals) and quashed the Service Tax demand and penalty against M/s. Newton Plastic Inc.

Security Agency Service - defiant attitude of appelalant - Appeal of Trig Detective Pvt. Ltd. dismissed for failure to pre-deposit Rs. 3 Crores: CESTAT
MUMBAI, DEC 31, 2010: THE
appellants are engaged in providing Security Agency Services and are liable to pay Service Tax w.e.f. 16.10.1998. The Revenue officers found on investigation that the appellants had not paid full amount of Service Tax on security charges collected by them...

Saga of Service Tax on software not entirely over
NEW DELHI, DEC 29, 2010: INITIAL
reactions to Government's Service Tax exemption to packaged or canned software for retail sale range from euphoria to utter confusion...

Duty with interest paid before adjudication - Penalty to be 25% : High Court
CHANDIGARH, DEC 27, 2010: THIS
appeal is by the revenue on the substantial question of law: "Whether penalty imposed under section 78(1) of Finance Act, 1994 can be reduced to 25% by invoking the provisions of First Proviso to Section 78(1) when the assessee has not paid 25% of the penalty amount wihtin 30 days of the order as required under the second proviso to Section 78(1) ibid."

BAS - Display of logo of Sahara, which sells houses, is not BAS; Failure of the department to prove charge can neither shift burden nor give any advantage to Revenue: CESTAT
NEW DELHI, DEC 27, 2010: SAHARA
Airlines were to give extensive publicity to the Housing projects of Sahara Corporation and Service Tax Department demanded about Rs.128 crores plus an equal penalty for non-payment of Service Tax thereon.

Renting of immovable property - Stay to continue - High Court to wait for disposal of SLP against Home Solutions case by Supreme Court
CHANDIGARH, DEC 24, 2010: IN
this batch of writ petitions, the basic prayer is to declare Section 65(90a) read with Section 65(105)(zzzz) of the Finance Act, 1994 and Finance Act, 2010 as ultra vires the Constitution of India.

Construction of Complex - deemed service under Explanation to Section 65(zzzh) - validity uphled: High Court
CHANDIGARH, DEC 23, 2010: THIS
petition seeks declaration that Explanation to Section 65(zzzh) of the Finance Act, 1994 and CBEC Circular No.334/3/2010-TRU dated 1.7.2010 are unconstitutional.

Deputation of trained software personnel - Manpower supply or Software development - just because assessee is registered under a service for latter period, it cannot be presumed that they were providing same service for previous period - Pre-deposit ordered: CESTAT
BANGALORE, DEC 22, 2010: THIS
is an application filed in an appeal against the order passed by the Commissioner of Central Excise, Bangalore...

BAS - Export of Services - Marketing and Sales Promotion for foreign company in India is export - no tax - pre-deposit waived - Maintenance or Repair done in India for foreign company, not export - pre-deposit ordered: CESTAT
BANGALORE, DEC 21, 2010: THESE
are stay applications. Vide the impugned order, the Commissioner found that FIPL had rendered services classifiable under the category 'Business Auxiliary Services' (BAS for short) and 'Maintenance or Repair Services' (MRS for short) during the respective material period mentioned...

Export - Refund - fact that service provider was registered under different category cannot be made a basis for denial of refund: CESTAT
AHMEDABAD, DEC 20, 2010: THE
respondent-assessee is engaged in the manufacture of Bulk Drugs and Fine Chemicals. They have filed a refund claim on 10.11.2008 for refund of Service Tax of Rs.83,165/- paid during the quarter 01.07.2008 to 30.09.2008 to Goods Transport Agency, Port Services and Customs House Agent services....

Summons - No interference by High Court - When Act itself is a self-contained Code providing for hierarchy of appeals, it is unnecessary to entertain writ petitions at stage of summons: High Court
CHENNAI, DEC 18, 2010: THE
petitioners challenge the summons issued by the Central Excise Department under Section 14 of the Central Excise Act, 1944. The ground raised was that the summons was totally without jurisdiciton...

Purchase and sale of time slots, not advertising service - extended period only when there is deliberate suppression: CESTAT
AHMEDABAD, DEC 15, 2010: APPELLANT
is engaged in the purchase and sale f time slots from electronic media channels to various advertising agencies on commission basis. The registraiton obtained by them from Service Tax Department was subsequently surrendered...

Maintenance and repair of pumps after clearance from factory - Not input service for manufacturer - Pre-deposit ordered: CESTAT
MUMBAI, DEC 13, 2010: THIS
application filed by the applicant seeks waiver of pre-deposit and stay of recovery in respect of the amount of duty...

Commercial training or coaching - Computer training was not exempted during period 10th Sept. 2004 to 15th June: Supreme Court
NEW DELHI, DEC 10, 2010: In
this case before the Supreme Court, the issue related to three Service Tax Notifications related to services provided in relation to commercial training or coaching and the related confusion.

Maintenance and Repair of Software - taxable only from 16.05.2008, when IT Software Service was introduced - settled law that a new taxable service will not attract levy of Service tax under any pre-existing entry: CESTAT
BANGALORE, DEC 07, 2010: THIS
appeal filed by the assesee is directed against the Commissioner's order confirming demands of Service Tax...

Renting of immovable property - Levy of Service Tax and retrospective amendment upheld: High Court
CHANDIGARH, NOV 30, 2010: THIS
petition seeks declaration of provisions of Section 65(90a) and Section 65(105)(zzzz) - renting of immovable property] of the Finance Act, 1994 as ultra vires the Constitution...

Mobile phone services - Cenvat credit cannot be denied on ground that it is a perquisite given to employees as fringe benefit - once adjudicating authority has held that credit is admissible and the portion of order has not been appealed against, the order becomes final : CESTAT:
MUMBAI, NOV 25, 2010: A look at this case and one will be forced to agree that tht Revenue authorities have an uncanny ability to come up with innovative ideas to deny Cenvat credit inspite of the fact that the issue has been amply clarified by the CBEC in its Master Circular 97/8/2007-ST dated 23.08.2007...

Credit of Service Tax paid under supplementary invoices – Prima facie view is that appellant is required to make pre-deposit of Cenvat Credit and interest pursuant to which matter is to be heard on merits by Commissioner(Appeals): CESTAT
MUMBAI, NOV 18, 2010: THE
appellants are receiving man power services from M/s Dube & Company and M/s Durga Construction. Both the suppliers of these services, at the time of receiving the services by the appellants were unregistered firms.

Appellant paying ST on outward freight and availing credit - Audit contending that such payment was not warranted as cost of each trip was less than Rs 1500 - Cenvat credit reversed and refund claimed – Matter remanded: CESTAT
MUMBAI, NOV 16, 2010: THE
facts of the case are that the appellant is engaged in the manufacture of sugar, molasses etc

Appellant receiving commission without any ST – being honest tax payer he pays ST on sum received – refund claim filed on ground that exemption is available for sum of Rs 8 lakhs – exemption admissible: CESTAT
MUMBAI, NOV 12, 2010: THE facts of the case are that the appellant filed a refund claim of Rs.98,880/- on 21.5.2008 under section 11B of the Central Excise Act, 1944 claiming the refund of service tax paid in excess

CENVAT Credit – ST - input service - extends to all services used in relation to business of manufacturing final product; Outdoor Catering – eligible input service – ratio of Maruti Suzuki applicable, not the decision – definition of input service seeks to cover every conceivable service used in manufacture of final products: Bombay HC
MUMBAI , NOV 08, 2010: ON scrutiny of the CENVAT register, it was noticed by the Excise Authorities that, during the period 2004-08, the assessee had availed credit of service tax paid on outdoor catering services under the provisions of CENVAT Credit Rules, 2004.

Laying of pipelines for transfer of water in State of Gujarat for Gujarat Water Supply and Sewerage Board is not taxable under Commercial or Industrial Construction Service: CESTAT
AHMEDABAD, NOV 03, 2010: THE
appellants are registered with Service Tax department under the category of Goods Transport Agency services

Service Tax - Validity of Service Tax on financial leasing services, upheld - Service Tax is a Value Added Tax which in turn is a destination based consumption tax: SC Larger Bench
NEW DELHI, OCT 29, 2010: APPELLANT
had filed a writ petition under Article 226 of the Constitution before the High Court challenging the levy of service tax imposed by Section 65(12)(a)(i)- financial leasing services including equipment leasing and hire-purchase .

Security service utilized in residential colony situated outside factory premises is not an Input Service: CESTAT
MUMBAI, OCT 29, 2010: THE
appellant has filed this appeal before the CESTAT against the denial of input service credit on security service utilized in residential colony, which is situated outside the factory premises and imposition of penalty.

Security service utilized in residential colony situated outside factory premises is not an Input Service: CESTAT
MUMBAI, OCT 29, 2010: THE
appellant has filed this appeal before the CESTAT against the denial of input service credit on security service utilized in residential colony, which is situated outside the factory premises and imposition of penalty.

No input service is available on telephone installed at residence of executive of appellants - nowhere it is coming out that telephone installed at residence of Executive are being exclusively used for business purpose: CESTAT
MUMBAI, OCT 22, 2010: BRIEF
facts of the case are that the appellants availed the facility of CENVAT credit of the duty paid on the inputs as well as Service tax paid on the services of CHA for clearance of their import and export consignments and telephone installed in the residence of the executive of the appellants firm. These credits were denied by the lower authorities and, therefore, the appellant is before the CESTAT.

ST - Mandap Keeper - Cost of Food supplied cannot be deducted under Notification No 12/2003 - Only abatement under Notification No. 1/2005 can be allowed - Predeposit ordered : CESTAT
NEW DELHI, OCT 21, 2010: THE
appeal and stay applications are against the following consequences arising out of order of adjudication passed on 8.1.2010.

CENVAT Credit – Service Tax on services of repair, maintenance and Civil constructions used in residential colony - not admissible: HC
MUMBAI, OCT 21, 2010: IN a major jolt to the assessees, the Bombay High Court delivered a judgement which has far reaching consequences and is likely to upset many a judgement of the CESTAT.

ST - vivisection of contract - Writ petition by intervener against CESTAT LB - Clarification on 46th Amendment to Constitution - High Court in writ proceedings does not clarify a provision in vacuum - No writ on a reference matter: Delhi HC
NEW DELHI, OCT 20, 2010: BY
this writ petition under Articles 226 and 227 of the Constitution of India, petitioner has prayed for issue of writ of certiorari for quashing the miscellaneous order ST/41/10 dated 6th May, 2010 ( 2010-TIOL-646-CESTAT-DEL-LB ) passed by the Larger Bench of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi and to clarify the 46th Constitution Amendment to the extent it has no relevance for imposition of service tax

Service Tax - Export - Filing of declaration only procedural - substantial benefit cannot be denied - Tribunal's order upheld - Revenue appeal dismissed: High Court
CHANDIGARH, OCT 19, 2010: THIS
appeal is by the revenue against order dated 18.5.2009 [ 2009-TIOL-888-CESTAT-DEL ] , with the following substantial questions of law:-

ST - Service of encryption and compilation of data pertaining to clients and provision of details thereof on telephone to prospective customers of clients is 'call centre service' and exempted from ST till 28.02.2006 - Revenue appeals devoid of merits: CESTAT
AHMEDABAD , OCT 18, 2010: THE
assessees were engaged in provision of services of encryption and compilation of data pertaining to their various clients in their computer system and providing details thereof to callers enquiring for the same on telephones

CENVAT Credit - Availment of credit on input services used for both dutiable and exempted final products - Amount of actual credit reversed subsequently covered by retrospective amendment of Rule 6 of CCRs, 2004 - Penalty set aside but interest liable to be paid: CESTAT
BANGALORE, OCT 16, 2010: IN
this interesting case before CESTAT, the issue involved was regarding the payment of 10% of the amount of the value of exempted goods manufactured and cleared from the factory premises.

Service Tax - Denial of CENVAT Credit - principles of natural justice - copies of relied upon documents to be provided; procedural irregularity to be ignored; Original invoices available - but not verified - matter remanded: CESTAT
NEW DELHI, OCT 13, 2010: THE
appellants are engaged in providing telecommunication services. During scrutiny of the records of the appellants for the period from October, 2006 to September, 2007, it was revealed to the department that the appellants had availed CENVAT credit of service tax without complying with the requirement of statutory provisions and therefore a show cause notice dated 21.4.2008 came to be issued requiring the appellants to show cause as to why CENVAT credit amounting to Rs.5,61,27,973 /- should not be held to have been wrongly availed and therefore should not be demanded under Rule 14 of CENVAT Credit Rules, 2004 read with Section 73 of Finance Act, 1994 and Section 11A of Central Excise Act, 1944 along with interest and penalty. By the impugned order, the Commissioner disallowed the CENVAT credit amounting to Rs.1 ,72,66,973 /- and ordered recovery thereof along with interest and equal amount of penalty.

MSRTC allowing some of buses to be hired by agencies for conducting tours in connection with picnic and marriage – Revenue has no case that buses given to pvt agencies were covered by any such permit granted under MVA – MSRTC, prima facie, not required to get registered as 'Tour Operator': CESTAT
MUMBAI, OCT 12, 2010 : A demand of Service Tax was confirmed against Maharashtra State Road Transport Corporation in respect of contract carriages plying between cities in Maharashtra State and cities in other States. On appeal, the Commissioner (Appeals) set aside the Order-in-Original on the ground that the respondents are not required to have any licence for running buses and their buses do not conform to the definition of Tourist Vehicle in terms of Section 2(43) of the Motor Vehicles Act read with Rule 128 of the Central Motor Vehicles Rules

In terms of agreement entered into with Bank Institute, appellant only to prepare and serve food in canteen - Activity not taxable under 'Outdoor Catering Service' however, appellant paying tax and interest - Penalty u/s 78 not imposable: CESTAT
MUMBAI, OCT 11, 2010: THE
appellants are providing canteen service to National Institute of Bank Management in terms of an agreement entered into by them and which lays down that the Institute has to provide water, electricity, kitchen equipment, crockery-cutlery, furniture, cooking gas/fuel etc. and the appellants are only to prepare food and serve them.

Repair and maintenance of Software – since Board's Circular was withdrawn only on 10.05.2007, maintenance of Software is not chargeable to Service Tax till 9.5.2007 – Prima facie case in favour – Pre-deposit waived and stay granted: CESTAT
MUMBAI, OCT 11, 2010: THE
applicant filed an application for waiver of pre-deposit of adjudged dues of service tax of Rs.5,63,333/-, interest and penalty.

ST - Transport of Goods through pipeline – not taxable prior to 16.06.2005 - Tax cannot be confirmed on basis of 'ifs and buts': CESTAT
AHMEDABAD, OCT 07, 2010: THE
appellant M/s Gujarat State Petronet Ltd. (GSPL) is a subsidiary of M/s Gujarat State Petroleum Corporation (GSPC), who had taken lead in developing Energy Transportation Infrastructure in Gujarat and in connecting major natural gas supply sources an demand markets.

Service Tax - GTA - Who should pay tax - consignor or consignee? - Depends on who engaged transporter and who is liable to pay freight: CESTAT
NEW DELHI, OCT 06, 2010: 15
appeals involving a common issue are decided in this case.

Central Excise - CENVAT Credit on service tax paid on mobile phones - entitled: High Court
MUMBAI, OCT 05, 2010: THIS is a strange case in which the Assistant Commissioner, Commissioner (A) and the Tribunal held that CENVAT Credit is to be allowed on the service tax paid on mobile phones. But a persistent Revenue is in appeal a third time, now in the High Court.

It's Service Tax on GTO again - Gujarat High Court in successive judgements upholds Tribunal's orders on time bar
AHMEDABAD, OCT 01, 2010: IT
was only on 14 th September 2010 we carried the Larger Bench decision on the issue whether the Show Cause Notices issued in 2004 for recovery of service tax on transportation of goods by road pertaining to the period from 16.11.1997 to 1.6.1998 were hit by time bar.

Service Tax – Maintenance and Repair of Roads – Exemption from 27.7.2009 is only prospective: Madras HC
CHENNAI, OCT 01, 2010: THE common issue raised in these writ petitions is, whether the road management, maintenance or repair services carried on by the petitioners, who are contractors, are liable to pay service tax from 16.6.2005 to 26.7.2009, when the Government of India in its notification No.24/2009 Service Tax, dated 27.7.2009 has granted exemption from the service tax levy to all persons, who are doing management, maintenance or repair of roads

Incidence of levy is on occurrence of event i.e provision of service and event has already occurred before commencement of commercial production on 1.3.1996 - no evidence on record to show that Consulting Engineering Service was provided after 1.3.1996 and also continued after 7.7.97: CESTAT
MUMBAI, SEPT 27, 2010: THE
appellant's grievance in this case is that the entire technology was provided before the commencement of the commercial production i.e 1.3.1996 and hence it could not be converted into ‘Consulting Engineering Services'.

In definition of 'Input Service' in CCRs, 2004, nowhere it is mentioned that input service credit is not available for service utilized outside factory premises - Repair and maintenance service used for running Water pump situated at bank of Wardha river is an Input Service: CESTAT
MUMBAI, SEPT 23, 2010: THE
respondent is engaged in the manufacture of cement.

Commercial Training - Expln added by Finance Act, 2010 with retrospective effect clarifies that term 'commercial' appearing irrelevant - definition only means that such training being provided for consideration whether or not it is conducted with profit motive: CESTAT MUMBAI, SEPT 22, 2010: THE appellant is a society registered under the Societies Registration Act, 1860 and is also registered under Bombay Public Trusts Act 1962. The society runs numerous educational institutions, 21 of which were taken note of by the Department in the proceedings

Service Tax - Stock Brokers - If main broker has paid service tax - sub brokers need not pay: CESTAT Larger Bench
NEW DELHI, SEPT 21, 2010: THE issue is before the Larger Bench on a direction from the Punjab and Haryana High Court

ST - adjudicating authority dropped demand against which Revenue filed appeal before Commr (A) - realising folly, appeal was withdrawn and revisionary proceedings resorted whereby Commissioner confirmed demand - Prima facie case for grant of stay: CESTAT
MUMBAI, SEPT 16, 2010: THIS
is a Service Tax case (Business Auxiliary Service).

Notification 41/2007-ST - While granting refund to exporters on taxable services that he receives and uses for export it is not necessary to conduct verification of registration certificate: CESTAT
MUMBAI, SEPT 15, 2010: AN appeal was filed by CBay Systems (India) Pvt. Ltd. against the denial of their refund claim by the lower authorities on the ground that the supplier of service was not registered under the category of “Business Auxiliary Service”.

GTA service is in news again – Larger Bench rules SCN issued in 2004 for recovery of service tax pertaining to period 16.11.1997 to 1.6.1998 is valid – Tax payers cannot take arguments like ‘Heads I win, tails you lose' to deprive exchequer of its dues
NEW DELHI, SEPT 14, 2010: IF
a tax department is hell bent on collecting a tax, perhaps nothing on earth can stop it.

Service Tax - While ignorance of Law is no excuse, for penalty, presence of reasonable cause would be germane: High Court
CHENNAI, SEPT 09, 2010: THE substantial question of law in this appeal:

Respondents have entered into tripartite agreement with Bank and farmers under statutory obligation on them and amount which they have received is only handling charges or administrative expenses - Activity not covered under category of BAS - Revenue appeal dismissed: CESTAT
MUMBAI, SEPT 08, 2010: THE
facts of the case are that during the verification of the respondents Trial Balance, it was noticed that respondents have received certain sum from the Bank on the account of recoveries made on their behalf from the farmers against the sugar cane supplied to them

Software is goods; whether transaction would amount to sale or service would depend upon individual transaction; Parliament has legislative competency to enact law in respect of tax on service: Madras HC
CHENNAI, SEPT 07, 2010: BOTH
the writ petitions raise an important question as to whether a software would amount to goods and if so, when it is supplied to a customer pursuant to the "End User Licence Agreement" (EULA), the transaction is liable to be treated as sale or service and whether the Parliament has the legislative competency to bring in the amended provisions of Section 65(105)(zzzze) by virtue of the powers under Entry 97 of List I of Schedule VII of the Constitution of India

Service Tax - Construction of Driveway in Petrol Pump - If contract recognizes two activities as separate activities, even though construction of road is in connection with complex, benefit of exclusion of road has to be allowed: CESTAT
AHMEDABAD, SEPT 01, 2010: THE facts of the case, are that the respondents are in the business of providing services under the category of "Commercial and Industrial Construction".

Prime condition for benefit of Notification 12/2003-ST is that value of such goods used in course of job-work to service recipient should be separately disclosed in relevant invoice - condition not fulfilled by appellant and, therefore, benefit is prima facie inadmissible - Pre-deposit ordered: CESTAT
MUMBAI, AUG 30, 2010: THE
assessee was undertaking job-work of rebuilding of old worn-out rollers, liners, tyres and old worn-out components of cement plants, steel plants etc

Service Tax – Consulting Engineer Service by Foreign Service Provider – not taxable prior to 18.4.2006: High Court
BANGALORE, AUG 25, 2010: THIS
appeal is filed by the revenue challenging the Order of the CESTAT, by raising the following substantial questions of law:-

Service Tax – Second SCN alleging suppression - CESTAT required to pass reasoned order – Approach of Tribunal very cursory – Matter remanded: High Court
BANGALORE, AUG 16, 2010: THE facts leading to filing of this appeal are that initially, a show cause notice dated 4.7.2001 was issued by the Assistant-Commissioner of Central Excise to the respondent-assessee which was adjudicated upon and an order came to be passed on 6.5.2002, by which the demand made in the show cause notice for a sum of Rs.5,43,092/- was confirmed with regard to the service tax for the period October 1998 to March 2001 and interest of Rs.2,26,689/- was also confirmed by virtue of Section 75 of the Finance Act 1994, and for the delayed payment of service tax. However, imposition of penalty under Sections 76-77 was dropped

Service Tax - Airport Service - Royalty charges for space, advertising, garbage disposal, income from entry charges, not liable to service tax: CESTAT
BANGALORE, AUG 11, 2010: M/S Cochin International Airport Ltd, (CIAL for short) are providers of various categories of services to the Air Passengers and are duly registered with the Central Excise Department in relation to services such as Storage & Warehousing, Cargo Handling, Tour Operator and Airport Service and are paying Service Tax at the appropriate rate and are also filing the ST-3 Returns for the respective periods in time

Service Tax – Revenue files appeal in ST-7 against manufacturer taking CENVAT Credit – Appeal should have been filed under Central Excise – Non-existent Commissioner in Committee of Commissioners – Appeal not maintainable: CESTAT
AHMEDABAD, AUG 10, 2010: STRANGE are the ways of revenue. The respondent, a manufacturer had taken credit of service tax on outward transport of goods

Automobile dealer providing table space in his premises to banks to set up financial assistance counters cannot be said to be promoting business of bank so as to be charged to Service Tax under BAS – Demand set aside: CESTAT
MUMBAI, AUG 09, 2010: IT so happened that one fine day after getting the Sixty Pay Commission arrears an officer from the Central Excise department made a visit to an authorized dealer of four wheeler manufacturer

Service Tax – Storage and warehousing - Buffer subsidy received by Sugar Factory for storage of Sugar as per Government directive – No Service – No Tax: High Court
CHANDIGARH, AUG 06, 2010: THE
ingenuity of the Revenue Department is mind-blowing as this case would show.

In view of fact that demand is confirmed under CCRs there is no merit in contention of Appellant that the provisions of Sec 85 of Finance Act, 1994 come into play and delay upto 3 months in filing appeal can be condoned by Commr(A) – Appeal filed in ST-4 form of no consequence - appeal dismissed: CESTAT
KOLKATA, AUG 05, 2010: IN
this case, the appellant was issued a demand notice seeking to deny Cenvat Credit by invoking the CCR, 2004 as well as the provisions of section 73 of the Finance Act, 1994

Service tax can be levied on service portion involved in execution of a works contract only after 1/6/2007 and not prior to 1/6/2007 - SC's dismissal of departmental SLP in Daelim case is upon appreciation of merits of Tribunal's decision and hence is a binding precedent: CESTAT by Majority
MUMBAI, AUG 04, 2010: A quick recap in academic interest: The brief facts of the case are that the respondents who are engaged in providing taxable services of storage and warehousing, port services and consulting engineering services, filed a claim for refund of Rs.11,27,498/- under the head "Commissioning and Installation" for the months of September and October, 2003

Service Tax - Towers and pre-fabricated buildings – prima facie not capital goods or inputs - Stay orders are not precedence – pre-deposit ordered: CESTAT
NEW DELHI, AUG 02, 2010: THE question is whether the Cenvat Credit is admissible on tower and parts thereof as well as pre-fabricated buildings and antenna.

Pune District Security Guards Board constituted under Maharashtra Private Security Guards (Regulation of Employment & Welfare) Act, 1981 is prima facie not coming within definition of 'security agency' inasmuch as it does not appear to be a commercial concern - Stay granted: CESTAT
MUMBAI, JULY 30, 2010: DURING the year 1980-81, the Maharashtra Rajya Suraksha Rakshak and General Kamgar Union had represented to Government that about 70,000 persons are working as Security Guards in various Factories and Establishments in Greater Bombay and Thane District

Refund of ST – Notfn 41/2007-ST – bill raised by service provider indicated that tax was paid by another service provider – when fact remains that assessee had borne service tax, refund cannot be denied: CESTAT
MUMBAI, JULY 29, 2010: THE respondents filed a refund claim of service tax claiming the benefit of exemption Notification no. 41/2007-ST dated 6.10.2007. The respondents claimed the refund on the strength of bill raised by the service provider indicating service tax amount claimed by the service provider from the respondent whereas the service tax was actually paid by some other party

Cenvat Credit on Garden Maintenance Service - Revenue's request for constituting a Larger Bench totally irrelevant as contrary judgments referred to are ones pertaining to same appeals of assessee and which orders have been remanded by High Court: CESTAT
MUMBAI, JULY 28, 2010: THE issue is whether'Garden Maintenance Service' is an input service as per rule 2(1) of the Cenvat Credit Rules, 2004.

Service Tax or VAT – Providing food in trains is pure sale of goods; constitutional right of State Govt to levy VAT cannot be denied just because Centre has collected ST – Refund of Service Tax can be claimed: Delhi HC
NEW DELHI, JULY 27, 2010: THIS is a VAT case, which held that Service Tax is not leviable on food supplied in the trains under outdoor catering service.

New clause w.e.f 10.09.2004 defining 'Business Auxiliary Service' is couched in entirely different language within which appellant squarely fell and hence started paying tax – Prior to amendment, Revenue has no case: CESTAT
MUMBAI, JULY 22, 2010: UNDER a contract entered into with the Income Tax department, UTI Technology Services Ltd., a Central PSU , undertook the process of allotment of PAN to Income Tax assessees. Accordingly, the appellant was required to

Service Tax – SCN mandatory before demand – Letter directing payment is an appealable order: High Court
BANGALORE, JULY 21, 2010 : TH
E assessee sought a clarification whether service tax was liable

Service Tax – Prior to amendment in 2006 Companies were not included under definition of consulting engineer - Works Contract only from 1.6.2007: High Court
BANGALORE, JUNE 20, 2010: THE revenue has come up in this appeal being aggrieved by the order of the CESTAT in Order-in-Appeal No. 59/2004-ST in Final Order No. 1068/06, dated 15-6-2006 -raising the following substantial questions of law

Service tax - Spot recovery – Department has no jurisdiction or authority to collect any amount at time of raid : High Court
KOLKATA, JULY 19, 2010: THE petitioner is carrying on business activities and coordinating supervisions and liasioning in the process of supply of coal from collieries to its customers under various agreements. Therefore, the petitioner is a service provider within the meaning of Finance Act, 1994

Service Tax – Photography - service tax is not leviable on sale portion: High Court
CHANDIGARH , JULY 18, 2010: THE revenue is in Appeal against the impugned order dated 25.11.2008 - of the Customs, Excise & Service Tax Appellate Tribunal.

Service Tax – Courier Service – Franchisee not liable to pay tax again when courier agency has paid tax on gross amount charged: High Court
KERALA, JULY 17, 2010: THE appellant is engaged in rendering courier service which involves collection of letters, parcels, articles etc from customers and then delivery of the same to the addressees

Service Tax - Passing of revision order by jurisdictional Commissioner after passage of Order-in-Appeal by Commissioner(A) – embarrassing to declare exercise of jurisdiction by one Commissioner as good and another bad – Revisionary order bad in law: CESTAT
NEW DELHI, JULY 13, 2010: IN a Service Tax matter, the first appellate authority passed an order on 16.04.2009 and since it was favourable to the assessee, they did not file any appeal before the CESTAT

Matter to be resolved after Karnataka HC decision: CESTAT
CHENNAI, JULY 06, 2010: ASSESSEE –manufacturer availed Cenvat credit on service tax paid on freight incurred on sale of liquid Nitrogen and liquid Oxygen.

Service Tax - Notifications are not assessee specific - Each and every service of commercial or industrial construction provided by assessee has to be examined for purpose of extending facility in terms of Notfn No 15/2004-ST, 01/2006-ST – Stay granted: CESTAT
MUMBAI, JULY 05, 2010: THE
appellant seeks waiver of pre-deposit and stay of recovery in respect of service tax amounting to over Rs.26.8 crores demanded for the period October 2005 to March 2008 and also in respect of various amounts of penalties imposed under various provisions of the Finance Act, 1994

Revenue has no cogent evidence to contradict findings of appellate authority – Appeals dismissed: CESTAT
MUMBAI, JULY 04, 2010: THE CESTAT penned only three sentences to dismiss the Revenue appeals filed in this Service Tax case.

Central Excise and ST - Outdoor Catering Service, not input service, not eligible for credit – When biscuits are not eligible for credit, how can activity of supplying biscuits be eligible?: CESTAT
CHENNAI, JULY 02, 2010: LAW is being rewritten in Chennai CESTAT. The very foundation of CENVAT Credit on input services has been shaken up. In a combined order covering thirteen appeals, the CESTAT single Member over-ruled the Larger Bench decision and held that Cenvat Credit cannot be allowed on catering service

Service Tax – Consulting Engineer - a duty is cast on Tribunal to consider grounds urged by parties and same has to be adjudicated: High Court
BANGALORE, JULY 02, 2010: THE
respondent is engaged in the services imparting training to their customers in operating the machines namely Distribution Control System manufactured and sold by them

Service Tax – BAS – Promoting real estate business in air – Jetlite directed to pre-deposit Rs 100 Crores - Law is well settled that levy and collection of tax is regulated by law and not by contract: CESTAT
NEW DELHI , JULY 01, 2010: REAL estate business promotion in the air, but tax down on Earth. The former Sahara Airlines were to give extensive publicity to the Housing projects of Sahara Housing and got paid. The Service Tax Department has demanded about 129 Crores with an equal penalty

Service Tax – Foreign Consulting Engineer providing service to Indian recipient – Not taxable prior to 18.4.2006: High Court
BANGALORE, JUNE 30, 2010: REVENUE is in appeal challenging the CESTAT Final Order No.1061 to 1063/06 dated 15.6.2006, with the following substantial question of law:

Service Tax – Definition of C&F Agent includes Consignment agent: High Court
BANGALORE, JUNE 29, 2010: THE
CESTAT has granted relief to the respondent-assessee by relying upon the judgment of the tribunal rendered in Mahavir Generics case

Service Tax - laying the pipe in wall, roof and floor for crossing of wires, fixing junction box would not amount to commissioning, installation of plant, machinery and equipment: High Court
CHANDIGARH, JUNE 28, 2010: THE respondent-assessee M/s Rajeev Electrical Works (for short "the assessee") (electrical contractor) was engaged in electrical fittings and registered on 30.11.2004 for providing erection, commissioning and installation services

Service Tax - Providing a hired vehicle to IOC – amounts to 'rent a cab' service - High Court
CHANDIGARH, JUNE 27, 2010: THE respondent-firm M/s Kuldeep Singh Gill was dealing in transport business

Supply of skilled personnel to execute task orders for Infosys and TCS is taxable under 'Manpower recruitment or supply agency' service – CESTAT upholds demand of service tax
CHENNAI, JUNE 25, 2010: WHAT
is the pre-requisite for relying on a case law while arguing your case? It should have been delivered at least a day before your case is heard. You can't really help if the case law to be relied is pronounced on the same day of hearing of your case by the same Bench.

ST- Paid and later exemption claimed under SSI notification 6/2005 (ST) – no cause of refund in view of clause 2(i) of notification: CESTAT
MUMBAI, JUNE 21, 2010: THE
appellant is providing the service of Chartered Accountant and is registered since the year 2004

Service Tax – Penalty – Section 80 – Is bona fide belief consideration for setting aside penalty - Tribunal has not assigned any reason – matter remanded: High Court
BANGALORE, JUNE 23, 2010: A show-cause notice was issued to the respondent by the department by contending that the respondent is a service provider coming under the category of "Mantap Keeper" and for the period from 1.2.1998 to 30.6.2002, there was no payment of service tax under tax category of Mantap Keeper

Service Tax - Tribunal cannot apply a different yardstick for same matter: High Court
CHENNAI, JUNE 18, 2010: TRIBUNAL
ordered pre-deposit in a matter relating to applicability of Service Tax for ‘Works Contract Services' rendered prior to June 1, 2007

Appellant canvassed purchase orders from prospective Indian buyers for goods supplied by non-resident - commission paid to appellant in convertible foreign exchange - benefit of service provided accrued to foreign companies outside India – Rebate admissible: CESTAT
MUMBAI, JUNE 18, 2010: THE appellant had procured purchase orders in India for suppliers of goods located abroad and transmitted the same by courier or electronic means to the said suppliers

Laying of pipelines for drinking water supply projects run by Gujarat Water Supply and Sewerage Board, not leviable to tax under either Commercial or Industrial Construction Service or Works Contract Service: CESTAT
BANGALORE, JUNE 15, 2010: THE
appellant, M/s. Nagarjuna Constructions Company Ltd., Hyderabad executed laying of long distance pipelines in the State of Gujarat under a contract awarded to them by M/s. Gujarat Water Supply and Sewerage Board (‘GWSSB').

Activity of cutting of sugarcanes and its transportation up to sugar factory is not services of 'C&F Agents' - second SCN for same period issued seeking service tax under GTO - SCN barred by limitation - Demand set aside: CESTAT
MUMBAI, JUNE14, 2010: THE
appellants are a co-operative society of farmers found to provide services of cutting sugarcane and transporting the same up-to the sugar factory.  The appellants had to act in terms of the contract with the sugar factory under an agreement

Incorporation of additional grounds in appeal memo challenging taxability of appellant's activity – appellant accepted and paid liability and contested only penal liability before adjudicating authority - since no such issue taken before lower authority, it is to be considered as an afterthought – Application rejected: CESTAT
MUMBAI, JUNE 11, 2010: PURSUANT to a case booked by the Revenue, the appellant voluntarily paid service tax with interest.  However, the show-cause notice and adjudication proceedings  at the hands of the Commissioner of Central Excise, Customs and Service Tax, Aurangabad led to the appellant being saddled with penalties under sections 77 and 78 of the Finance Act, 1994.

Works Contract – Benefit of composition scheme not available for ongoing projects on which ST was paid prior to 01.06.2007 under respective services: High Court
ANDHRA PRADESH, JUNE 11, 2010: THE
petitioner is a service provider, an assessee on the file of the Commissioner of Customs and Central Excise, Hyderabad-II Commissionorate.   It carries on the business of execution of civil works including construction of buildings (residential and commercial), roads, bridges, dams, electrical installations etc., throughout the country

Merely because appellant is registered with PF department does not imply that they were 'Security Agency Service' and leviable to Service Tax – Department has failed to ascertain from customers as to what service was received by them - Demand cannot be justified: CESTAT
AHMEDABAD, JUNE 10, 2010: KARNA is one of the central characters in the epic Mahabharata from ancient India. He was the King of  Anga . Karna is considered to be one of the greatest warrior of Mahabharata by authorities including   Krishna and Bheeshma.

Tax paid by Indian recipient of Foreign Service – Credit as input service entitled – Stay granted: CESTAT
NEW DELHI, JUNE 09, 2010: THE
appellant are engaged in the manufacture of steel castings chargeable to Central Excise Duty under Chapter heading 761699.90 of the Central Excise Tariff

Trading activity is not exempted service - there is no provision in CCRs, 2004 to cover such situations - only obvious solution is to ensure that once in a quarter, quantum of credit attributed to trading is deducted: CESTAT
AHMEDABAD, JUNE 07, 2010: RULE 6
of the Cenvat Credit Rules, 2004 never fails to enthuse.

Removal of inputs to job worker without reversal of SAD credit availed – amount later reversed – no cause for imposition of any interest as there is no intention to evade duty and fact that credit had not been utilized: CESTAT
MUMBAI, MAY 13, 2010: THE
appellant, a manufacturer of colour television sets (CTVs) imports various electronic components for this purpose. On import of these inputs, the appellants pay duties of Customs including CVD and SAD leviable under sec. 3 of the Customs Tariff Act, 1975 and takes CENVAT credit .

Excise - Section 4A – exemption under rule 34(b) of SWAM Rules, 1977 - Conditions for 'wholesale package' laid down under clause (x) of Rule 2 have to be independently considered and not in conjunction – Goods rightly assessed under Section 4: CESTAT
MUMBAI, MAY 13 2010: THIS
was the instruction contained in the Board Circular No. 625/16/2002-CX., dated 28-2-2002 which the Revenue officers conveniently choose to ignore, all in the name of mopping up extra revenue -

Service Tax – Composite Contracts - Turnkey contracts can be vivisected – Daelim overruled: CESTAT Larger Bench
NEW DELHI, MAY 13, 2010: THE
moot question before the larger Bench was "whether turnkey contract can be vivisected".

Concept of provisional assessment and its finalization is not applicable to MRP-based assessment: CESTAT
MUMBAI, MAY 13, 2010: THE
appellant was manufacturing Colour Television Sets (CTV sets) (SH 8528.90). Prior to 16.9.1997, they were paying duty on CTV in terms of section 4 of the Central Excise Act.  After the goods were notified under Section 4A of the CEA, 1944, they switched over to MRP based assessment.

Notfn 6/2002-CE - Appellant mounting tank over chassis and claiming exemption - Whether chassis is different from a 'running gear' - stand taken by Revenue is neither logical nor based on any literature concerning motor vehicle industry – Duty correctly discharged - Appeals allowed: CESTAT
MUMBAI, MAY 13, 2010: THE assessee is engaged in the activity of building body on chassis supplied by motor vehicle manufacturers. They paid duty on their products, which were cleared to the chassis suppliers, at the effective rate specified under the relevant notifications, viz., No.4/97-CE, 5/98-CE, 5/99-CE, 6/00-CE, 3/01-CE and 6/02-CE .

If goods were to be seized instead of sales proceeds, officer adjudging confiscation would have given an option to pay fine in lieu of confiscation - An option, therefore, has to be given to pay fine in lieu of confiscation of sales proceeds: CESTAT
MUMBAI, MAY 12, 2010: THIS
is an interesting case booked more than two decades ago. Nothing much has changed over the years, if the investigation standards are to be mentioned about.

Respondent providing 'Auctioneering Service' but made to register under 'BAS' and pay Service Tax – Auctioneering service notified only w.e.f 01.05.2006 – it cannot be treated as part of any pre-existing service – refund allowed: CESTAT
MUMBAI, MAY 12, 2010: THIS
is a Revenue appeal against the order of Commissioner(A) allowing the refund claim filed by the respondent.

Gold plating of imitation jewellery does not constitute an exigible process of manufacture – ROM application to correct word 'appellant' by 'respondent' allowed: CESTAT
MUMBAI, MAY 12, 2010: M/s
Midas Techniques Pvt. Ltd. is doing the job work of gold plating on imitation jewellery supplied by the manufacturers of jewellery. Revenue took a view that this activity is manufacture u/s 2(f) of the Central Excise Act, 1944 and chargeable to Central Excise duty. Fortunately for the company the Appellate authority agreed with their contention that jewellery remains jewellery and no new product comes into existence by the process of gold plating which is for ornamentation of jewellery.

Major victory for Revenue - CESTAT LB holds Explanation 2 to Rule 2(l) of CCRs, 2004 is clarificatory in nature - Credit not eligible on cement, angles, channels and TMT used for construction of factory shed, laying of foundation or making of structures
NEW DELHI, MAY 12, 2010: IN
Vandana Global Ltd vs. CCE, Raipur 2008-TIOL-2327-CESTAT-DEL , while hearing a stay application filed by the assessee, the Division Bench of CESTAT referred the following issues to the President of CESTAT for resolution by a Larger Bench.

Job worker paying Service Tax although entitled for exemption under notification 8/2005-ST – No infirmity in supplier manufacturer taking Cenvat credit of 'Input Service' and clearing final products on payment of duty: CESTAT
MUMBAI, MAY 12, 2010: THE
issue is whether an assessee is entitled to take Cenvat credit of the Service Tax paid by the job worker although the job worker was exempted from paying any Service Tax.

Bereavement in Consultant's family a sufficient cause for condoning delay in filing appeal – COD application allowed and matter remanded to Commissioner(A) with direction to hear appeal on merits: CESTAT
MUMBAI, MAY 12, 2010: M/s
Versatile Systems, one of the appellants, received a copy of the Order-in-original on 5.1.08 and M/s Shrijee Engineering Works received their copy on 10.1.08. The former filed an appeal with the Commissioner(Appeals) on 17.3.2008 and the latter on 8.4.2008.

Security Agency Service - In a company which has huge turnover, it is difficult to believe that no proper accounts are maintained – appellant has no case whatsoever – Pre-deposit of Rs 3 Crore ordered: CESTAT
MUMBAI, MAY 03, 2010: THE appellants are engaged in providing Security Agency's services and are liable to pay Service Tax w.e.f 16.10.1998.

Construction of compound wall is an input service as it is an integral part of factory - compound wall is necessary to run factory as any goods lying outside factory beyond compound wall will be deemed as removed without paying Central Excise duty: CESTAT
MUMBAI, MAY 03, 2010: THE respondents are engaged in manufacturing of cotton fabrics and were availing facility of CENVAT credit of duty paid on ‘input service' as well as on capital goods. They availed credit of Service Tax of Rs.9,78,547/- on the basis of construction of ‘compound wall'.

ST - Sec 76 provides for penalty for default of service tax simpliciter - there is no requirement that assessee should have committed default with intent to evade payment of tax - Sec 73(3) in no manner restrains Revenue from taking penal action: CESTAT
MUMBAI, APR 22, 2010. THE
appellant is engaged in the activity of re-treading of tyres and got themselves registered with the department in the year 2005 under the category of “Maintenance & Repair Service”. During the period from October, 2006 to March, 2007, they committed default of service tax in respect of the transactions for the said period. Later on, they paid the tax with interest on 06.10.2007 and filed a service tax return on 22.01.2008.

ST – Refund of CENVAT Credit on input services to exporters – CESTAT trashes Circular No 120 – Accepts 'consumption mantra' chanted by Revenue - makes consumption of service as pre-requisite for refund - Remands matters to original authority: CESTAT
APRIL 20, 2010: THE Central Government took a historic step in integrating the CENVAT chain of goods and services in the year 2004 with the introduction of CENVAT Credit Rules, 2004 by virtue of exercising its powers under Section 37(2) of the Central Excise Act, 1944 read with Section 94 (2) of the Finance Act, 1994.

Adjudicating authority cannot go beyond allegations made in SCN – Cenvat credit cannot be denied on grounds not alleged in SCN - appellants are providing BPO service and in relation to their business, Rent-a-Cab service and Air Travel Service are input services: CESTAT
MUMBAI, APR 18, 2010: THE
basics of adjudication proceedings are on occasions lost sight of by the lower authorities in their enthusiasm in confirming demands or denying refunds to an assessee.

Service Tax – Contract for execution of lump-sum work of loading, unloading and bagging to be read and interpreted in entirety – Services rendered cannot be classified as manpower recruitment & supply agency service either directly or indirectly, temporary or otherwise: CESTAT
BANGALORE, APR 15, 2010: THE
appellants entered into a contract for rendering services like feeding bags, for filling bulk, stitching, shifting back cargo, stacking, destalking, loading back cargo to the trucks, destalking and loading on trucks for wagon loading and transportation of the goods within the premises of CWC. The Service tax authorities scrutinized the contracts and other relevant documents, investigated the matter in detail and issued show cause notices alleging that the appellants were liable to pay service tax under the taxable service category of ‘manpower recruitment & supply agency' service. The Adjudicating authority held that services provided by appellants were classifiable under the category of ‘manpower recruitment & supply agency' service and confirmed the service tax demand.

Providing facilities of toilet and water are basic requirement to run factory and non-providing these facilities may affect production, hence Housekeeping service is essential and since related to manufacturing activity is an Input Service – Cenvat Credit available: CESTAT
MUMBAI, APR 13, 2010: THE
assessee was denied Cenvat credit by the lower authorities on the ground that the following services viz. Insurance on company vehicles, Tours & Travels, factory garden maintenance and plant housekeeping services were not Input services.

Cenvat Credit on capital goods - assessment of goods at supplier's end under Chapter Heading 73.08 cannot be reopened by recipient of goods - Credit prima facie not admissible - plea that credit is admissible as input is also not admissible: Cestat
NEW DELHI, APR 07, 2010: THE
applicant is engaged in providing the service of development, customisation and implementation of computer software and availed credit on capital goods, i.e., FACT - 10 Meter RF Shielded in EMC Chamber. The said equipment was classified under Chapter 73 by the supplier. Since Chapter 73 is not covered under the definition of capital goods, show cause notice was issued to the appellants demanding the credit availed. The demand was confirmed with interest and penalty in adjudication.

Even after receipt of show-cause notice, appellant continued default and it was only after more than one year since receipt of SCN that they started paying service tax - Bona fides not proved – Pre-deposit ordered of penalty: CESTAT
MUMBAI, MAR 10, 2010:
DURING the period of dispute (10.9.2004 to 31.3.2007), the appellant had provided outdoor catering service to the clients, viz. The National Institute of Bank Management (NIBM) but did not pay service tax in respect of the catering charges received from NIBM. They were not even registered with the department as ‘Outdoor Caterers'. They obtained such registration only in March 2007 and, that too, at the instance of the department.

ST - Commercial Training & Coaching Service - Demand for period prior to insertion of Expln in ST Rules, 1994 regarding value of taxable service received prior to providing taxable service - prima facie case in favour but for later period post October 2004 appellant ordered to make pre-deposit: CESTAT
MUMBAI, MAR 08, 2010:
The applicant, a provider of “Commercial Training and Coaching Service” subject to tax from 01.07.2003 seeks waiver of pre-deposit and stay of recovery in respect of service tax of Rs.40,87,384/- and equal amount of penalty. The above demand of service tax has been raised partly on fees collected by the assessee from their students prior to 01.07.2003 and partly on the fees collected from them during October, 2004 to March, 2006.

Budget 2010-11: Service Tax No More A "Silent" Tax
NEW DELHI, FEB. 27, 2010:
AMONGST all fiscal levies it is Service Tax that takes the longest to digest, but its impact is no less than other levies whose increase gets immediate passionate reactions. The reason for the almost 'silent' nature of Service Tax that is taken for granted by tax officials is that in everyday life one hardly realizes the extent and variety of services one consumes. Of course, Service Tax Goods Transport was much agitated but public memory is short. In contrast, an increase in Income Tax makes one immediately take out a calculator to determine the net impact while expected rise in prices due to higher Customs and Central Excise duties ensures without fail long lines at petrol pumps of anxious motorists and at departmental stores of worried housewives, eager to save just that little bit before midnight. However, Budget 2010-11 may well mark the coming of age of Service Tax in terms of being at par with other indirect tax levies in evoking instant public opinion.

CENVAT Credit on pipes used for laying pipeline for transportation of natural gas – Credit is prima facie admissible – Credit is also prima facie admissible on Construction service and Commissioning and Installation Service – Tribunal waives pre-deposit: CESTAT
AHMEDABAD, FEB 17, 2010:
THE appellant is a State Government undertaking in Guajrat, engaged in providing the service of transport of goods through pipelines.  Three Stay applications have been filed by the appellant on the following issues:

1. Denial of CENVAT Credit of Rs 44 crores on pipes used for construction of the pipeline by the EPC contractor.

2. Denial of CENVAT Credit of Rs 63.70 crores on input services like, Construction Service, Commissioning and Installation Service and

3. Demand of Service tax of Rs. 34.34 crores by classifying the service under the category of Clearing and Forwarding Service, instead of under “Transport of goods through pipeline”

All Those Behind The Camera, Smile Please!
CHANDIGARH, FEB 13, 2010: PUNJAB
and Haryana High Court has brought cheer to photographers by its recent ruling treating photography services as a works contract wherein service tax is not leviable on its sale portion. The implication is that service tax is no longer payable on the value of goods/material consumed, during the course of processing of protographs.

ST - Commercial Training & Coaching Service - Demand for period prior to insertion of Expln in ST Rules, 1994 regarding value of taxable service received prior to providing taxable service - prima facie case in favour but for later period post October 2004 appellant ordered to make pre-deposit: CESTAT
MUMBAI, MAR 08, 2010:
The applicant, a provider of “Commercial Training and Coaching Service” subject to tax from 01.07.2003 seeks waiver of pre-deposit and stay of recovery in respect of service tax of Rs.40,87,384/- and equal amount of penalty. The above demand of service tax has been raised partly on fees collected by the assessee from their students prior to 01.07.2003 and partly on the fees collected from them during October, 2004 to March, 2006.

Budget 2010-11: Service Tax No More A "Silent" Tax
NEW DELHI, FEB. 27, 2010:
AMONGST all fiscal levies it is Service Tax that takes the longest to digest, but its impact is no less than other levies whose increase gets immediate passionate reactions. The reason for the almost 'silent' nature of Service Tax that is taken for granted by tax officials is that in everyday life one hardly realizes the extent and variety of services one consumes. Of course, Service Tax Goods Transport was much agitated but public memory is short. In contrast, an increase in Income Tax makes one immediately take out a calculator to determine the net impact while expected rise in prices due to higher Customs and Central Excise duties ensures without fail long lines at petrol pumps of anxious motorists and at departmental stores of worried housewives, eager to save just that little bit before midnight. However, Budget 2010-11 may well mark the coming of age of Service Tax in terms of being at par with other indirect tax levies in evoking instant public opinion.

CENVAT Credit on pipes used for laying pipeline for transportation of natural gas – Credit is prima facie admissible – Credit is also prima facie admissible on Construction service and Commissioning and Installation Service – Tribunal waives pre-deposit: CESTAT
AHMEDABAD, FEB 17, 2010:
THE appellant is a State Government undertaking in Guajrat, engaged in providing the service of transport of goods through pipelines.  Three Stay applications have been filed by the appellant on the following issues:

1. Denial of CENVAT Credit of Rs 44 crores on pipes used for construction of the pipeline by the EPC contractor.

2. Denial of CENVAT Credit of Rs 63.70 crores on input services like, Construction Service, Commissioning and Installation Service and

3. Demand of Service tax of Rs. 34.34 crores by classifying the service under the category of Clearing and Forwarding Service, instead of under “Transport of goods through pipeline”

All Those Behind The Camera, Smile Please!
CHANDIGARH, FEB 13, 2010: PUNJAB
and Haryana High Court has brought cheer to photographers by its recent ruling treating photography services as a works contract wherein service tax is not leviable on its sale portion. The implication is that service tax is no longer payable on the value of goods/material consumed, during the course of processing of protographs.

Institute conducting aircraft-specific type rating training, not covered under exclusion of which issues a certificate recognized by law, nor covered as a vocational training institute: Advance Ruling
NEW DELHI, FEB 10, 2010: M/s
CAE Flight Training (India) Pvt. Ltd., Bangalore, (CFTI), the applicant, is a joint venture between Flight Training Device (Mauritius) Ltd, a 100% subsidiary of CAE Inc., Canada and Emirates CAE Flight Training LLC, Dubai. The applicant is engaged in providing various Flight Training Services at its facility in Bangalore. It now intends to provide aircraft specific “Type Rating Training” to the trainee pilots as part of its flight training services.

No bar on taking CENVAT credit on input services by SSI units working under exemption Notification 8/2003-CE: CESTAT
AHMEDABAD, FEB 04, 2010: CAN
a small scale unit availing exemption under Notification No 8/2003 CE dated 1.3.2003 take CENVAT Credit on input services? YES, as per a recent CESTAT order. The appellant assessee is an SSI Unit and is availing exemption under Notification 8/2003 CE. Show cause notice was issued to the unit proposing to deny CENVAT Credit on the input services availed during the exemption. The demand was confirmed by the adjudicating authority as also by the Commissioner (Appeals).

Import of services – No tax prior to 18.04.2006: High Court
CHANDIGARH, FEB 03, 2010: YET
another High Court has put a stop to Revenue's cavalcade to tax a service without the authority of Law. In the instant case the revenue was before the High Court with the following substantive questions of law:

(i) Whether the service tax was leviable on the recipient of service irrespective of Section 66-A of the Finance Act?

(ii) Whether non-supply of information to the department regarding overseas commission with the intention to evade service tax does not amount to suppression of facts and invite invocation of extended period of limitation?

Quantification of duty in Show Cause Notice does not amount to pre-determination of issue – writ cannot be allowed: Madras HC
CHENNAI, FEB 02, 2010: THE
prayer in the writ petition is to quash a show cause notice dated 17.09.2009 issued by the first respondent calling upon the petitioner to show cause notice within a period of 30 days as to why service tax should not be demanded for the period from July 04 to February 05 under proviso to section 73(1) of the Finance Act 1994 and as to why interest at applicable rate should not be demanded under section 75 of the Act and penalty under Section 76 and 78 of the Act, should not be imposed.

While assessee appeals to CESTAT for allowing credit of service tax paid through debit notes issued by service providers, CESTAT goes beyond scope of SCN to question eligibility of credit itself – Directs original authority to examine eligibility of credit on input services apart from eligibility of taking credit on debit notes
CHENNAI, FEB 01, 2010: THE
appellants, M/s Chemplast Sanmar Ltd, are engaged in manufacture of caustic soda and chloromethane. A show cause notice was issued to them disallowing credit of service tax paid on certain input services on the ground that credit was availed on the basis of debit notes issued by service providers, which were regarded as ineligible documents. After meeting with little success in convincing the lower authorities and the Appellate Commissioner they were before CESTAT for redressal.

Appellant renting their premises to bank and persisting with them to pay service tax but same was paid belatedly – upon receipt, tax immediately deposited in treasury – No cause for Penalty in view of Sec 80 of Finance Act, 1994: CESTAT
MUMBAI, JAN 29, 2010: THE
facts of the case are that the appellant (Mrs. Taradevi Bafna) had provided their premises on rent to Oriental Bank of Commerce . A show-cause notice was issued, wherein it was charged that the appellant had delayed payment of service tax for the period from June, 07 to March, 08...

Rent a cab service, outdoor catering service, air travel booking, telephone/mobile services and steamer agent qualify as 'input service' – Refund of un-utilised Cenvat credit admissible – CESTAT
MUMBAI, JAN 28, 2010: EIGHT appeals against eight orders-in-appeal, all dated 08.08.08 were filed by the appellant company before the CESTAT, WZB, Mumbai. They were heard together on 29th October, 2009 and the order was passed recently. The notable feature of this order is its running length - 52 paragraphs spread over fifty pages.

BAS - Commission Agent in India for foreign client – Export of services – Over Rs 30 Crore demand stayed: CESTAT
BANGALORE, JAN 27, 2010: THE impugned order confirmed the following liability against the appellants:-

Supreme Court issues notices on payment of Serrvice Tax at behest of AAI:IST
NEW DELHI, 27 JAN, 2010: AAI (Airports Authority of India) heaved a sigh of relief with the Supreme Court issuing notices to various licensees on its petition for payment of Service Tax allegedly not paid by them.

Amount paid due to misunderstanding of law, when no tax was payable - limitation under Section 11B of Central Excise Act not applicable - Karnataka HC
BANGALORE, JAN 22, 2010: THE petitioner paid over One Crore rupees as service tax on the activity of construction due to a misunderstanding of law.

Construction of a building in Sri Lanka - tax paid by misunderstanding of law - Amount paid is not tax and refund not governed by limitation under Sec 11B of Central Excise Act: Madras HC
CHENNAI, JAN 22, 2010: THE petitioner is seeking a Mandamus, directing the respondent to refund the service tax paid by them under a mistake of law, on export of services.

Value of material supplied free by service recipient has to be included for computation of Gross value charged under Notification15/2004 ST: CESTAT
AHMEDABAD, JAN 21, 2010: NOTIFICATION 15/2004 ST dated 10.9.2004 (present Notification No 1/2006 ST dated 1.3.2006) provided exemption in excess of 33% of the gross amount charged for providing the service.

Service Tax is liable to be paid only when service is received from GTA and not truck owners or transporters - Legislative intent is not to tax truck owners or truck operators: CESTAT
BANGALORE, JAN 20, 2010: THE appellants are engaged in the business of exporting iron ore and registered themselves with the service tax authorities as a recipient of GTA service.

Service Tax - Construction of godowns at Railway yard for Central Warehousing Corporation which in turn lets out same for commercial purpose is taxable under Commercial & Industrial Building Construction services: CESTAT
MUMBAI, JAN 18, 2010: THE appellants, a Private Limited company, constructed godowns with ancillaries, roads, electrical installation at the Railway yard for Central Warehousing Corporation.

Tax payments through forged documents; is the law too soft? : IST
PUNE, JAN 17, 2010: SERVICE Tax Cell, Pune has filed a police complaint of forgery against Mr. Ramdas Popat Kusalkar, proprietor of Shrepad Enterprises and his tax consultant Mr. Deepak Joshi for allegedly evading Service Tax to the tune of over Rs. 50 lakhs by manipulating and forging the duty paying documents.

Photography Services, Air Travel Agent & Tourist Taxi Services are not Input Services – CESTAT dismisses ROM application by saying that if appellant is aggrieved only remedy is to file a statutory appeal and not by a ROM application
MUMBAI, JAN 14, 2010: THE lower authorities denied the benefit of Service Tax credit in respect of Xerox machine maintenance services, Air travel Agent Services, Tourist Taxi Service and Photography Services.

Google vs. the Dragon: IST
NEW DELHI, JAN 14, 2010: FACING
up to what could possibly be its biggest challange in unchartered territory Google appears to have struck first blow by reiterating its policy statement made in 2006 when it entered China, "we will not hesitate to reconsider our approach to China".

Taxing Google services the French way: IST
PARIS, JAN 09, 2010: "IF you cant catch them, tax them" seems to be the new mantra of the French Government as it considers a proposal to tax online advertising income of Google, Yahoo and other Internet search engines and portals. Getting popular by the day as "Google Tax," the proposed measure is primarily aimed at financing France's cultural institutions and compensating creators for dwindling revenues because of the collapse in sales of CDs and the absence of a corresponding rise in online music sales on account of digital privacy and illegal downloading.

Cenvat Credit – BAS - Export Commission – there seems to be a nexus between clearance of finished goods and payment of export commission - prima facie satisfies definition of input service: CESTAT
MUMBAI, JAN 08, 2010: A Stay application was filed by the appellant seeking waiver of pre-deposit and stay of recovery in respect of CENVAT credit of Rs.4,50,061/- which the Commissioner, Central Excise, LTU has denied saying that the four taxable services are outside the purview of ‘input service' defined under Rule 2(l) of the Cenvat Credit Rules, 2004.

Production of goods containing alcohol and discharging State Excise duty – CESTAT while granting Stay ordering for pre-deposit – later, in another case of same appellant setting aside order of lower authority by holding activity not liable to Service Tax under head BAS – Appellant files Misc petition – CESTAT dismisses same as infructuous
MUMBAI, JAN 07, 2010: THE Service Tax BAS mess continues unabated.

Service tax - C&F Agent - Commission agent also acting as a consignment is covered within definition of C&F Agent: Karnataka High Court
BANGALORE, JAN 07, 2010: THE question before the Karnataka High Court was “ When M/ s.Mahaveer Generics are rendering the service of receiving, storing and distributing the goods manufactured by M/s. CIPLA Ltd., whether the Hon'ble CESTAT, Bangalore is right in holding that the party was not acting as clearing and forwarding Agents and was not providing taxable service."

Service Tax – Construction of flats and transferring them to land owners who are co-developers in exchange for land cannot be held to be any service – Restriction of utilization of Credit to 20% under Rule 6(3)(c) not sustainable – Complete waiver of pre-deposit: CESTAT
BANGALORE, JAN 06, 2010: THE appellants are engaged in construction of residential complexes and are registered with service tax authorities under the taxable service categories of ‘commercial or industrial construction service' and ‘construction of complex service'. They are also registered with VAT authorities and assessed for levy of VAT under the head ‘works contract' for transfer of goods involved in construction of complexes.

Garden Maintenance services – Apex Court in Maruti Suzuki has only considered word 'input' and there is no finding with regard to 'input service' - A good garden creates a better atmosphere which increases working efficiency – Cenvat Credit available: CESTAT
MUMBAI, JAN 05, 2010: THE issue involved is whether an assessee is eligible to avail Cenvat Credit on garden maintenance service.

From face of bills, it cannot be determined as to what purposes mobile phones are being used - No statement of any employee is on record with regard to use of phones- Assessee has given phones to employees for use of business purpose only, which was never controverted by lower authorities through any evidence - Cenvat Credit of ST allowed by CESTAT
MUMBAI, DEC 31, 2009: WHETHER CENVAT credit is available on Mobile Phone Services is now become an agonizing issue. Coupled with the fact that the credits involved are paltry enough to be given the boot at the threshold stage itself, it is surprising that the see-saw of eligibility continues to haunt an assessee.

India Security Portal to protect data/information/cyber security: IST
NEW DELHI , DEC. 31, 2009: THE Data Security Survey report released by Secretary, Department of Information Technology (DIT), Ministry of Communications and Information Technology (MCIT) confirms that in comparison to manufacturers and PSUs, IT/ ITeS and Financial services are better prepared to address information security and data privacy challenges.

Works Contract or Construction - Activities which are concerned with welfare of citizens of this country has been excluded from liability of service tax: CESTAT
BANGALORE, DEC 30, 2009: THE assessee had executed Projects relating to construction of reservoirs, canals, distributory system to feed various ayacut, land etc. for Government of Andhra Pradesh. The Revenue proceeded against the appellant on the ground that such an activity would fall under the category of works contract and liable for service tax as “turnkey projects including engineering, procurement and construction or commissioning (EPC) projects” under ‘Works Contract Services'...

Services provided by one constituent of HUF to other constituents of HUF not taxable – Service tax authorities having issued single registration to HUF cannot regard constituents of HUF as separate entities and levy tax: CESTAT
BANGALORE, DEC 29, 2009: THE appellant is a constituent of a HUF viz., Ramoji Rao – HUF based at Ramoji Film City, Hyderabad. Service tax authorities proposed to levy tax on the appellant on the ground that they are engaged in providing manpower recruitment or supply agency service to other constituents of the HUF. The lower authority confirmed the service tax demand and imposed penalties.

CAGs Performance Appraisal on Business Auxiliary Services reveals systemic deficiencies: IST
NEW DELHI, DECEMBER 26, 2009
:
COMPTROLLER AND AUDITOR GENERAL (CAG) has in its Performance Appraisal Report PA No. 24 of 2009-10 observed that "the internal control mechanism existing in the department to bring unregistered service providers into tax net were ineffective and inadequate." In its scathing criticism covering various aspects of administration relating to Business Auxiliary Services...

Relevant date from which service receiver in India is liable to pay Service Tax on services received from outside India finally settled: IST
NEW DELHI, DECEMBER 25, 2009
: The matter of relevant date from which onwards the Indian service recipient is liable to pay Service Tax on services received from a non-resident who does not have an office in India has been the subject matter of innumerable disputes with the tax officials insisting the liability arises from 2002 (or at the very least, from 1.1.2005) and the tax payers countering that the correct date is 18.4.2006.

ACES set to deliver a death blow to the much dreaded Inspector Raj!: IST
NEW DELHI, DECEMBER 8, 2009 : SYSTEMS Directorate of the CBEC is currently in an overdrive to launch ACES in all Central Excise and Service Tax Commissionerates in the country by December 15th. With ACES having already rolled out in around 60 Commissionerates of Central Excise and Service Tax it can safely be presumed that this is one initiative of CBEC that will meet the deadline.

Service Tax – Security Service – BSNL directed to pay Service Tax amount with interest, to service provider who has to pay it to the government: Allahabad HC
ALLAHABAD, DEC 02, 2009: THE tragedy of a hapless service provider stuck with a Show Cause Notice from the Department and the service recipient refusing to reimburse the tax, is an everyday story in the life of any consultant.

Service Tax – Eligibility of credit of service tax paid on outward freight – CESTAT adjourns case till stay application of Revenue against Larger Bench decision in ABB Ltd is disposed of by Karnataka High Court
CHENNAI, DEC 01, 2009: THE controversy surrounding the availability of CENVAT credit of service tax paid on outward freight for transportation of goods refuses to die. This hydra headed monster rears its head again and this time the controversy is stoked by the Chennai Bench of CESTAT.

Service tax - Supply of workers for housekeeping & toilet cleaning, liable to ST under recruitment or supply of manpower: CESTAT
AHMEDABAD, NOV 30, 2009: THE appellant is engaged in supplying of manpower and is covered by supply of manpower service which was brought into service tax net with effect from 16.6.2005.

Service Tax - Activity of receipt, storage and sale of goods on commission is not covered by definition of C&F Agent's service: CESTAT
NEW DELHI, SEPT 30, 2009: IN this interesting case, the Member (J), allowed the appeal observing, “We are unable to understand how the authorities without identifying the documents on which they rely, have proceeded against the appellant to issue SCN and made adjudication. So also first appellate order was passed.

P&P medicament manufacturer - In-process analysis of semi-finished goods as well as final products so that goods meet specifications laid down under Drugs & Cosmetics Act - Debit notes raised - whether liable to Service Tax under category of 'Technical Testing and Analysis Service' - CESTAT orders pre-deposit
MUMBAI, SEPT 18, 2009: THIS is a Stay application filed against the Order passed by the Commissioner(Appeals). The Commissioner(Appeals) while upholding the Order of the Deputy Commissioner confirming the demand of service tax of Rs.3,11,520/- together with interest has reduced the penalty to Rs.15,000/-.

Service Tax – Is interest payable for period during which operation of provisions of statute was stayed by interim order of High Court? - Kabhi Haan Kabhi Naa
CHENNAI, SEPT 17, 2009: RECENTLY , an issue came up before the Chennai Bench of the CESTAT on payment of interest for the period during which there is a stay against the operation of the provisions of the Statute.

Service Tax - maintenance of green belt - not 'maintenance of immovable property': CESTAT
NEW DELHI, SEPT 14, 2009: REVENUE filed this appeal against Order of the Commissioner (Appeals) whereby adjudication order was set aside and it has been held that the activities pertaining to maintenance of green belt and maintenance of grass, plants, fruits, trees & shrubs, etc

ST –Service Tax and Export Oriented Units (EOUs) – Legal implications and fiscal benefits: IST
NEW DELHI, SEPT 12, 2009: THE
Foreign Trade Policy, 2009-2014 allows the establishment of service units under the EOU/STP/EHTP/BTP scheme for export of services out of India and earnings in convertible currency in terms of the Export of Service Rules, 2005...

Service Tax - Rs 1.86 Crore demanded as differential tax - Difference occurred due to errors in returns - Commissioner had not attempted to verify and ascertain correct figures - matter remanded: CESTAT
CHENNAI, SEPT 12, 2009: SIFY
are engaged in providing various taxable services such as internet cafe service, leased circuit service, franchise service, advertisement agent service, online information and database access/retrieval service. Scrutiny of the ST-3 returns and the records maintained by Sify indicated that they had not discharged their tax liability in full for the period October, 2005 to March, 2006.

Service tax on services received from outside India can be discharged from CENVAT Credit account – No exclusion provided in scope of 'output service' defined in Rule 2(p) of CCRs, other than GTA prior to 01.03.2008 – Pre-deposit of Rs. 3.3 crores waived and stay granted: CESTAT
BANGALORE, SEPT 10, 2009:THE appellants, M/s Toyota Kirloskar Motors Pvt. Ltd, received certain taxable services like intellectual property service, Commissioning & Installation Service, Maintenance & Repair Service from outside India

Service Tax – Appeal against Tribunal's order on taxability of service – Appeal lies to Supreme Court: Delhi High Court
NEW DELHI, SEP 04, 2009: THE Tribunal held that when the service is provided by a club to its members, it does not attract service tax. Where does an appeal lie against such a decision of the CESTAT? The Revenue appealed to the High Court.

Service tax - advertisements, sales promotion, market research entitled for input credit more particularly if they form a part of price of final product - Coke and Pepsi get a huge reprieve from Bombay High Court
MUMBAI, AUG 28, 2009: IN
a landmark judgment delivered by the Mumbai High Court, it was held that advertising/marketing services and/or sales promotion services procured by manufacturers of ‘concentrates' for marketing aerated beverages are ‘input services' and the service tax paid thereon is available as input credit

ST – Export of Services – Provision of marketing support services on behalf of client outside India not regarded as export of service if said services are consumed by ultimate clients located in India – Microsoft ordered to pre-deposit Rs 70 Crore: CESTAT
NEW DELHI, AUG 25, 2009: THE one single case which is all set to redefine the cross border transactions in services has reached the Tribunal.

Service Tax – No provision under CESTAT Rules directing Principal Officer filing appeals to attach requisite authorization to file appeals before CESTAT – Preliminary objection of Revenue to dismiss appeal for lack of proof of authorization in favour of person filing appeal, liable for rejection: CESTAT
NEW DELHI, AUG 24, 2009: THE
Revenue raised a preliminary objection that the person who filed the appeals on behalf of the assessee as its principal officer has not filed the requisite authorization from the company that he is the authorized person to files such an appeal before the CESTAT.

Cenvat Credit – Security Services provided to Director at his residential bungalow, Repair & maintenance of guest house and garden – Prima facie there is nothing to show that there was any connection, directly or indirectly in or in relation to manufacture or clearance of finished products - CESTAT orders pre-deposit
MUMBAI, AUG 20, 2009: Day
by day, on the Cenvat Credit side, things have started getting weirder .

Input Service - Mobile phones supplied to employees and bills paid by company under presumption that same are to be used in connection with business - As this presumption is in favour of assessee, rebuttal has to come from Revenue – Credit allowed: CESTAT
MUMBAI, AUG 19, 2009: THIS appeal is against denial of CENVAT credit amounting to Rs.40,592/- on certain taxable services for the period 2004-2005 to 2006-2007.

Cenvat Credit of service tax - Even if appellate authority while waiving penalty cited section 80 of Finance Act, 1994 which does not apply to facts of case, in absence of mens rea, penalty cannot be imposed under Sec 11AC: CESTAT
MUMBAI, AUGUST 11, 2009: AS
assessee had availed CENVAT credit of Service tax paid on repairs & maintenance service for maintenance of the air condition machines and water coolers installed in their factory, guest house and residential colony

Xerox machine maintenance is an Input service but Photography Services, Air Travel Agent & Tourist Taxi Services are not Input Services – Unconventional trade practices cannot bolster Cenvat credit claim: CESTAT
MUMBAI, AUG 07, 2009: MINUSCULE amounts of Cenvat credits adding up to Rs.22,078/- were taken on the following services - Xerox machine repairs and maintenance, Air Travel Agents, Tourist taxi & Photography.

Service Tax – BAS - commission paid to sales agents – input service – entitled for credit – demand and penalty set aside: CESTAT
BANGALORE, AUGUST 06, 2009: THE appellant herein is a manufacturer of PIG iron, Ductile Iron (Spun Pipes), Slag Cement and are clearing the same on payment of appropriate Central Excise duty. The appellants are also availing Cenvat credit of inputs as well as on the Service Tax paid by them on the services received by them.

Service Tax – Cenvat Credit - services undertaken like lawn mowing, garbage cleaning, collection of household garbage, harvest cutting and weeding, etc. When the appellant is under an obligation to maintain a colony, all the services received in maintaining such a colony would also be covered as input services - CESTAT
BANGALORE, AUG 05, 2009: THE
issue relates to service tax credit availed by the appellants on input services

Nagpur University entering into a contract with appellant for transportation of written answer books from district centres to Nagpur - whether appellant a 'Rent-a-Cab' operator - Prima facie case in favour: CESTAT grants stay
MUMBAI, JULY 31, 2009: THE appellant is a proprietary concern, who entered into a contract with Nagpur University for transportation of written answer books from District Collection Centres to Nagpur . 

Service Tax - Laying of pipelines for drinking water supply projects, prima facie not leviable to tax under Commercial or Industrial Construction Service – Pre-deposit of Rs 15 crore towards duty and penalty waived and stay granted: CESTAT
BANGALORE, JULY 30, 2009: THE
appellant, M/s Nagarjuna Constructions entered into an agreement with the Gujarat Water Supply & Sewerage Board (GWSSB) for laying of long distance pipelines for drinking water supply projects in the State of Gujarat .

Dates of hearing are fixed as per decision of Tribunal and not at sweet will of parties or their representatives: CESTAT
BANGALORE, JULY 26, 2009: AN
appellant's representative who tried to get an “appointment” with the Tribunal on a date of his convenience, found the application dismissed.

Tribunal cannot give a go-bye to a patent error found in orders of lower authorities – composite penalty could not have been imposed under sections 76 and 78 of Finance Act, 1994 - CESTAT remands matter
MUMBAI, JULY 24, 2009: THE
appellant is engaged in storing empty containers.

Service Tax – Construction service – Service to self not taxable – No tax on ‘works contract' prior to 1.6.2007 – matter remanded: CESTAT
CHENNAI, JULY 22, 2009: M/s Prince Foundation Ltd. ( PFL ), the appellants are engaged in “commercial or industrial construction” and “construction of residential complex”.

For benefit of CENVAT credit on mobile phone, it is necessary that assessee establishes that phones were used exclusively for purposes connected with business or, directly or indirectly, in or in relation to manufacture of excisable goods - CESTAT orders pre-deposit
MUMBAI, JULY 17, 2009: IT was only two weeks ago that the CESTAT had in the case of Vikram Ispat [ 2009-TIOL-997-CESTAT-Mum ] come to the conclusion that

Constitutional validity of Service Tax on hire purchase and leasing upheld: Madras High Court
CHENNAI, JULY 16, 2009: THE writ petitioners are non banking financial companies engaged in the business of hire purchase and leasing. The senior counsel Mr. Aravind P. Datar appearing for the petitioners submitted that

Service Tax – Air Travel Agent – Tax collected on Basic Fare, but not paid to Government – Separate penalty under Section 76 and Section 78 imposable – Tax paid before Adjudication – penalty should be 25%: CESTAT
NEW DELHI, JULY 15, 2009: THE
Appellant is an Air Travel Agent, having its head office in Chandigarh and branch office in Delhi.

CENVAT Credit – Outward Transport – CESTAT does not consider binding precedents of HC order in Ambuja Cements and Tribunal Larger Bench decision in ABB Ltd case - both of which are binding - Tribunal has failed to address itself to applicability and binding effect: Allahabad HC
ALLAHABAD, JULY 13, 2009: APPELLANT was issued a notice dated 10.10.2007 to show cause as to why

When factual position was very plain like daylight, there was no reason for assessee to avail undue benefit of Cenvat Credit on Garden Maintenance Services – Exoneration cannot be claimed from penal liability: CESTAT
MUMBAI, JULY 10, 2009: THE two issues before the CESTAT in this appeal was whether the appellant was entitled to avail Cenvat Credit on following services

Applicant, country liquor manufacturer, enters into selling agency agreement with a HUF allowing them to use brand name ' Pahili Dhar ' – whether Service Tax payable under 'Intellectual Property Services' - CESTAT grants complete waiver of pre-deposit
MUMBAI, JULY 08, 2009: THE applicant is the manufacturer of sugar and molasses.  The applicant is also manufacturing country liquor under their brand name “ Pahili Dhar ” which is approved by the State Excise authority.  The applicant had entered into selling agency agreement with M/s Talreja Trade (HUF) with intention to obtain higher returns on their investments in their country liquor plant by increasing the sale of country liquor of their brand “ Pahili Dhar ” .

Cenvat Credit not available on Security services, Rent-a-cab services, Mobile Telephony services as appellants have not adduced evidence to establish nexus, if any, between the 'services' and the manufacture of final products: CESTAT
MUMBAI, JULY 01, 2009: WE
are in all probability going back to the Modvat era if the present turn of events is any indication.

Service Tax – Value of SIM cards to be included in value of taxable services; since SIM card are not goods, not liable to sales tax: High Court
KOCHI, JUNE 30, 2009: THIS
appeal is filed by the Commissioner of Central Excise and Customs challenging the order of the CESTAT, cancelling the demand of service tax on the value of SIM cards sold by the respondent to their mobile subscribers.

Section 80 of Finance Act, 1994 is unique provision not found in other statutes - If discretion is there not to impose penalty under Sec 80 ibid, discretion is as well there to impose lesser penalty: CESTAT
MUMBAI, JUNE 29, 2009: THE appellant is a Co-operative Bank registered as a service tax provider under the category of “Banking & Other Financial Services”. 

Producing products containing alcohol – whether Service Tax liability under Business Auxiliary Service – CESTAT orders pre-deposit of entire amount of Service Tax demand and interest
MUMBAI, JUNE 24, 2009: THE
issue is more than a year old and everyone felt that the Board Circular 249/1/2006-CX.4 dated 27.10.2008 had laid the matter to rest. In fact, we had in our column DDT-987 jocularly remarked that the Advocates could simply place the Board's letter before the CESTAT and laugh their way to the banks.

Exploration work carried out by PSU for Ministry of Mines for which only Grant-in-Aid is received – whether chargeable to Service Tax – CESTAT grants stay
MUMBAI, JUNE 17, 2009: THE
applicant is a Public Sector Undertaking and 100% shares are held by the President of India. 

Taking department and client for a bus ride by collecting but not depositing Service Tax into treasury – Penalty imposed pursuant to revision order is proper and legal: CESTAT
MUMBAI, JUNE 15, 2009: AN off beat survey by a group of MBA students in Maharashtra revealed that out of the companies and institutions booked for fraudulent business practices, a large number of them are operated under the names of gods and goddesses. Probably, the public is lured by these names and are confident that such companies are run by god fearing people who will not cause any harm to their investments.

Service Tax – C&F Agent – selling of tea for the principal – No return filed due to a bona fide belief – Demand barred by limitation – issue not decided on merits: CESTAT
NEW DELHI, JUNE 12, 2009: THE appellant had been receiving blended tea from their principals, namely M/s. The Luxmi Tea Company Limited, M/s. Sancheti Tea Company, M/s. Gillanders Arbuthnot & Co., etc.

Service Tax - Transfer of know-how of formulations and for bulk drugs – whether chargeable to Service Tax under category Scientific or Technical Consultancy – pre- deposit of Rs 2 Crores ordered: CESTAT
MUMBAI, JUNE 11, 2009: THE brief facts of the case are that the applicants are manufacturer of Medicaments. In September 2001, they decided to assign and transfer the trade marks of Antelol, Atelol, Aten, Aten-AM and Aten-IF to M/s Cadila Health Care Ltd. (CHCL) in terms of the deed of assignment dated 18.09.2001 perpetually for a consideration of Rs.70 crores.

Export of services – Rebate - Without questioning credit taken, eligibility to rebate cannot be questioned; Input services used in connection with procurement of other input services has to be treated necessarily as input services: CESTAT
NEW DELHI , JUNE 10, 2009: THE respondent through their various centres located at Mumbai, Pune , Bangalore and Gurgaon are engaged in rendering customer care services on behalf of foreign clients through the medium of telephone, e-mail and web based interaction. The services fall under the taxable category of business auxiliary service.

CESTAT Larger Bench –Preliminary objection by Revenue that matters shall be referred to Larger Bench only when a final view is arrived at by a division bench, referral at stay stage being illegal and invalid, rejected: CESTAT Larger Bench by Majority
NEW DELHI, JUNE 09, 2009: IN Customs, Excise and Service Tax matters, whenever there is a difference of opinion between two Coordinate Benches of the CESTAT, the Bench which differs with the views expressed or a decision given on any issue by another Coordinate Bench, refers the matter to the Registry to be placed before the President, CESTAT, outlining the points of difference and questions of law that may have to be settled by a Larger Bench and the President exercising his discretionary powers vested by Section 129C of the Customs Act, 1962 constitutes a Larger Bench to decide the issue.

CESTAT – reference to Third Member or Larger Bench – exclusive prerogative of President – can Service tax be recovered from GTA for the period November 1997 to June 1998 by notices issued after three years? Issue referred to Larger Bench: CESTAT President
NEW DELHI , JUNE 04, 2009: THIS issue is whether Service Tax in relation of goods transport service, received by a party during the period November 1997 to June 1998, can be recovered by issuing show cause notice in 2004.

Service Tax - Service received from abroad – No tax prior to 18.04.2006 – followed: Delhi HC
NEW DELHI, JUNE 03, 2009: THE
assessee is aggrieved by virtue of the fact that even though it was a recipient of taxable services of the nature of architectural services from a non-resident, viz. Callison Architecture Inc., USA, it was called upon to pay service tax in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994.

Bottling of liquor amounts to manufacture – it is outside purview of Service Tax : High Court Larger Bench
JABALPUR , JUNE 02, 2009: THIS
has been an intaxicating matter for quite some time. And we had covered the issue extensively. Now the Larger Bench of the Madhya Pradesh High Court has over ruled a Division Bench decision and now liquor is again out of Service Tax. Several cases are pending in CESTAT, waiting for the outcome of this LB Decision.

Section 80 of Finance Act, 1994 - Ignorance of law cannot be accepted as reasonable cause for failure to pay service tax - Any tax is a compulsory levy and, therefore, a new levy is raised by Government only with prior notice to public: Tribunal
MUMBAI , MAY 29, 2009: VIDE notification 8/2002-ST dated 01.08.2002, it was notified that inter alia, “ Health Club & Fitness Centre ” would be chargeable to Service Tax from 16.08.2002.

Service tax – Servicing of light commercial vehicles not subject to levy of service tax: CESTAT
BANGALORE, MAY 27, 2009: THE appellants are engaged in the sale and service of motor vehicles, computers and spares. They are registered with service tax authorities under the category of ‘Servicing of Motor Vehicles', ‘Technical Testing and Analysis' and ‘Business Auxiliary Service'.

Once an order is passed under Sec 84 of Finance Act, 1994 within two years, provisions of Section 84(5) stand complied with - there is no further requirement that remand order should also be passed within two years: HC
CHANDIGARH , MAY 26, 2009: SECTION
84 of the Finance Act, 1994 empowers the Commissioner to pass revision order in respect of the orders passed by the adjudicating authority subordinate to him. As per sub-section 5 of Section 4, "No order under this section shall be passed after the expiry of two years from the date on which the order sought to be revised has been passed".

Cenvat Credit - Outdoor Catering Services employed in factory canteen is an Input Service - adjudicating and appellate authorities in department have got to scrupulously follow binding judicial precedents for sake of administering justice in their proceedings: Tribunal
MUMBAI, MAY 22, 2009: WHAT
can one say about a Commissioner(Appeals) who refuses to follow a Larger Bench decision of the Tribunal and endlessly argues that had the points being taken by him agitated before the Tribunal by the Revenue representative, the outcome would

Cenvat Credit – Garden Maintenance Service has no nexus, even remotely, to manufacture or clearance of excisable goods, hence cannot be called Input Service: Tribunal
MUMBAI, MAY 21, 2009: WINDS
of change , this aptly summarizes the present decision of the Tribunal.

Appellant paying Service Tax as a Consulting Engineer on services received from abroad - later claiming that they are correctly covered under IPR Service and claiming refund for past period – appellants are estopped from construing provisions of agreement to contra for a part of period: Tribunal 
MUMBAI, MAY 20, 2009: IN the words of the Tribunal, this is a unique case.

Cenvat Credit - Rent-a-Cab Service to employees – whether it can be treated as Input Service – Argument that transportation of anything other than goods stood impliedly excluded from 'input services' not made before Bench in Cable Corporation case – Matter referred to Division Bench
MUMBAI, MAY 08, 2009: THIS
appeal is headed for a long and tortuous journey.

Lottery tickets are not goods - service tax, if any, would be payable only with effect from May, 2008 and not with retrospective effect; Raising of revenue by State, by itself cannot amount to rendition of any service. If a substantive law is introduced, it will have no retrospective effect, even if it says 'for removal of doubts' - Government loses lottery: Supreme Court
NEW DELHI, MAY 06, 2009: WHETHER
sale, promotion and marketing of lottery tickets would be exigible to `Service Tax' within the meaning of the provisions of Section 65(105) of the Finance Act, 1994 is the question involved in this appeal which arises from a judgment and order dated 18.9.2007 passed by the High Court of Sikkim - 2007-TIOL-732-HC- SKM -ST .

Prior to 01.03.2007, there was no requirement at all to have received payment in foreign exchange to qualify as Export of Service in terms of Export of Service Rules, 2005: CESTAT
BANGALORE, MAY 05, 2009: DRAFTING
skills at nadir coupled with advocacy skills at peak – the CESTAT has delivered a beautiful treatise on Export of Service Rules, 2005. For export of services, is it necessary that the payment should be received in Foreign Currency? NO, until 01.03.2007, when the lacuna in the Export of Service Rules was finally removed by amending the Rules – held the Tribunal.

ST - penalty – enhanced penalty by Revision Authority Commissioner - There was no basis for Revisional Authority-cum-Commissioner to acquire jurisdiction to impose penalty: High Court
CHANDIGARH, MAY 01, 2009: THE
revenue is in appeal with the following question of law:-

Service Tax - Movement of limestone and rejects in the mining area covered by the entry ‘mining of mineral, oil, gas' and cannot be taxed under ‘cargo handling service' prior to 1 June 2007: CESTAT
CHENNAI, APR 29, 2009: M/s
Thriveni Earthmovers (P) Ltd. Salem (TEPL) undertook the activity of “loading and transportation of limestone and rejects to crusher and reject dumps respectively” in the Dholipatti limestone mines area during the period August 2002 to November 2006 for M/s. Chettinad Cements Corporation [CCC] under an agreement entered into with them. As per the agreement M/s. TEPL received Rs.9/- per tonne towards loading of limestone/rejects and Rs.27.50 per tonne towards transportation of the same.

Service Tax - Self assessment - When no order capable of being appealed against, had ever been passed, it cannot be said that assessee could file appeal against assessment order - Refund sanctioned proper: Tribunal
MUMBAI, APR 27, 2009: THE
brief facts of the case are that the amount of Service Tax payable was self assessed and paid by the assessee. The return in form ST-3 for the period October 2006 to March, 2007 was also filed. Later, they filed a refund claim of Rs.2,29,010/- and which was sanctioned by the lower authority and this order was upheld by the Commissioner(Appeals).

Service Tax - re-rubberizing charges collected for reconditioning of used old rollers – liable to pay service tax: Advance Ruling
NEW DELHI, APR 22, 2009: THE Applicant has sought ruling of the Authority on the following questions with respect to re-rubberising old and used rollers;-

Amount collected prior to levy of service tax and service rendered after the service becoming taxable - the appellant is liable to pay service tax - any other view would amount to rigorous construction of machinery provisions: CESTAT
NEW DELHI, APR 22, 2009: WHAT is the relevant date for deciding the service tax liability? Is it the date of receipt of payment ? Is it the date of rendering the service? Is it the date of issuing the bill or invoice? How does one decide to pay service tax when the tax rate has been reduced, say from 12% to 10%? There seems to be no end to the confusion prevailing on this important issue and nobody is really seriously concerned.

Commercial or Industrial construction under works contract is taxable only with effect from 1.6.2007 - CESTAT grants wavier of pre-deposit
CHENNAI, APR 14, 2009: SERVICE tax is often referred to as the tax of the future, but it is surely not going to have a decent past.

Cash Management Service is not taxable under Business Auxiliary Service prior to June 2007: CESTAT
BANGALORE, APR 12, 2009: BUSINESS Auxiliary Service - the most dreaded service among various taxable services. This is like a residual entry. If any service is not taxable under any other service, then demands are raised under BAS.

Service Tax nightmares for SEZ Developers and units!
NEW DELHI, APR 11, 2009: Prior
to the enactment of the SEZ Act, 2005 Service Tax on services supplied to Developers and units in a SEZ for the purpose of their authorized activities was exempted by Department of Revenue vide Notification No.4/2004.

Service Tax - sharing of knowledge shall not be called as consulting engineering service: CESTAT
NEW DELHI, APR 08, 2009: BOTH
the appellants have challenged the order of adjudication passed on 19.10.06 holding that M/s Avi Oil India Pvt. Ltd. (" Avi Oil") has paid consideration to Nyco SA of Paris (" NYCO ) for providing consulting Engineering Service. Adjudicating Authority on the basis of show-cause notice dated 19.4.05 proceeded to raise the levy against Nyco S.A. holding that Noticee as the Service provider in respect of consideration received for the impugned period from 7.7.97 to 16.8.02.

Service Tax – Tour operator – charges for hotel rooms not to be included; payment received in advance for services not taxable at that time – no tax – matter remanded: CESTAT
NEW DELHI, APR 06, 2009: THE
appellant is rendering services as Tour Operator in the following manner.

ST– supply of vessels to ONGC – mining or supply of tangible goods - Introduction of new entry and inclusion of certain services in that entry would presuppose that there was no earlier entry covering said services; supply of vessels not taxable prior to 16.5.2008: Bombay HC
MUMBAI, MAR 26, 2009: MEMBERS
of the 1st petitioner, Indian National Shipowners' Association provide services to major exploration and production operators (in India as well as in the international waters) with their various vessels that include offshore drilling rigs, offshore support vessels, harbour tugs and construction barges. The vessels provided by the members carry out various jobs, inter alia,

Service Tax – Service provided by one person, tax paid by another – Credit entitled: CESTAT
NEW DELHI, MAR 20, 2009: A is the service provider but not registered with the Department. B is a sister concern registered with the Department. A writes to the Department that B will pay the Service Tax on its behalf. The service recipient takes credit, which is objected to by the Department, even though A was later made to pay the Service Tax with interest!

Service Tax – Confusion prevailing in industry on liability of service tax on recipients for services received from offshore service provider prior to 01.01.2005 – Provisions of Sec 80 applicable – No penalty leviable when tax paid before issue of SCN: CESTAT
NEW DELHI, MAR 19, 2009: THE appellants, M/s Alstom Project (I) Ltd received IPR services from their offshore service provider, M/s Alstom Holdings Treasury, France during the period October 2004 to March 2005 and paid an amount of Rs. 49 lakhs towards service tax along with interest even before the issue of show cause notice.

Service Tax - Study Centres of University collecting fees directly from students – liable to pay tax under 'commercial coaching and training': CESTAT
CHENNAI, MAR 18, 2009: THE
appellants are engaged in coaching of students desirous of taking examinations conducted by the Alagappa University. The students are taught the various subjects as per the syllabus prescribed by the University for each course .

Service tax - a sale of technical know-how does not amount to rendering of any consulting engineering service: CESTAT
AHMEDABAD, MAR 07, 2009: M/s
Ambalal Sarabhai Enterprises Ltd (ASE) entered into an agreement dated 19 October 1999 with Sarabhai Piramal Pharmaceuticals Pvt. Ltd. ( SPPL ) and another agreement dated the 18th of June 2000 with Sarabhai Zydus Animal Health Ltd.

Service tax – exempted and taxable service – restriction on 20% credit not applicable to Capital Goods Credit - something positive, rather than mere inaction or failure on part of an assessee has to be proved before invoking extended limitation period: CESTAT
NEW DELHI, MAR 05, 2009: THE
appellant are engaged in providing cellular mobile telephone service to their clients, which during the period of dispute, was taxable under the heading service provided by telegraph authority in relation to a telephone connection, as defined under Section 65(105)(b) of the Finance Act, 1994. The appellant have set up Base Trans-receiver Station Towers (BTS Towers) at various locations in the circle which emit and receive wireless signals to and fro between a person availing cellular mobile telephone service through his SIM card which is installed in the handset. As soon as the person dials a particular number, the same is transmitted to such towers.

ST - Cenvat Credit on Outward Freight - Revenue disallows -held, Assessee is eligible for Credit: High Court
CHANDIGARH, MAR 04, 2009: IN
DDT-599 while reporting the Gujarat Ambuja case ( 2007-TIOL-539-CESTAT-DEL ) - No credit of Service Tax on outward freight - landmark order from Tribunal, we stated, Not everything is lost. The issue has to be taken to a Larger Bench/High Court/Supreme Court. In DDT-601 , while reporting that the same issue was before the Bangalore Bench, we suggested, Now what can this Bench do, since there is already a decision by another Bench? It has only two choices – agree with the Delhi Bench or refer the matter to a Larger Bench. That is exactly what the Bangalore Bench did in the India Cement case - 2007-TIOL-1248-CESTAT-BANG .

Trade looks to Department of Revenue to support Commerce Minister
NEW DELHI, 27 FEB: NEW DELHI,  27 FEB: The
Supplement to the Foreign Trade Policy announced yesterday by the Commerce Minister promised much but suffered from the perennial shortcoming of its key components being linked to anticipated action by the Department of Revenue.  If past experience is a guide such proposals invariably get bogged down in turf wars between the sponsoring department and revenue...

Service Tax – BBC (India) collecting advertisement charges for BBC (UK) – when same person is providing broadcasting service and also the Business auxiliary service latter cannot be treated as an input for the former – Not eligible for Credit: CESTAT
NEW DELHI, MAR 03, 2009: THE
Appellant are a wholly owned subsidiary of BBC, U.K. and as per their agreement with BBC, they are required to liaise with the advertisers (customers) in India for selling commercial advertising airtime on the BBC world channel, collect the advertisement revenue from the customers (advertisers) and remit it to BBC, U.K., after deduction/deposit of the withholding tax/service tax and for these services, they get a commission from BBC. Services provided by a "Broadcasting agency or organization" became taxable w.e.f. 16/07/01.

CENVAT Credit – Service Tax paid on Erection and Commissioning at Buyer's premises – entitled for Credit - Rule does not require that service has to be rendered at factory of manufacturer for purpose of eligibility of service tax credit: CESTAT
AHMEDABAD, MAR 02, 2009: DURING
the period from 30.12.02 to 07.06.05 the appellants had availed CENVAT credit of service tax paid by them on erection and commissioning services received by them from a service provider on account of erection, commissioning of the machines at the premises of the buyers of said machines.

Supplement to Foreign Trade Policy announced by Commerce Minister dissapoints
NEW DELHI, 26 FEB: On
the last day of Parliament today Commerce Minister listed various trade facilitation measures in the Supplement to the Foreign Trade Policy that was laid in Parliament.  While wide ranging measures touching export promotion schemes such as DEPB, FPS, VKGUY, EPCG etc. were announced, the general consensus was that it was a case of too little too late.  The critics drew strength from the fact that few measures such as those relating to EOUs were linked to notifications to be issued by Department of Revenue and from past experience it was unclear when and if at all these will be issued. To add to the sense of despondency was the fact that the EOUs were expecting a declaration that the sunset clause of the Income Tax...

Cenvat Credit - Service Tax paid on Air Travel Agent's Commission and Real Estate Consulting Services – issue arguable, Pre-deposit ordered by Tribunal
MUMBAI, FEB 26, 2009: LESSER the quantum of duty or Cenvat credit involved in a dispute, more problematic the case is – you do not usually find a decision which has final say in the matter, there are contrary decisions given by the same Bench and the issue boils over to such an extent that as a humble assessee you feel it is better to pay the amounts and buy peace rather than spending astronomical sums and taking the matter to the Apex Court. In fact, they would prefer to plough back the probable litigation expenses into their business! No doubt, there are some assessees who can afford and who will or should we say, should take their case to the highest court – it is a matter or principles, not merely a pyrrhic victory.

Commission received from 'reinsures' is taxable even before amendment to Finance Act in 2006: CESTAT
CHENNAI, FEB 25, 2009: THE appellant is an insurance broker and also is a reinsurance broker. He receives the commission from the reinsurer also. The question before the Tribunal was whether this commission received from the reinsurers is taxable prior to the amendment in 2006 to the Finance Act, 1994 wherein Sections 65(58) and 60(105)(zl) have been amended to specify “ insurer includes reinsurer”.

CBEC Circular puts Realty Sector in neutral gear!
BANGALORE, FEB 24, 2009: THE Board Circular No. 108/02/2009-ST dated January 29, 2009 has, perhaps unintentionally, given an impression to a large number of flat buyers that the service tax levy on the Residential Realty sector has been completely removed.

Service Tax – Taxable event is rendering of taxable service., not raising of invoice or payment: Gujarat HC
AHMEDABAD, FEB 19, 2009: CAN
you imagine Revenue raising a demand of service tax for the period when there was no tax was payable, simply for the reason that payment was received when it was taxable? It not only happened, but they went in appeal to the High Court after they lost it CESTAT.

SEZs get away without payment of Service Tax.
Chennai, FEB 13, 2009:Turf wars between the Department of Revenue and the Department of Commerce on various export promotion schemes are no secret. Unfortunately, despite various administrative decisions to resolve outstanding issues, the problem is far from over as brought out by a recent audit objection in the case of SEZ units in Tamil Nadu.

Service Tax Return Preparer Scheme 2009.
NEW DELHI, FEB 05, 2009:Finance Act, 2008 introduced a new Section 71 to the Finance Act, 1994 to bring in novel scheme for facilitating Service Tax providers and others liable to pay Service Tax, in meeting their procedural requirements.  This was the Service Tax Return Preparer Scheme.  The proposal should have been made effective from 11.5.2008 when the Finance Act, 2008 was enacted, but to the concern of all concerned, no further action was taken to practically implement the new scheme. Thankfully...

Overwhelming Growth in Exports from SEZs & EOUs in just four years.
NEW DELHI, FEB 03, 2009:At the Export Awards function organized by the Export Promotion Council for Council for EOUs & SEZs (EPCES)today, Shri Kamal Nath, Union Minister for Commerce & Industry informed that during the period 2003-2004 to 2007-2008, exports from SEZs and EOUs have increased from Rs. 42,641 crore to Rs. 221,066 crore, a growth of 418%...

Service Tax - Once tribunal has granted full waiver at least in two similarly situated cases, it would not be proper to take a different view and deny full waiver of pre-deposit : Bombay HC
MUMBAI, FEB 18, 2009: THE
petitioners are an ex-servicemen company incorporated under the Companies Act, 1956. The petitioners and similar other companies are incorporated pursuant to a Memorandum of Understanding entered into with the Ministry of Energy and the Ministry of Defence. The shares of the petitioners are held by war widows and disabled soldiers.

Review of Economy 2008-09 released by PMs Economic Advisory Council - pegs GDP growth at 7.1%
NEW DELHI, JAN 23, 2009 : The Chairman, Economic Advisory Council to Prime Minister, Dr. Suresh D. Tendulkar released the Review of the Economy 2008-09 in New Delhi today wherein 2008-09 GDP Growth was pegged at a sharply lower but still optimistic 7.1%. (as compared to 7.7% projected in July 2008 and actual of 9% during 2007-08). The lowering of this critical growth parameter was explained chiefly in terms of slowdown caused by painful ...

Stay order - Subsequent decision can be basis of modification - pre-deposit order modified: CESTAT
AHMEDABAD, DEC 29, 2008 : VIDE stay order No . S/1424/ WZB / Ahd /07 dated 18.12.2007, appellants were directed to deposit an amount of Rs. 40 Lakhs within a period of 10 weeks, out of the total confirmed duty of Rs. 1,30,10,476/-.

Service Tax - No review by Commissioner after order passed by Commissioner (A) - doctrine of merger is not a doctrine of universal or unlimited application, and it will depend on the nature of jurisdiction exercised by superior forum: High Court
JODHPUR, DEC 24, 2008 : THIS
was the question framed for the High Court's verdict.

Service Tax - Can a works contract be vivisected and service portion taxed - Matter referred to Third Member: CESTAT
AHMEDABAD, DEC 23, 2008 : THE appellants have entered into contracts with M/s Bharat Petroleum Corporation Limited ( BPCL ), M/s Gujarat Electricity Board ( GEB ) and M/s Indian Oil Corporation Limited ( IOCL ) wherein they have been awarded execution of the EPC (Engineering, Procurement and Construction) projects on turnkey basis by the said customers. Under these contracts, the appellant's responsibilities included residual process design, detailed engineering, procurement, supply, transportation, storage, fabrication, construction, installation, testing, pre-commissioning, commissioning, and performance guarantee test run.

Turnkey project cannot be bifurcated so as to hold that a part of contract would fall under category of Engineering Service, leviable to Service Tax: Tribunal
AHMEDABAD, DEC 23, 2008 : THE
issue simply refuses to die.

Service Tax - Appeal stay – pre-deposit - Commissioner (A) before passing any interim order, shall consider whether direction for deposit as pre-deposit condition would cause undue hardship: Madras HC
CHENNAI, DEC 19, 2008 : THE
writ petition is against the order of the respondent, the Commissioner of Central Excise (Appeals) ,Salem , made in Miscellaneous Order No.33 /2008, dated 30.7.2008 which was passed as interim order pending final decision in the appeal filed by the petitioner against the order of original authority dated 13.11.2007.

Service tax - Service abroad – tax in India – valid only from 18.4.2006 - provisions of Rule 2(1)(d)(iv) clearly invalid - Before enactment of Sec 66A there was no authority vested by law in Revenue to levy service tax on a person who is resident in India, but who receives services outside India: Bombay High Court
MUMBAI, DEC 17, 2008 : BY this Petition the Petitioners challenge the constitutional validity of the following:-

Service Tax - Amnesty Scheme was really no scheme, not a 37B order - If an unregistered person is to get benefit, registered person should also get - Large Number of uncontested Tribunal judgements to be followed: Rajasthan HC
JODHPUR, DEC 16, 2008: ALL
these five appeals involve common question of law, as to whether the assessee is entitled to the benefit of Amnesty Scheme, or not as per the circular issued by the Central Board of Excise & Customs dated 20.9.2004.

Service Tax realised from clients but not deposited in Government treasury - Conscious disregard to law – Tribunal says there is no alternative than to prevent future recurrence by appropriate dose of penalty
KOLKATA, DEC 15, 2008 : THE
appellant is before the Tribunal against the lower appellate authority's order upholding the order in original which confirmed the service tax demand of Rs.9,67,681/- with interest and penalty of Rs.100/- per day under section 76 of the Finance Act, 1994 and also a penalty of Rs.9,67,681/- under section 78.

Service Tax - Institutions imparting higher education and conferring degrees cannot be equated to ‘commercial' training centres engaged in coaching – Service tax demands amounting to Rs 57 Cr set aside: CESTAT
BANGALORE , DEC 12, 2008 : THE
appellants, ICFAI, Hyderabad, The ICFAIAN Foundation, Hyderabad and the ICFAI Universities at Raipur, Dehradun and Tripura were struck with a service tax demand to the tune of Rs. 57 crores including mandatory penalties by classifying their activities as ‘commercial coaching or training service'.

Service Tax - Irrespective of where service may be provided, location like registered office would determine jurisdiction of Commissioner - Revenue wins but then loses case before Tribunal as Members constituting Committee were not appointed by notification in official gazette
KOLKATA, DEC 11, 2008 : ON
5th October, 2008 we had reported the decision of the Tribunal in the case of Mall Exim Pvt. Ltd., [ 2008-TIOL-1642-CESTAT-KOL ] that had left the Revenue helpless, with the caption “ Additional Charge Commissioner (or for that matter any Commissioner) has no locus standi to file appeal before Tribunal as they are not appointed by notification by Board ”. 

Cosmetic surgery to remove unwanted hair is not taxable under 'Beauty Treatment' service: CESTAT
AHMEDABAD, DEC 10, 2008 : BEAUTY
is in the eye of the beholder. If the beholder is a taxman, all that is done to improve your look is a taxable service. The appellant is a Cosmetic Laser Center .

Service tax - C-DAC imparts advanced courses in IT which cannot be equated to institutes providing coaching for competitive exams - Profit motive relevant to classify an institution as commercial or otherwise - Activities not liable to tax under 'commercial coaching or training service': CESTAT
BANGALORE, DEC 09, 2008 : CENTRE
for Development of Advanced Computing (C-DAC) is a registered society working under the administrative control of the Ministry of Communications & Information Technology, Government of India.

Service tax - Registered society exempt from Income Tax does not come under purview of 'commercial coaching or training centre' - 'Commercial' in statutory definition qualifies 'coaching or training centre' and not 'coaching or training' - Service tax not leviable: CESTAT
BANGALORE, DEC 08, 2008: ADMINISTRATIVE
Staff College of India was established as a society in the year 1956 on the recommendation of a committee of All India Council for Technical Education at the initiative or the Government and the corporate world.

Distribution of Cenvat Credit of Input Services by Input Service Distributor (Head Office) to unit engaged in the manufacture of goods which are captively consumed by other establishments – Tribunal grants waiver of pre-deposit and remands matter to Commissioner(Appeals)
MUMBAI, NOV 26, 2008: THE
issue involved in this case is regarding the distribution of Cenvat credit of the Service Tax paid by applicants on the input services and advertisement services, received from various advertising agencies.

Construction of individual houses is not taxable under 'construction of complex service' or under 'works contract': CESTAT
CHENNAI, NOV 25, 2008 :  AS
per Section 65 (30a) “construction of complex” means :-

Service tax on port services - Homa Engineering differed with – matter goes to Larger Bench
CHENNAI, NOV 19, 2008 : IN
terms of Section 65(82) of the Finance Act, 1994, ‘Port Service' means any service rendered by a port or other port or any person authorized by such port or other port, in any manner, in relation to a vessel or goods.

Service tax - Daelim in dilemma - Whether turnkey projects can be vivisected? - matter goes to Larger Bench
NEW DELHI, NOV 18, 2008 : IN early 2003, in Daelim Industrial Co Ltd Vs CCE Vadodara, 2003-TIOL-110-CESTAT-DEL a question arose whether works contract can be vivisected and the service component could be subjected to levy of service

Service Tax – GTA – outward transport not input service? – Inox Air gets stay from High Court
CHENNAI, NOV 17, 2008 : A
few excerpts from Our Research Team story in March 2008 - Cenvat Credit on input services - the certainty of uncertainty! - will be useful in understanding the issue better....

Sodexho Pass Services gets relief from Service Tax liability for the period prior to 01.05.2006 – Finding a prima facie case, Tribunal grants waiver of pre-deposit and Stays recovery
MUMBAI, NOV 14, 2008 : BRIEF
facts of the case are that the applicants are issuing meal and gift vouchers to corporate clients and were receiving service charges....

ST - Photography service is works contract - it involves both sale and service, and sale portion cannot be included in taxable value of service: CESTAT
NEW DELHI, NOV 11, 2008 : THE
dispute before the CESTAT in these four appeals relates to determination of the value of photography service as a taxable service for the purpose of levy of service tax...

Service tax - Daelim in dilemma - Whether turnkey projects can be vivisected? - matter goes to Larger Bench
NEW DELHI, NOV 18, 2008 : IN early 2003, in Daelim Industrial Co Ltd Vs CCE Vadodara, 2003-TIOL-110-CESTAT-DEL a question arose whether works contract can be vivisected and the service component could be subjected to levy of service tax....

Writ petition against orders of pre- deposit clearly maintainable - Delhi High Court
NEW DELHI, NOV 10, 2008 : THE
question before the High Court is whether a writ petition under Article 226 of the Constitution of India is maintainable against the order of the Appellate Tribunal for Foreign Exchange....

Services of Financial leasing provided to clients – Whether service tax to be paid at rate prevailing at time of receipt of EMI or at time of entering lease agreements – Tribunal finds prima facie case in favour – waives pre-deposit
MUMBAI, NOV 07, 2008 : WHEREAS
the Apex Court decisions in Wallace Flour Mills [2002-TIOL-216-SC-CX] and Vazir Sultan Tobacco Co Ltd. [2002-TIOL-215-SC-CX] have laid down the law in respect of the rate of Central Excise duty to be applied in respect of manufactured goods cleared after withdrawal of exemption or consequent upon introduction of a new Tariff entry, when it comes to Service Tax, the debate continues....

Service Tax - Penalty on revision when matter is under appeal - Commissioner, who imposes penalty for violation of Finance Act, violates his own Finance Act ... Commissioner's order premature: CESTAT
CHENNAI, NOV 06, 2008 : COMMISSIONERS
… They are the top officers who administer the tax in the field. The Government and the Board repose a lot of faith and trust in them....

For an amount of credit of Rs.19.62 lakhs, no assessee would like to forego benefit of 67% of the abatement as granted by the Notification 01/06-ST – Prima facie case for grant of waiver of pre-deposit as credit already reversed: Tribunal
MUMBAI, NOV 04, 2008 : THE
applicants are engaged in providing construction services, i.e construction of commercial and industrial building, residential complexes and civil structures as defined in Section 65 of the Finance Act, 1994...

Plea of ignorance cannot be taken when fact remains that respondents collected service tax from their customers and pocketed the same - Penalties imposable - Tribunal allows revenue appeal
MUMBAI, NOV 02, 2008 : BRIEF
facts of the case are that the respondent is engaged in providing ‘Health Club and Fitness Service” which has been notified as taxable service on 16.08.2002....

Limitation Act cannot be invoked for condonation of delay in filing revision application under Section 47 of Delhi Sales Act: Delhi HC Larger Bench
NEW DELHI, OCT 31, 2008 : THE
question referred to the Larger Bench of the High Court was....

Service tax - management consultancy service - TDS deducted on payments made - Commissioner(A) upholds cum-duty concept - TDS is paid on behalf of assessee by service recipient, and there is no justification for excluding TDS from gross sum chargeable to service tax: Tribunal
NEW DELHI, OCT 28, 2008 : WHAT
is the sum on which service tax is payable? Is it gross amount collected from the service recipient? Are reimbursements of expenses claimed from the service recipient deductible from the gross sum....

Service Tax - payment made by Citibank to VISA - Prima facie no tax prior to April 2006 - Stay granted: CESTAT
CHENNAI, OCT 22, 2008 : THE
impugned demand is on the gross amount of Rs.28,60,43,445/- paid by Citibank (appellant) to ‘VISA’ as consideration for the service received from the latter....

Builders, Contractors charging 'one-time maintenance charges from their customers' liable to pay Service Tax under the category 'Maintenance or Repair services' - Issue arguable - Tribunal orders pre-deposit as no prima facie case made in favour
MUMBAI, OCT 21, 2008 : THE other day, on a property hunting spree as the rates were heading south, a prospective buyer went to the office of a reputed builder to check out the slew of discounts and freebies being offered this festive season....

Sales tax - if software whether customized or non-customized satisfies Rules as a 'goods', it will also be 'goods' for purpose of Sales Tax: Madras High Court
CHENNAI, OCTOBER 21, 2008 : THE
three writ petitions are filed by the same Company. W.P. No. 38544 of 2005 is filed seeking for a Declaration declaring that unbranded / customized software developed and sold by the petitioner with or without obligation, for system upgradation....

Board Circular not to prevail over Supreme Court Order - It is for Court to declare what particular provision of statute says and not for Executive - A circular which is contrary to statutory provisions has really no existence in law: SC Constitution Bench
NEW DELHI, OCT 20, 2008 : IT'S now probably the final word – Board Circulars not in tune with Supreme Court orders are not valid. The matter had been finally re-decided by the Supreme Court....

Service Tax - Port Services - CENVAT Credit - Steel and cement used for construction of jetty, not entitled; Credit entitled for mobile phone, rent a cab, CHA & Surveyor charges; Air-conditioners are capital goods, entitled for credit: CESTAT
AHMEDABAD, OCT 16, 2008 : THE
appellants are engaged in the providing port services, storage & warehousing services and cargo handling services, which are leviable to service tax....

Accepting order-in-original passed by Commissioner - Chief Commissioner committed mistake in taking decision at his own level for which interest of Revenue cannot suffer - conduct of Chief Commissioner may warrant inquiry at appropriate level: CESTAT
NEW DELHI, OCT 15, 2008 : HERE
is good News for Revenue – the acceptance by Chief Commissioners, of orders –in – original, prior to 11.5.2007 are declared to have no legal sanctity – so all of them can now be reviewed by the Committee of Chief Commissioners and appeals filed in the Tribunal – what more, delay will be condoned....

Service Tax - Sale and Purchase of Mutual Fund Units - Units are goods - not liable for Service Tax: CESTAT
NEW DELHI, OCT 15, 2008 : THIS
appeal by the Revenue is directed against the order-in-appeal setting aside the order of the adjudicating authority by which the refund claim of the respondent had been rejected. The Commissioner (Appeals)...

Service Tax - Chit Funds not taxable under 'Banking and other financial services' - Board Circular quashed: AP High Court
HYDERABAD, OCT 14, 2008 : IN
the writ petitions, the petitioners sought for a mandamus and assailing the correctness of CBEC circular No. 96/7/2007-ST (Reference Code. 034-04) dated 23.8.2007 and proceedings No. HAST 141/2007 dated 18.12.2007 issued by the Commissioner as being....

ST - demanding duty on activity of laying of pipeline interpreting it to be erection, commissioning and installation of a plant is totally misconceived and unacceptable - 'Erection, commissioning and installation' explained: CESTAT
CHENNAI, OCTOBER 13, 2008 : THE
Indian Hume Pipes Co. Ltd. (IHPL), Thanjavur, manufactures pre-stressed concrete pipes (PSC) and clears to Tamil Nadu Water Supply and Drainage Board (TWAD) for use in water supply projects.....

Service Tax - job work, procurement of raw material, packing of finished goods, documentation etc - not management consultant service: CESTAT
NEW DELHI, OCT 10, 2008 : THE
appellants are engaged in the manufacture of oil field equipment. M/s Varco Sara (India) Pvt. Limited is a sister concern of the appellant with some common Directors and under common management....

Service Tax – unjust enrichment - provisions of unjust enrichment as applicable under Central Excise do not apply in service tax cases: CESTAT
BANGALORE, OCT 08, 2008 : THIS
is a Revenue appeal against a very detailed reasoned order by a Commissioner (Appeals) granting refund of Service Tax paid by the assessee which could not be collected from the clients. The Revenue's contention is that the assessee had got themselves registered at Mumbai....

Services provided by outdoor caterer in canteen of manufacturer is an Input Service – CAS-4 aids Larger Bench in settling the issue
MUMBAI, OCT 07, 200
8 : WE recently reported the Tribunal decision in GKN Sinter Metals [2008-TIOL-1518-CESTAT-MUM] wherein the Bench had granted Stay in the matter of ‘Cenvat credit of Service Tax paid on Outdoor Catering Services’ as the issue had been referred to the Larger Bench in the GTC Industries Ltd. case....

ST - shifting or transportation of raw materials, waste materials and finished products from one place to another – not cargo handling: CESTAT
KOLKATA, OCT 06, 2008 : BEING
aggrieved by the first Appellate order dated 30.04.2007 passed by the Commissioner (Appeals) confirming order of adjudication holding that service of shifting/transportation of raw materials, waste materials and....

Tribunal says that Revenue ought not to have been aggrieved against this remand order of the Commissioner(Appeals)
MUMBAI, OCT 04, 2008 : THE
Revenue is aggrieved by a remand order passed by the Commissioner(Appeals). Incidentally, the issue concerns a refund claim of Cenvat credit filed by the respondents in terms of notification 5/2006-CE(N.T) dated 14.3.2006....

ST - For any appeal or application before CESTAT, a minimum fee of Rs 1000 has to be paid; No appeal maintainable against a clarificatory letter issued by an AC; Courts are not supposed to decide academic issues unless necessary for deciding the appeal: CESTAT
NEW DELHI, OCTOBER 03, 2008 : THERE
are two issues involved in this appeal....

Agents who undertake work of courier on behalf of Courier Company – not franchisees – Revenue loses Rs 8 Crore Service tax case: CESTAT
CHENNAI, OCT 01, 2008 : FRANCH
Express Network Pvt. Ltd. (FEN, appellants) is a courier agency with a wide network of above 45 hubs located at various stations in South India....

Service Tax - Computer training institute – Eligible for exemption prior to 16.6.2005 – notification not to have retrospective effect: CESTAT
NEW DELHI, SEPT 25, 2008 : THE
issue is whether the computer training institute providing vocational training would be entitled to benefit of exemption Notification No. 24/2004-ST dated 10th September 2004 as amended for the period from 10/09/2004 to 15/06/2005....

Service Tax – Tour Operator - arranging guide services, monument visit services, porter services, food services and general assistance services also covered by definition of 'tour operator service' – Since every Commissionerate had issued trade notices, longer period of limitation can be invoked: CESTAT
NEW DELHI, SEPT 23, 2008 : THE
Appellant, a sole proprietary concern of Mrs. Usha Jain, a resident of 195, Taj Road, Agra is engaged in providing Tour Operators Service at Agra, Gwalior, Jhansi, Khajuraho and Varanasi....

Service Tax – Outdoor catering – In premises of the client – liable to tax: CESTAT
NEW DELHI, SEPT 22, 2008 : THE
appellant is a caterer and has served food and beverages to the employees of M/s EID Parry (India) Ltd, Alwar as per agreement with the said company....

Tour operators using vehicles as stage carriages – still liable to pay Service tax as tour operator – since Government has issued Section 11C notification, no suppression can be alleged and no extended period can be invoked - CESTAT
NEW DELHI, SEPT 19, 2008 : THE
appellants have some vehicles for which the Regional Transport Authority has issued National permits for tour operations i.e. Tourist Permits. But due to some financial problem, the Appellants are not using these vehicles for operating tours, but are using these vehicles for transport of passengers from Jabalpur to various places up to Nagpur....

Cenvat credit of Service Tax paid on Outdoor Catering Services – Stay granted as matter referred to Larger Bench: Credit of S.Tax on Garden Maintenance Services – No prima facie case – Pre-deposit ordered: Tribunal
MUMBAI, SEPT 17, 2008 : IN the present appeal before the Single Member Bench of the Tribunal, the question is eligibility or otherwise as Cenvat Credit of the Service Tax  paid on Outdoor Catering Services and Garden Maintenance Services, the amounts involved being Rs.1,36,765/- and Rs.14,712/- respectively....

Cenvat credit of Service Tax paid on Outdoor Catering Services – Stay granted as matter referred to Larger Bench: Credit of S.Tax on Garden Maintenance Services – No prima facie case – Pre-deposit ordered: Tribunal
MUMBAI, SEPT 17, 2008 : IN the present appeal before the Single Member Bench of the Tribunal, the question is eligibility or otherwise as Cenvat Credit of the Service Tax  paid on Outdoor Catering Services and Garden Maintenance Services, the amounts involved being Rs.1,36,765/- and Rs.14,712/- respectively....

CBEC directs field formations to conduct survey to identify SEZ units not paying service tax on services provided outside SEZ
NEW DELHI, SEPT 16, 2008 : IN an interesting development the CBEC has asked its field formations to conduct a survey to identify SEZ units which have been providing taxable service to a recipient outside SEZ but not paying service tax duty correctly....

Service received from Foreign Service Provider not having office in India - Liable to tax only from 1.1.2005 - larger period of limitation and penalty justified: CESTAT
NEW DELHI, SEPT 16, 2008 : THE main point of dispute in this case is as to whether during the period from 01/8/02 to 16/6/05, the Appellants received Architect's services from M/s Callison Architecture Inc., U.S.A. (Callison), who do not have any office or business establishment in India and whether the Appellants....

SIM cards imported on payment of Customs duty and Sales tax also paid on sale thereof - SIM card value not addable in Assessable value of service provided - Tribunal
NEW DELHI, SEPT 16, 2008 : THE present appeals were heard by the Tribunal in view of the following remand order of the Bombay High Court....

Service Tax – Scientific and technical service – project report prepared before Service Tax was imposed, though delivered after - no tax: HC
NAINITAL, SEPT 15, 2008 : THE question of law involved in this appeal is as....

Service tax - Classification of taxable service - Services provided in relation to improvement of process technology and economical use of power - classifiable under 'Scientific and Technical Consultancy service' and not 'Management Consultant's service': CESTAT
NEW DELHI, SEPT 12, 2008 : STRANGE are the ways of the Service tax authorities. An assessee having multi-locational offices is engaged in providing taxable services from different locations....

Business Auxiliary Service – argument that since main service is not a taxable service, auxiliary service is also not taxable does not hold water - CESTAT orders Chennai Port Trust to pre-deposit
CHENNAI, SEPT 11, 2008 : THE appellant, Chennai Port Trust, under an agreement entered into with the Southern Railway, undertook the activity of transporting cargo between the dock and the entry point of the Port area. Upto , and from, the said entry point, the railway themselves undertook the transportation directly....

Manufacture involves production, but production may not result in manufacture - Activity of applying anti-corrosion coating on steel bars would amount to providing Business Auxiliary Service: CESTAT
AHMEDABAD, SEPT 11, 2008 : THE appellant is engaged in the activity of applying Fusion Bonded Epoxy Coating on reinforced steel bars supplied by their customers on job work basis....

Service Tax Cenvat Credit - Re-assessment of Input services cannot be done by the receiver’s jurisdictional authorities: Tribunal sets aside order with consequential relief
MUMBAI, SEPT 10, 2008 : WHEN we reported the Stay order of the Tribunal in the present case five months ago, we had quipped – Which way the final decision would go, is anyone’s guess – but we still prefer to wait!

Organizing Golf Tournaments on behalf of 'The Professional Golfers' Association of India' is not taxable under 'Event Management' Service: CESTAT
NEW DELHI, SEPT 09, 2008 : THE adhocism in service tax administration is beginning to take its toll. There is absolutely no organized system in place and there is no system devised to have a uniform classification of services....

Valiant efforts of Counsel for Revenue does not convince Bench - Rs Seven crore demand of Service Tax goes out of harbour - Ship Repair service is not Port Service: Tribunal
MUMBAI, SEPT 08, 2008 : THE
appellants are engaged in the activity of Ship Repairing at the dry dock built by them in an area specified by the Board of Trustees of the Mormugoa Port Trust, at Mormugao Harbour, under an Agreement entered into between them and the Board of Trustees of the Mormugoa Port Trust....

Del-credre agency service is not taxable under clearing and forwarding agent service: CESTAT
AHMEDABAD, SEPT 05, 2008 : THE issue involved in this case is as to whether services of Del-credre agency is covered under the category of Clearing and Forwarding (C&F) agency service and leviable to service tax....

Machinery given on lease - not liable for Service Tax under Banking and Financial service : CESTAT
AHMEDABAD, SEPT 04, 2008 : THE
revenue is in appeal against the order of the Commissioner (Appeals). The respondent assessee, who are engaged in the manufacture of excisable goods had given an extrusion machine on lease under an agreement....

Prima-facie, transaction charges paid to National Stock Exchange cannot be held to be reimbursible amounts from clients - Not excludible from service charges - Pre-deposit ordered: CESTAT
KOLKATA, SEPT 03, 2008: APPELLANT
is a registered stock broking member of National Stock Exchange. In addition to their brokerage they are also collecting transaction charges from their clients....

Applicant primarily providing Security Agency services coupled with other services such as management advice, group auditing and financial planning - Adjudicating authority treating it as single service of Security Agency - Tribunal orders pre-deposit of Rs.15 lakhs considering service tax liability only on security agency services
MUMBAI, SEPT 02, 2008 : HERE
are some extracts from the Board letters issued in the recent past on the subject of classification [and valuation?] of composite services....

Service Tax – notice issued under Sec 74 instead of Section 73 – issue not raised before lower authorities – cannot be raised for first time before HC – no substantial question of law: High Court
CHANDIGARH, MAY 10, 2008 : M/s
Onkar Travels (P) Ltd., respondent in this case, is registered under Service Tax in the category of Air Travel Agent....

Booking orders in India for foreign principal is export of services: CESTAT
BANGALORE, MAY 09, 2008 : THE
appellants filed a refund claim with the Department to the tune of Rs. 9,87,235/- on the ground that the services rendered by them amounts to Export....

ST - All activities of C&F agent not covered under C&F service – Revenue appeal dismissed: HC
CHANDIGARH, MAY 08, 2008 : THE
revenue has filed this appeal challenging the order dated 20-6-2005 passed by the CESTAT raising the following substantial questions of law....

Export of Taxable Services effected prior to 14.03.2006 also entitled for Rule 5 CCR, 2004 refund: Tribunal
MUMBAI, MAY 06, 2008 : TILL
the day the notification 4/2006-CE(N.T) dated 14.03.2006 came on to the scene & substituted the earlier rule 5 of the Cenvat Credit Rules, 2004, only a manufacturer could claim a refund under the said rule....

Security Agency Services – Tax cannot be assessed on assumptions and presumptions - just by looking at returns no one can state whether appellants were paying tax on gross amounts or supervision charges – Demand not hit by limitation: Tribunal
NEW DELHI, MAY 02, 2008 : THIS
is a decision which Revenue would like to treasure for it will help them in arguing all such cases where Limitation is the root cause of their disappointment....

Service Tax – consignment stockist for GAIL – CF Agent? – Matter remanded by Supreme Court
NEW DELHI, APR 30, 2008 : SHORT
question arising in the appeal is whether in the facts and circumstances of this case, the petitioner renders any services so as to incur the liability to pay service tax....

Revenue has a reason to smile - RPG Enterprises Ltd loses Rs 5 Cr Service Tax case – Tribunal upholds demand by holding that they are Management Consultants
MUMBAI, APR 28, 2008 : A
two-year wait has brought cheer for Revenue. We had reported the Tribunal decision [2006-TIOL-385-CESTAT-Mum]....

Service Tax – back office services not IT Services, but BAS – input service credit and refund of unutilized credit eligible – refund cannot be denied just because rules are amended: CESTAT
BANGALORE, APR 25, 2008 : IF
you thought two brains are better than one, this case proves the opposite. If you remember the Rule 5 (pertaining to refund) of Cenvat Credit Rules, was amended by Notification 4/2006-Central Excise (N.T.)....

Construction of residential complexes – main contractor liable to pay Service Tax even if sub-contractor also pays tax; no deductions when tax is discharged under composition scheme: Advance Ruling
NEW DELHI, APR 22, 2008 : LAST week we carried an important order from the Authority for Advance Ruling - 2008-TIOL-03- ARA -ST . The same applicant was before the Authority with another set of four questions....

Service Tax – sale of constructed houses – liable to pay Service Tax under 'construction service' and not under 'works contract' : Advance Ruling
NEW DELHI, APR 17, 2008 : THE
questions before the AAR were 1. Whether the activity of booking the residential units to be undertaken by the applicant is a taxable service liable to Service Tax under the provisions of section 65 (105) of the Finance Act, 1994....

Service Tax - Port services - Velji order of Ahmedabad bench upheld : Supreme Court
NEW DELHI, APR 09, 2008 : IN
Homa Engineering Works - 2007-TIOL-769-CESTAT-MUM, the Tribunal had held that Ship repairs done in port is not a port service : Board Circular not in accordance with law; In VELJI P SONS (AGENCIES) PVT LTD....

Input Service - Assessee manufactures Tractors, 3-wheeler and M.V’s parts - Repair and Maintenance Services incurred on Motor Vehicles provided to employees and officers prima facie entitled as Cenvat Credit : Tribunal
MUMBAI, APR 08, 2008 : DECIDING
the fate of entitlement or otherwise of Cenvat Credit on a variety of “input services” is now becoming as exciting as ever.

Service Tax - Commissioner (A) reducing penalty in terms of Section 80 of Finance Act, 1994 not improper - Following judicial discipline does not mean re-writing of the statute : Tribunal
MUMBAI, APR 02, 2008 : IN
the case of Equator Property Managers Pvt. Ltd. [2007-TIOL-1891-CESTAT-MUM], the Tribunal held that the provisions of section 76 of the Finance Act, 1994 are also subject to the provisions of section 80 of the Finance Act...

Cenvat Credit - Re-assessment of input services cannot be done by the receiver’s jurisdictional authorities : Tribunal
MUMBAI, APR 01, 2008 : IN
the years gone by, modvat disputes were the order of the day. Fortunately, the Cenvat credit rules and the liberal rules of interpretation that came to be followed resulted in these disputes dying a natural death....

Govt extends Service Tax Refund Scheme to three more taxable services for exporters
NEW DELHI, APR 01, 2008 : IN
yet another exporter-friendly step, the Govt has extended the service tax refund scheme to three more taxable services. This is in response to the sustained appreciation of rupee against dollar, and the same hurting our exports....

Money grows in ATM s - Revenue loses another high profile Service Tax case - Introduction of a new entry for purpose of levy of tax presupposes that it was not covered by any of pre-existing entries : Tribunal
CHENNAI, MAR 31, 2008 : THE
assessee had executed contracts awarded by various banks for supply, installation and commissioning of Automated Teller Machines (ATMs) and, accordingly, received their charges from the banks....

Do our policy makers really 'understand' the software industry?
MARCH 28, 2008: By S Sivakumar, CA: A
provocative title for an article, indeed. We must thank the makers of our great Constitution for guaranteeing us the freedom of speech which makes it possible for us to find an appropriate title to write a piece on what seems, the Ministry’s utter lack of understanding of the software industry....

Service Tax: Security Services utilized by appellant for residential colony - whether eligible for Cenvat Credit - Matter remanded as Commissioner(A) has passed a non-speaking order : Tribunal
MUMBAI, MAR 19, 2008 : THE
issue in this appeal before the Tribunal is regarding availment of Cenvat credit on the input service (security agency) utilized by the appellants for residential colony which is adjacent to the factory....

Exempted and dutiable services – common input services - Not maintaining separate records cannot be a ground for denying Input Service Credit in respect of service tax paid on services referred in Rule 6(5) of CCRs, 2004 : Tribunal
MUMBAI, MAR 24, 2008 : RULE 6
of the CCR, 2004 cannot but continue to hog the limelight. Sub-Rule 6(5) of the Cenvat Credit Rules, 2004 reads thus....

Input Service Credit – Since showrooms of manufacturer are the 'place of removal', service tax paid on input services up to that stage are available for Cenvat credit : Tribunal
MUMBAI, MAR 19, 2008 : THE
appellant manufactured shoes in their factory premises and cleared the same on payment of duty to their own retail outlets. For manufacture of such goods....

Increase in Works Contract Service Tax rate to 4% - A case of promisory estoppel?
By S Sivakumar, CA: AT
the time the Composition Scheme was introduced for works contractors in the 2007-08 Budget, it was widely believed that the specified service tax rate of 2% was applicable for the whole of the works contracts covered by the Schem

Food for thought – Service Tax paid by Outdoor Caterers for running Canteen Services in a factory is an Input Service for availing Credit : Tribunal
MUMBAI, MAR 18, 2008 : WE
are hungry. Just three months back, we reported the Tribunal decision in the case of Bajaj Electricals [2007-TIOL-1866-CESTAT-MUM], where the Single Member Bench observed that prima facie there was no case....

Cenvat Credit on input services - the certainty of uncertainty!
NEW DELHI, MAR 14, 2008: IN
2004, in a move towards integration of taxes on goods and services, the Cenvat credit rules were amended to allow credit across goods and services....

Service Tax Return Preparers and best judgement assessment!
MARCH 5, 2008: By V Unnikrishnan: THE
newly inserted section 71 in theFinance Act,1994 as per sub-clause (D) of Clause 85 of the Finance Bill,2008 proposes of enabling an assessee to authorize a Service Tax Return Preparer (STRP) to prepare and furnish the return under section 70....

Film theatres now come under Central Excise control - through Service Tax
MARCH 4, 2008: By TIOL Research Team: SOME
years ago, there used to be central excise duty on electricity produced and during those days, all cinema theatres were under Central Excise control because the officers had to quantify and collect duty on electricity produced through electric generators....

New Service related to supply of tangible goods to open a Pandora's box
MARCH 3, 2008: By S Sivakumar, CA: MR Chidambaram
has managed to come out with a new taxable service, which is bound to crease a lot of controversies. Section 65(105)(zzzzj) is proposed to read as follows....

Let's welcome 'Service Tax Return Preparer' Scheme
NEW DELHI, MARCH 02, 2008 : THE
Customs House Agent has been in place to help importers and exporters attend to clearance formalities of their goods with the Customs.....

Arrear recovery and service tax dispute resolution scheme, 2008
MARCH 2, 2008: By V Unnikrishnan: THE
changes in Service tax law w.r.t GTA services, eligibility of cenvat credit for GTA as an output service; no penalty under section 78 when penalty u/s 76 has been imposed etc. are really pro-assessee and welcomed by all.

Service Tax Dispute Settlement : A Barmecidal feast!
MARCH 1, 2008: By V R Balasubramani & Pradyumna G H, Advocates: THE
Service Tax Dispute Settlement Scheme announced by the Finance Minster in his Budget Speech has not come a day sooner. However, what does the government seek to achieve by extending the scheme to disputes involving a paltry sum of Rs 25,000/-?

Service Tax - Goods Transport Agency is no longer an output service
NEW DELHI, FEB 29, 2008 : CONTROVERSIES
and Service Tax on goods transport seem to be born together. While the first episode of the experiment ended in utter confusion and short sighted amendments, the second avatar is no different.

No Cenvat Credit on service tax paid on outward fright from the Place of removal
NEW DELHI, FEB 29, 2008 : RULE 2(1)
of the Cenvat credit rules has been a subject matter of controversy on the eligibility of Cenvat credit on the goods transport service used for removal of goods from the place of removal.

FM accepts TIOL recommendation; introduces Dispute Settlement Scheme for small service taxpayers
NEW DELHI, FEB 29, 2008 : THE
instant jubilation in the ranks of small and marginal farmers, the salaried class, and the manufacturing sector triggered off by the grand announcements by the Finance Minister cast a shadow of despondency over the service secto

Tribunal orders grant of interest beyond the date of refund just because it’s earlier order was not challenged and had attained finality
MUMBAI, FEB 27, 2008 : SURPRISED
with the caption. Read on....

Service Tax : Solve the Kashmir problem!
MUMBAI, FEB 26, 2008 : EVER
since Independence, we are struck with the Kashmir problem. If the South Block cannot solve the problem, can the North Block do it?

Appellant, a State Finance Corporation, having paid Service tax liability along with interest before issuance of SCN - Provisions of Section 80 of Finance Act, 1994 can be invoked – No cause for imposition of penalty : Tribunal
MUMBAI, FEB 21, 2008 : IT
is good that the provisions of Section 83 of the Finance Act, 1994 concerning Service Tax do not cover under its umbrella the provisions of Section 35B of the CEA’44. Reason being that the second proviso to Section 35B of the CEA’44 stipulates that the Tribunal has the discretion to refuse to admit an appeal if the duty, penalty or fine is less than fifty thousand rupees....

Service Tax – advertising – agency commission received from broadcasting and print media – not taxable : CESTAT
NEW DELHI, FEB 20, 2008 : THE
appellants render taxable service under the category of advertising agency service. They entered into contract with their clients for providing advertisement agency service....

Rental space for keeping, storing, stuffing or consolidation of export cargo into containers – Services prima facie not liable to Tax under Storage and Warehousing Services : Tribunal
MUMBAI, FEB 19, 2008 : MERELY
because an activity is excluded from being charged to Service Tax under a particular category does not imply that the activity is not taxable under some other category – this is the Departmental way of looking at things - inwardly that is!....

No need to reverse credit on GTA service if inputs are returned to the supplier : CESTAT
CHENNAI, FEB 15, 2008 : THIS
is yet another case involving service tax on goods transport service. The assessee availed credit of the service tax paid on Goods transport service used for inward transportation of inputs....

Service Tax paid on outward transportation - Liquid Oxygen, Nitrogen and Medicinal gas delivered to customers in transport vehicles maintained at sub-zero temperatures – Cenvat Credit – As matter referred to Larger Bench, pre-deposit totally waived on Modification application : Tribunal
MUMBAI, FEB 13, 2008 : LAST
November, while reporting the Tribunal decision in Inox Air Products Ltd. [2007-TIOL-1829-CESTAT-MUM], we had mentioned thus....

Service Tax - Export of services - Service providers are eligible for refund of un-utilised credit under Rule 5 of Cenvat Credit Rules even for exports made prior to 14.3.2006, if refund claims were filed after 14.3.2006 : CESTAT
MUMBAI, FEB 12, 2008 : ARE
service providers eligible for refund of un-utilised credit under Rule 5 of Cenvat Credit Rules even for exports made prior to 14.03.2006? ‘YES’, says CESTAT....

Input Services? - Canteen or Catering services provided to employees may be obligatory as per Factories Act but it cannot automatically lead to conclusion that the same relates to business activity – Credit not available : Tribunal
MUMBAI, FEB 06, 2008 : CONSISTENCY
requires you to be as ignorant today as you were a year ago. – Bernard Berenson, Notebook, 1892....

Service Tax – paid for a wrong service does not cease to be Service Tax – rigours of Section 11B applicable for refund - CESTAT
CHENNAI, JAN 31, 2008 : THE
appellants had undertaken maintenance of certain apartments and collected maintenance charges from the apartment owners from April, 2000 to January, 2005....

Management Institute run by charitable trust is not commercial training or coaching centre - Healthcare and education are social services essential to provide minimum quality of life to people of a country : CESTAT
CHENNAI, JAN 25, 2008 : GREAT
Lakes Institute of Management, Chennai (GLIM), conducts Post Graduate Programme in Management (PGPM), a 12 months fulltime Programme and Executive MBA, a part time course.

Employees working on rolls of applicant diverted to undertake manufacturing activities of another company – Prima facie Services provided cannot be held to be taxable as “Manpower Recruitment or Supply agency” : Tribunal
MUMBAI, JAN 23, 2008 : SERVICE
tax has been demanded from the applicants on the ground that they were providing services of ‘manpower recruitment agency’ to M/s Bajaj Organic Chemicals Limited for the period March, 2003 to July, 2006.

Free After Sales Service – Service Tax not payable by dealers as it is 'Free' and the same has already been subjected to Sales Tax : CESTAT
KOLKATA, JAN 22, 2008 : ALL
said and done, it was after all a bad idea to give the administrative controls of Service Tax to the Central Excise department, complained a netizen....

Service Tax – GTA muddle – receipt of goods into factory is input service; clearance of goods from factory is output service? - Consignee factory eligible for credit even if consignor pays Service Tax on goods transport : CESTAT
AHMEDABAD, JAN 21, 2008 : THE
jinxed tax that is Service Tax on GTA, is haunting the tax administration, courts and the hapless assessees for more than a decade....

In an indivisible contract no VAT if Service Tax is paid : Supreme Court
NEW DELHI, JAN 16, 2008 : WHETHER
the charges collected towards the services for evolution of prototype conceptual design (i.e. creation of concept), on which service tax had been paid under the Finance Act, 1994 as amended from time to time is liable to tax under the Karnataka Value Added Tax Act, 2003 is the question involved in this appeal before the Supreme Court....

Service Tax - mechanical transfer of coal from coal face to tippers - does not come under purview of cargo handing service : CESTAT
KOLKATA, JAN 15, 2008 : TWO
identical cases are decided in this appeal....

Service Tax - Even wayside painters would, for an amount, quickly paint out advertisements for anyone who engages them and they would surely not become an 'advertising agency' : CESTAT
NEW DELHI, DEC 27, 2007 : A
good name is to be chosen over great riches. It's tax free! - Anon...

FAQ on FBT applicable to ESOPs scores over FAQ on Service Tax, a poor compilation of pedestrian information in public domain
MUMBAI, DEC 22, 2007 : ''THERE
are better things to do in life; take a walk on the beach, escort your child or grandchild to a mall instead of trying to work your way around the government....

Reimbursements of salaries and infrastructural expenses cannot be said to be amounts
CHENNAI, DEC 20, 2007 : THE
appellants were engaged by M/s ICICI Bank Ltd to market the bank's personal loan products, for which service the appellants employed marketing executives who took up the task of telemarketing, contacting prospective customers, process documentation etc.

Execution of work not included under words, 'advice' & 'consultancy' in definition of Consulting Engineer whether amounts realized for execution of work will be covered under Service Tax Matter referred to Third Member
AHMEDABAD, DEC 19, 2007 : AN
order in Revision was passed by the Commissioner against the Order-in-original passed by Dy. Commissioner (Service Tax) Vadodara....

GTA Service - Cenvat Credit - It is convention that when matter is referred to Larger Bench, Stay of recovery of amount is granted and there is no reason to deviate from such convention : Tribunal
MUMBAI, DEC 18, 2007 : IN
the case of India Cements Ltd. [2007-TIOL-1248-CESTAT-BANG], the Tribunal came to the conclusion that the transportation from the factory to the destination of the buyer becomes an 'outward transportation' & accordingly in terms of Rule 2(1)(ii)....

Service Tax- liability of Indian recipient to pay tax for service provided by foreigner - Indian recipient also liable to pay interest; Revenue wins case with costs : Supreme Court
NEW DELHI, DEC 14, 2007 : THE
KSEB did not pay Service Tax on the services received by it from a foreign service provider. They have no dispute on the Service Tax liability, but they appeal that interest if payable is to be paid by the service provider and not service recipient....

Port providing storage not warehouse keeper - Storage being integral part of port service cannot be taxed separately - if a service is liable to tax, it cannot be held that newly-entered service was covered under any pre-existing service : Cestat
AHMEDABAD, DEC 11, 2007 : THE
appellant is registered as minor port and is rendering the port services. Some intelligence officers of Central Excise and Service Tax visited the premises of the appellant and after investigation came to the conclusion that during the period 16 th August 2002 to 30 th June 2003....

Service Tax - Section 76 is also subject to provisions of Section 80 - Commissioner(A) has discretion in reducing penalty - Revenue appeal dismissed : CESTAT
MUMBAI, DEC 10, 2007 : THE
assessee had neither filed any returns nor deposited the Service Tax collected from their clients. Later, they admitted their tax liability and discharged the same....

Outdoor Catering Services provided in company canteen - does it indirectly assist manufacturing activities? - Cenvat Credit eligibility - Tribunal orders pre-deposit
MUMBAI, DEC 05, 2007: ON
29 th November 2007, the Urban Land Ceiling (Regulation) Act was repealed by the Maharashtra State Legislature in the ongoing winter session at Nagpur....

Stevedoring licence issued by Port cannot be treated as authorization by port under Section 42 of Major Port Trust Act services of loading and unloading of cargo provided by stevedores are not port services : CESTAT
BANGALORE, DEC 03, 2007 : AS per the definition of port service given under the Finance Act...

Service Tax - Air Cargo Agents - whether under BAS - Tribunal refuses to grant out of turn hearing to Revenue
MUMBAI, NOV 30, 2007 : SOME
time back, nearly two years ago to be precise, the omnipresent authority in Service Tax matters called DGST passed an order V/DGST/21-30/Legal/04/2004 dated 13.12.2005 holding that services rendered under IATA Cargo Agency....

Pay out amount received from bank for services rendered chargeable to service tax under head 'BAS' - Matter remanded to Commissioner(A) for deciding it on merits : Tribunal
NEW DELHI, NOV 29, 2007 : REVENUE
is in appeal against the orders of the Appellate Commissioner by which he has set aside the orders of the lower authority.

ST paid on outward transportation - Liquid Oxygen, Nitrogenand medicinal gas delivered in transport vehicles maintained at sub-zero temp - Cenvat Credit prima facie doubtful - Tribunal orders pre-deposit
MUMBAI, NOV 28, 2007 : IN
the case of India Cements Ltd. [2007-TIOL-1248-CESTAT-BANG] the issue was whether Cenvat credit can be taken on the Service Tax paid on goods transport services availed by the appellants for the transport of the final products....

Service Tax - Review vs appeal - AC imposes penalty, Commissioner (A) confirms, CESTAT sets aside, jurisdictional Commissioner enhances penalty, CESTAT sets aside, Revenue appeals to Bombay HC - appeal dismissed
MUMBAI, NOV 20, 2007 : THE
provisions of review and appeal in Service Tax are playing havoc with litigation hungry revenue officers going full steam....

Service Tax - CHA and Steamer Agent cannot be classified under Business Auxiliary Service : Tribunal
BANGALORE, NOV 08, 2007 : THIS appeal arises from Order-in-Appeal confirming Service tax on the Custom House Agent on the ground that they are rendering services of arranging shipment of the export cargo and negotiating the same with shipping lines on behalf of their clients....

ST on Coaching Classes - when language of amending Notification does not restrict exemption only to standard text books sold, notification cannot be whittled down by Circular - Prima facie case for total waiver of pre-deposit of Rs 2.8 Cr : Tribunal
MUMBAI, NOV 6, 2007 : ''CORRECT guidance, well planned and consistent hard work lead to a bright future!" - brags an advertisement of a reputed coaching class splattered on hoardings all across aamchi Mumbai....

Since Service Tax on Scientific or Technical Consultancy services was levied only on July 16, 2001, no tax payable for earlier period under Consulting Engineer's Services : Tribunal
MUMBAI, NOV 01, 2007 : IN
the present case, an Audit was conducted in August 2001 on the records of a 15 year-old bulk drug manufacturer who also had a research and development department recognized by the Department of Scientific & Industrial Research, Govt. of India....

Service Tax - revision order passed by Commissioner after two years - Tribunal cannot review its own order : CESTAT
NEW DELHI, OCT 29, 2007 : HERE
is a strange situation. As per section 84 of the Finance Act, 1994, the Commissioner can review any order passed by any subordinate and pass a revision order. This revision order is appealable to the CESTAT. But there is a condition that the Commissioner cannot pass a revision order after two years of the original order....

Non-inclusion of TR-6 challan issued by GTA as a notified document in rule 9 of CCR, 2004 prior to insertion by Not 28/2005-CE is an inadvertent omission - Credit allowed for past period : Tribunal
MUMBAI, OCT 25, 2007 : AS
if the DGST and the bombastic clarifications issued by it on 30.03.2005 & its withdrawal on 11.04.2005 & the confirmation of this withdrawal by its letter dated 03.04.2006, all pertaining...

Unitisation, strapping, packeting or packing customers' goods at their premises or sites - taxable under 'cargo handling service : Tribunal
KOLKATA, OCT 24, 2007 : THE
Appellants are engaged in the business of material handling equipment and parts thereof and they also carry out activities like unitisation, strapping, packeting or packing, the customers' goods at their premises or sites...

Collection of blood samples on behalf of principal lab is not Business Auxiliary Service : High Court
CHANDIGARH, OCT 23, 2007 : THIS
appeal filed by the revenue challenges order dated 30.08.2006, passed by the Customs, Excise and Service Tax Appellate Tribunal, holding that the services rendered by the assessee respondent do not fall in any of the category specified in the definition of 'Business Auxiliary Service' as per Sub-section 19 of Section 65 of the Finance Act, 1994....

Whether a contract for construction is works contract on a turnkey basis and not a consultancy contract - conflicting decisions - matter referred to Larger Bench of Tribunal
MUMBAI, OCT 19, 2007 : THE
brief facts of the case are that the respondents who are engaged in providing taxable services of storage and warehousing, port services and consulting engineering services, filed a claim for refund of Rs.11,27,498/- under the head....

Service Tax - Advertising Service - Incentive received from media, not taxable : Tribunal
NEW DELHI, OCT 18, 2007 : THE
appellants were covered under the category of advertising agencies. The Audit found that they had collected incentives from M/s. Malayala Manorama. The Revenue has considered these receipts as extra commission and had proceeded to recover Service Tax on these amounts by invoking larger period....

ST - if appeal is not filed within time limit, a legal right accrues to other side that issue reached finality - Such legal right cannot be simply brushed aside by filing application after one year and to condone the delay on ground that similar issue is pending before SC : Madras HC
CHENNAI, OCT 17, 2007 : THE
Revenue Department's urge for litigation is unimaginable. Look at this case. The Commissioner accepted an order passed by the Commissioner (Appeals). After about 10 months he gets a letter from his boss....

Gold smith - Technical Certification Services? - Stay granted by Tribunal
CHENNAI, OCT 11, 2007 : INGENUITY
of the Department in exploring new areas of taxation, knows no bounds. You go to a Bank for a loan pledging your gold ornaments and you fin d a goldsmith there to test the purity of the gold....

Mighty department demands Rs 4,650 as service tax from an 81 year old as consulting engineer - CESTAT vacates demand
CHENNAI, OCT 10, 2007 : HE
must be 21 years when India attained freedom. But age can not be a reason for giving any relaxation from the tax or giving any special treatment, may be except some discount on railway fare under senior citizen category....

ST - Appellants appointed as commission agents to procure orders - Not warehousing goods or taking care of clearance of goods from manufacturer's place - not C & F agent : Tribunal by majority order
NEW DELHI, OCT 08, 2007 : FOR
the period 1999-2000 to 2003-December 2004, the appellant’s records were scrutinized by the C.Ex. authorities and a notice was issued directing the appellant to show cause....

GTA service during period Nov 16, 1997 to June 1, 1998 - SCN issued in 2002 is not valid for period extended by SC : Tribunal
NEW DELHI, OCT 06, 2007 : YET
another GTA case - the period of dispute is from 16-11-1997 to 1-6-1998 and the amount involved is a princely sum of Rs. 9,981/- for which the mighty Revenue is in appeal....

Explanation to Clause 82 of Finance Bill, 2005 comes to rescue - Appellant not liable to interest and penalty : Tribunal
MUMBAI, OCT 05, 2007 : THE issue before Tribunal was whether the appellants were liable to pay interest on the confirmed duty demand of Rs.1,29,212/- and also liable to penal action....

Services used at site of windmills cannot be held as input services by unit in Jamnagar - Cenvat Credit not available : Tribunal
AHMEDABAD, OCT 03, 2007 : THE
relevant facts of the case are:
a) The appellant has a manufacturing unit at Jamnagar. They had set up windmills at a place Kurunga, about 100 kms. away from their factory....

Service Tax - AC cannot rectify an order after Commissioner (A) has dismissed appeal - Commissioner (A) also cannot rectify that order as his earlier order was not challenged : Cestat
AHMEDABAD, OCT 01, 2007 : THE
Assistant Commissioner imposed penalty for delayed payment of Service Tax. The Commissioner (Appeals) dismissed the appeal for non-compliance of pre deposit....

Boilers supplied on lease contract - Interest collected from buyers on unpaid amount of credit not chargeable to service tax under head 'Banking and Financial Services' - clause (Viii) of Explanation 1 to Sec 67 clarificatory in nature : Tribunal
MUMBAI, SEPT 28, 2007 : THE
appellants are registered manufacturers of Industrial boilers, heaters, pollution control equipments, heat pumps, chillers etc. They are also registered under Service Tax for providing services under the five categories viz....

Collection of blood samples on behalf of principal lab, not Business Auxiliary Service - it is technical testing and is excluded from service tax by definition which excludes testing for human beings or animals : HC
CHANDIGARH, SEPT 27, 2007 : THERE
is a lab known as M/s Dr. Lal Path Lab (P) Ltd., Collection Centre at ST1: CITY Ludhiana, which is engaged in the collection of blood, urine and stool samples on behalf of its Principal M/s Dr. Lal Path Lab (P) Ltd, New Delhi for....

Custom House Agent cannot be classified under Port Services - Every licensed person cannot be brought under net of port services : Tribunal
AHMEDABAD, SEPT 26, 2007 : THE
appellant is engaged in the activities of Customs House Agent services and holds a valid licence from the Customs under the provisions of Customs House Agent Licensing Regulations....

Institute of Banking Personnel Selection is not a commercial concern -Service Tax demand of more than Rs one crore set aside by Tribunal
MUMBAI, SEPT 20, 2007 : IF
BCCI [2007-TIOL-684-CESTAT-MUM] & Breach Candy Swimming Bath Trust [2006-TIOL-1468-CESTAT-MUM] are not commercial concerns, then how can Institute of Banking Personnel Selection (IBPS) be one!

Delay in payment of service tax - imposition of penalty u/s 76 justified - Tribunal should not have interfered : Karnataka HC
BANGALORE, SEPT 14, 2007 : THE
appeal by Revenue before the High Court is against the CESTAT order reducing the penalty, for non-payment of Service Tax. The Adjudicating authority imposed a penalty of Rs.3,03,300/ @Rs.100 per day....

Credit on input service - Outward freight - Gujarat Ambuja disagreed with - referred to Larger Bench
BANGALORE, AUG 30, 2007 : THE
Delhi Bench of the Tribunal had in Gujarat Ambuja case held that outward freight is not input service. We had carried many comments and articles on the issue. Now the Bangalore Bench has taken a different view....

Parliament has legislative competence to levy service tax on CAs, Cost Accountants and architects - Professional tax and service tax operate in different spheres : Supreme Court
NEW DELHI, AUG 23, 2007 : THIS
appeal questions the competence of Parliament to levy service tax on practising chartered accountants and architects having regard to Entry 60 List II of the Seventh Schedule to the Constitution and Article 276 of the Constitution....

Service Tax - User fee collected by airport from international passengers not liable to tax under airport services - in fact no service at all provided to passenger : CESTAT
BANGALORE , AUG 22, 2007 : THE
appellant M/s. Cochin International Airport known as CIAL are providing various services to air passengers and have been registered with the Central Excise department.....

Service Tax - Commission received from foreign airlines in Indian rupees - not export of service; failure to file return was enough to invoke extended period under old Sec 73 : Tribunal
CHENNAI, AUG 21, 2007 : THE
dispute is service tax on "Overriding Commission" (ORC) received by the appellants in Indian currency from Malaysian Airlines who had appointed the appellants as "General Sales Agent" (GSA) for India....

Service Tax - Cellular Telephone Service - Credit on cell site towers or parts of towers and pre-fabricated shelters prima facie available : Tribunal
MUMBAI, AUG 16, 2007 : CELLULAR
companies raised a toast on 9 th September 2005 when the Tribunal pronounced its order - " Cell site/BTS site/BSC site are not excisable - the activity of installing and commissioning a cell site cannot be an activity of manufacture....

Credit is allowable of service tax paid by Commission agents since they prima facie promote sale of manufactured goods : Tribunal
MUMBAI, AUG 14, 2007 : THE
brief facts of the case are that the applicant is engaged in the activity of manufacturing as well as trading of footwear and its accessories. In addition to manufacturing and selling such footwear, the applicant also trades in shoes manufactured....

Appellate authority has not given any reasoning to set aside penalties imposed u/s 78 of Finance Act, 1994 - Point of limitation can be taken at any time - Matter remanded by Tribunal
MUMBAI, AUG 3, 2007 : THE
brief facts of the case are that the respondents are provider of services as "Stock Broker". The respondents got registered and were paying Service Tax on the stock broking activities till June 96.....

Yet another overlap of services - 'Interior decoration' or 'finishing services under commercial construction service'? Cestat orders pre-deposit of Rs 10 lakhs
BANGALORE, AUG 2, 2007 : CLASSIFICATION
of the services is going to be the major area of disputes in Service Tax. With 100 services in the tax net and without any codification of the services, the correct classification of any particular service is bone of contention between....

Service Tax paid on GTA service during 1997-98 - No refund : Tribunal
NEW DELHI, JULY 31, 2007 : THE
contention of the appellant was that, the amounts of Service Tax were paid under protest in respect of the service of Goods Transport Operators for the period between 16.11.1997 and 02.06.1998, and that the said amounts....

ST - Courier Service - No requirement of payment in FC before June 16, 2005 - No tax leviable for export of services - Penalty of Rs 4.5 Cr is a savage one - Adjudicating authorities cannot go only by Board clarification : Tribunal
BANGALORE, JULY 30, 2007 : THE
appellants are providing taxable services under the category of "Courier Agency Services". Revenue proceeded against them on the ground that they did not pay Service Tax for the period from 15.3.2005 to 15.06.2005....

Service tax on international in-bound roamers - whether exempted or hit by provisions of Rule 6(3)(c) of Credit Rules - Tribunal directs Hutch to pre-deposit Rs 40 lakh in cash for obtaining stay
NEW DELHI, JULY 27, 2007 : A
demand of Rs 2.60 crores was confirmed by the Commissioner of Customs & Central Excise, Meerut-I on 31 st January 2007 against the above Service provider. It is alleged that the assessee had incorrectly availed Cenvat Credit of Rs.81.89....

Cestat orders Idea Mobile Communications to pay Rs 50 lakhs for getting stay in Service Tax case
NEW DELHI, JULY 25, 2007 : THE
CCE, Meerut, passed an order in January 2007 confirming a demand of Rs.1.74 crores on the ground that the mobile communication company had wrongly taken/availed/utilized Cenvat credit on the inputs service received on the basis of....

Highly aggrieved Tata Technologies finds solace in Tribunal order - Rs 1.77 Cr Service Tax demand set aside
MUMBAI, JULY 18, 2007 : HAD
it not been for the Tribunal making such a remark, we would not have known that Tata Technologies was highly aggrieved with what appears to be a routine confirmation of duty demand by the Commissioner of Central Excise.....

Services from foreign service provider - legality of tax by Indian receiver prior to Jan 1, 2005 - matter likely to go to LB - partial stay granted by Tribunal
NEW DELHI, JULY 12, 2007 : THE
Foreign Service controversy is still on. A little history. As per Section 68(2) of the Finance Act, 1994, the government can notify any person other than the service provider to be the tax payer for the notified services....

Service Tax - GTA during 1997-98 - tax was payable by recipient during the time - penalty waived : Cestat
NEW DELHI, JULY 06, 2007 : THE
ghost of Service Tax on GTA refuses to leave our hallowed portals of law....

Consignment agent performing some functions of clearing and forwarding is a C & F agent - The loud thud of a drum cannot erase the soft whispers of a flute which also forms a part of orchestra - Tribunal goes musical!
NEW DELHI, JULY 05, 2007 : IN
an order replete with musical analogies, and apparently music to the Revenue, the Tribunal allowed a Revenue appeal. But what is music to one may be a jarring note the others....

ST - operating and maintaining power plant does not involve taxable services of management or engineering consultancy, C and F or BAS - Generation of electricity is within the meaning of manufacture under Central Excise : CESTAT
CHENNAI, JULY 04, 2007 : RUNNING
of power plant - is it covered under 1) management constancy, 2) engineering consultancy....

Maersk India gets reprieve - Tribunal grants Stay from recovery of Rs 18 Cr Service Tax demand and Rs 25 Cr penalty
MUMBAI, JULY 03, 2007 : THE
appellants had claimed the benefit of the exemption notification no. 6/99-ST and notification no. 21/2003-ST on the ground that they had received payment for taxable services rendered by them in convertible foreign exchange....

Will taking photographs for voter identity cards, and bus passes fall under scope of photography service? CESTAT grants stay and full waiver
BANGALORE, JUNE 18, 2007 : SOMETIMES
the angle from which the service is rendered may play a vital role in deciding the service tax liability. Take this case of an appellant from whom the revenue demanded nearly Rs 41 lakhs as service tax under the photography service....

Will taking photographs for voter identity cards, and bus passes fall under scope of photography service? CESTAT grants stay and full waiver
BANGALORE, JUNE 18, 2007 : SOMETIMES
the angle from which the service is rendered may play a vital role in deciding the service tax liability. Take this case of an appellant from whom the revenue demanded nearly Rs 41 lakhs as service tax under the photography service....

Unloading and transferring of LPG gas from ship to tanks, cannot get attracted under Services of Storage and Warehousing : Tribunal
MUMBAI, JUNE 15, 2007 : THE
brief facts of the case are that the appellant had constructed their own Jetty in Ratnagiri Dist. and was operating from there in the capacity as an importer and importing raw materials for use in the manufacture of their final products....

No service tax on services rendered abroad before April 18, 2006 : Tribunal
AHMEDABAD, JUNE 14, 2007 : IT
has finally come! There is no Service Tax on services rendered abroad. In a landmark judgement, the Ahmedabad Bench of the Tribunal has held that services received by Indians abroad are not taxable prior to 18.4.2006 when Section 66A was inserted into the Finance Act, 1994....

Service Tax - Hire purchase and hire purchase financing are not synonymous - Hire purchase finance not covered by Finance Act, 1994 - Bajaj Auto Finance wins Rs 26 Cr case in Tribunal
MUMBAI, JUNE 13, 2007 : SIX
months ago, we broke the story that the Tribunal in the case of Bajaj Auto Finance [2006-TIOL-1473-CESTAT-MUM] has granted waiver of pre-deposit of Service Tax of Rs 26 crores by opining that prima facie, hire purchase and hire purchase financing are not synonymous....

Ship repairs done in port is not a port service : Board Circular not in accordance with law : Tribunal
MUMBAI, JUNE 11, 2007 : IF
Finance Bills, especially the provisions relating to imposition of new taxes, are passed by the august houses of Parliament in a routine manner without any discussion, there will never be a chance for the citizens of India....

India International Centre is not a Mandap Keeper : Cestat
NEW DELHI, JUNE 08, 2007 : THE
appeal is against the order whereby demand of service tax was confirmed and penalties were imposed on the ground that appellants were providing services as Mandap keeper....

Another service tax demand bites dust - Since service tax liability on Works Contract is brought into tax net from 2007, it can be argued that these services were not to be taxed earlier : Tribunal
AHMEDABAD, JUNE 06, 2007 : IF
one were to conduct a study on the reasons for the department losing Service Tax cases in the Tribunal, apart from all other creative demands that saw their death, one reason that occupies the coveted slot is premature demands....

Service Tax on outward freight - a doomed credit?
NEW DELHI, JUNE 05, 2007 : IT's
almost over, the Tribunal has again held that a manufacturer is not eligible to take credit of the Service Tax paid on outward transport of his goods....

Since appellant manufactures and removes concentrates for which no advertisement is undertaken they are not entitled to take credit of service tax paid on advertisement of aerated waters : Tribunal
MUMBAI, JUNE 01, 2007 : THE
appellant is engaged in manufacture of concentrates of non alcoholic beverages base. The same are being cleared by them on payment of duty to various bottlers for manufacture of aerated waters/beverages....

ST on construction of power project - Drawing and design part of contract not taxable as 'engineering consultancy' - Rs 20 Cr demand stayed
NEW DELHI, MAY 29, 2007 : THE
appellant submits before CESTAT that....

Howzzzzzzat! BCCI emphatically wins Rs 30 Cr Service Tax case - Not a commercial concern and selling telecast rights is not advertising : Tribunal
By TIOL News Service

MUMBAI, MAY 24, 2007 : OUR
cricketers may not be doing all that well, but the richest sports body in the world, the BCCI is doing fine. It has just won a Rs 30 Cr case....

CBEC notifies new Services from June 1; Industry given option to pay service tax on 2% of total value of works contract; Property tax abatement given for ST on immovable property
NEW DELHI, MAY 22, 2007 : THE
CBEC has today notified the seven new Services brought under the tax net from June 1, 2007. A week's time has been given to the service providers to get familiar with the provisions of the law for better complian

Neither Act nor Rules grant any immunity to foreign service provider from service tax for taxable services provided in India - Liability of recipient to pay ST cannot arise merely from income tax being deducted at source : Tribunal
NEW DELHI, MAY 21, 2007 : IN
a judgment that can have far-reaching consequences, the Tribunal has held as above....

Credit can be utilised for payment of Service Tax on GTA Service received for clearance of final products from factory : Cestat
CHENNAI, MAY 16, 2007 : WITH
the issuance of recent 37-B order by CBEC on GTA service, it is believed that the litigation on GTA service came to an end, but it appears that the litigation is far from over....

CBEC decides to bury 48 Service Tax Circulars and Instructions on recommendation of Rustagi Committee
NEW DELHI, MAY 10, 2007 : TAKING
the T R Rustagi Committee report on review of Service Tax Circulars to a logical end the CBEC has today decided to withdraw 48 Circulars, Clarifications and Instructions issued on matters of service tax law and procedures in the past....

Service Tax case of management consultant Mckinsey India - OPE abatement - Tribunal upholds demand of Rs 1.09 Cr; drops Rs 4.46 Cr and remands demand of Rs 1.79 Cr
MUMBAI, MAY 03, 2007 : IN
October 2005, while reporting this case [2005-TIOL-939-CESTAT-MUM] when it had come before the Tribunal for stay, we had opined that only the coming days would foretell what the future holds for this Management Consultant....

Once Service Tax amount is being collected from customers, it cannot be said that there is a financial problem in paying the same to Revenue - penalty enhanced by Tribunal
MUMBAI, APR 30, 2007 : THIS
case should bring cheers to the Revenue. Truly speaking, the appeal itself would have been thrown to the bin for it was badly delayed by 104 days, but the Tribunal was satisfied with the cause of delay....

Service Tax - GTA - Can service tax be paid from Cenvat Credit? Yes, affirms Cestat
NEW DELHI, APR 27, 2007 : A
manufacturer paying excise duty and availing cenvat credit also pays Service Tax on goods transport for his inward and outward movement of goods. Whether he is eligible for credit of Service Tax paid for outward transport is a contentious issue. But the issue here is different....

Revenue wins big case; Service tax on outward freight - no cenvat credit; says Cestat
NEW DELHI, APR 24, 2007 : THE dispute in the appeal is in regard to service tax paid on the freight incurred on the transportation of cement sold by the appellant. The sale is on FOR destination basis and freight is paid by the appellant....

Marketing Development is 'business auxiliary service, not 'management consultancy' : Cestat
NEW DELHI, APR 19, 2007 : THE appellant Glaxo Smithkline Consumer Healthcare Ltd entered into an agreement on 18th January 1996 with their group company Glaxo Smithkline Asia Pvt. Ltd., formerly known as Smithkline Bichem Asia Pvt. Ltd....

Once bitten, I am not shy, would like to be bitten again - Service Tax - Evidence in the form of data on Compact Disc is admissible : Tribunal
MUMBAI, APR 17, 2007 : SEVEN months ago, we had while reporting the decision of the Tribunal in the case of CCE & ST, Bangalore vs. Standard Chartered Bank [2006-TIOL-1162-CESTAT-BANG], introduced the story with the following words - "This case has all the circus that only Revenue can perform....

Colgate Palmolive directed to deposit Rs 50 lakh in Cenvat Credit 'Input service distributor' case by Tribunal
MUMBAI, APR 13, 2007 : PROBABLY
this is the first case concerning cenvat credit passed on by an Input Service Distributor to the manufacturer and the scope of its utilization in the context of rules 2(1) & rule 6 of the Cenvat Credit Rules, 2004....

Commercial or industrial construction service - Abatement - Does value, include cost of free materials supplied by client? - Interim stay granted : Madras HC
CHENNAI, APR 10, 2007 : AS per Notification No. 1/2006- Service Tax, Dated: March, 1, 2006, for construction service, an abatement of 67% from the value is allowed for calculating the tax payable....

No service tax and excise duty for same activity - transmission apparatus for radio telephony not excisable : Tribunal
CHENNAI, APR, 05, 2007 : AIRCEL
imported various components under an agreement with ECPL to install and integrate a system for providing radio telephony...

Service Tax - Mutual Funds can be regarded as 'goods' so as to be covered under Not 13/2003-ST - Matter remanded by Tribunal
MUMBAI, APR 04, 2007 : THE
appellant is a registered Service Tax assessee under the category "Business Auxiliary Services". They filed a refund claim on the ground that the commission received from sales of Mutual funds is entitled for exemption from....

Sale of SIM cards - Transaction being accepted by assessee to be a sale of goods - Question of considering the activity as BAS cannot be considered - Service Tax cannot be levied on value of SIM cards : Tribunal
MUMBAI, APR 03, 2007 : THE
appellants herein are providers of cellular telephone services which services are covered by the definition under section 65(74) of Chapter V of the Finance Act, 1994, as amended....

Prima facie, services beyond the stage of manufacturing and clearance of goods from factory could not be input services : Tribunal
AHMEDABAD, APR, 02, 2007 : THE
applicant is a manufacturer of cement and clinker and was availing Cenvat credit of duty paid on inputs, capital goods and input services, under Rule 3 of the Cenvat Credit Rules, 2004, On scrutiny by the department, it was noticed

Reliance Telecom heaves a sigh of relief - Tribunal holds no telegraph authority can be treated as subscriber of another telegraph authority for link established between one authority and another
AHMEDABAD, MAR 30, 2007 : RELYING
on its own judgement in the of Fascel Ltd case (2007-TIOL-208-CESTAT-AHM), the Ahmedabad Bench of the Tribunal has reiterated that....

Service Tax - Appeal filed by DC and the order passed by Commissioner (A) on that appeal is a nullity : Tribunal
MUMBAI, MAR 23, 2007 : HAPLESS
- this word can aptly sum the feeling of the Ld. DR who represents the Revenue's case in appeals filed by the parties...

Service Tax - Abatement - Denial of Cenvat credit is not discriminatory - Not 1/2006 is valid and does not enhance tax liability : Karnataka HC
BANGALORE, MAR 19, 2007 : THE writ petitioner is engaged in the service of construction of complexes attracting Service Tax. He is challenging the Notification No. 1/2006 ? Service Tax dated 1.3.2006 in as mush as it disallows the cenvat credit....

Service Tax - Photography services - Valuation - If certain goods are consumed, then value of these goods cannot be included in value of services for levy of tax : Tribunal
BANGALORE, MAR 15, 2007 : THE
appellants render Photography service, which are liable to Service Tax under the Finance Act, 1994. The issue involved in all these appeals is the correct valuation of the services rendered by the appellants for the purpose of discharge of Service Tax....

An indication of things to come - Tribunal refuses to condone delay in filing service tax appeal of 208 days
MUMBAI, MAR 13, 2007 : OUR
two Budget stories concerning the drastic reduction in Review period for Customs & Central Excise cases evoked stinging criticism from some quarters and appreciation from some for highlighting the difficult times the departmental officers are going through in these non-sensitive "sections"....

Should Press Trust of India pay Service Tax?
NEW DELHI, MAR 11, 2007 : A
netizen recently brought to our notice that India's premier news agency - "Press Trust of India (PTI)" was selling online photographs of important day's events through its website www.ptinews.com....

Levy of Service Tax on Tour Operator held legal by Karnataka HC
BANGALORE, MAR 06, 2007 : THE
Appellant is a tourist operator operating in South India. The Union Government imposed service tax on the tour operators. Pursuant to that, notice was issued to the Appellant to register under Section 69 of the Finance Act, 1994....

Service Tax - Appeal filed by DC and the order passed by Commissioner (A) on that appeal is a nullity : Tribunal
MUMBAI, MAR 23, 2007 : HAPLESS
- this word can aptly sum the feeling of the Ld. DR who represents the Revenue's case in appeals filed by the parties....

Service Tax - Abatement - Denial of Cenvat credit is not discriminatory - Not 1/2006 is valid and does not enhance tax liability: Karnataka HC
BANGALORE, MAR 19, 2007 : THE
writ petitioner is engaged in the service of construction of complexes attracting Service Tax. He is challenging the Notification No. 1/2006 ? Service Tax dated 1.3.2006 in as mush as it disallows the cenvat credit....

Service Tax - Photography services - Valuation - If certain goods are consumed, then value of these goods cannot be included in value of services for levy of tax : Tribunal
BANGALORE, MAR 15, 2007 : THE
appellants render Photography service, which are liable to Service Tax under the Finance Act, 1994. The issue involved in all these appeals is the correct valuation of the services rendered by the appellants for the purpose of discharge of Service Tax....

An indication of things to come - Tribunal refuses to condone delay in filing service tax appeal of 208 days
MUMBAI, MAR 13, 2007 : OUR
two Budget stories concerning the drastic reduction in Review period for Customs & Central Excise cases evoked stinging criticism from some quarters and appreciation from some for highlighting the difficult times the departmental officers are going through in these non-sensitive "sections"....

Levy of Service Tax on Tour Operator held legal by Karnataka HC
BANGALORE, MAR 06, 2007 : THE
Appellant is a tourist operator operating in South India. The Union Government imposed service tax on the tour operators. Pursuant to that, notice was issued to the Appellant to register....

Service Tax - Much ado about nothing!
THE Budget fever this year was significantly focused on service tax. There were news reports about 44 new services; service tax on actors with liability on producers; service tax on lawyers; service tax deduction at source; increase in rate of service tax; etc....

Service Tax on Works Contract : A coffee - toffee tussle in the offing!
IN our triology on simultaneous levy of sales tax and service tax, we have elaborately dealt with the issue of levy of service tax on Works contracts. Relying ofn the Apex Court judgement in the case of BHARAT SANCHAR NIGAM LTD Vs UNION OF INDIA (2006-TIOL-15-SC-CT-LB)....

FM stresses on inclusive growth, keeps tax rates largely unaltered; hikes exemption limits for small service providers and SSI units
NEW DELHI , FEB 28, 2007 : BHARAT
Nirman and agriculture reverberated the Lower House today. The Finance Minister was magnanimous enough to bring a glee to the common man, much burdened with high prices and lower productivity....

No hike in Service Tax rate but 50% hike in education cess
NEW DELHI, FEB 28, 2007 : GOVT
bids adiu to Rs 2 lakhs service Tax assesses. 2 Lakh more assesses may join the club. SSI exemption limit enhanced to 8 Lakhs from the present 4 Lakhs....

Service Tax - Mechanical and statistical disposal of appeal by Commissioner (A) - Remanded for passing speaking order
KOLKATA, FEB 22, 2007 : A Commissioner (Appeals) passed a common appellate order in respect of three assessees in respect of penalties. And strangely Revenue is in appeal before the Tribunal....

Fascel wins Rs 16 Cr case - Inter connectivity is not liable to service tax - No telegraph authority can be treated as subscriber of another telegraph authority in relation to link established between one to another authority : Cestat
AHMEDABAD, FEB 14, 2007 : THE demand was Rs. 16 Crores and so was the penalty. The issue is Service Tax for inter connectivity provided by telephone companies....

Commissioner's notice instead of review not proper - no larger period for subsequent notices : Cestat
BANGALORE, FEB 08, 2007 : THE facts are strange.
An Assistant Commissioner, Service Tax passed an order in 2003 whereby he dropped proceedings against the assessee appellant. The Commissioner was aggrieved and as per law, he could have reviewed the order. Instead of doing that he issued a Show Cause Notice alleging suppression and invoking the larger period, which he promptly confirmed. The matter is before the Tribunal....

Service Tax ? Security Agency ? In guise of rectification of mistake, entire complexion of the order cannot be altered under section 74 of the Finance Act ? CESTAT
BANGALORE, FEB 07, 2007 : STRANGE are the ways of Revenue ? in harassing poor victims for small amounts of money. Cost of litigation is never an issue with the government. Here is a case where a small company formed to help poor ex-service men, was hauled up by Service Tax and the determined soldier had to go all the way up to the CESTAT to get justice....

Refund of Service Tax erroneously paid - In case of mutual mistake committed by Appellant and Revenue, Sec 17 of Limitation Act applies and not Sec 11B of Excise Act : Tribunal
MUMBAI, FEB 05, 2007 : INits eagerness to expand the coverage of Service Tax, the Central government has been re-defining a number of services notified in Section 65 of the Finance Act, 1994. On occasions, this exercise results in utter chaos and the benefit usually goes to the service provider based on the argument that the effect of amendment would be prospective only....

Multi System Operator is liable to pay Service Tax : P&H High Court
CHANDIGARH, FEB 01, 2007 : THE writ petition seeks quashing of demand of service tax on the ground that service tax was not leviable on 'Multi System Operator' (MSO). The High Court observed....

Service Tax - Merely because stay application was dismissed does not mean that the appeal is dismissed : Cestat
MUMBAI, JAN 31, 2007 : ANXIETY is a common human quality. This is what precisely happened in the following Service Tax case we are reporting....

When Service Tax is not payable, no return needs to be filed - penalty set aside : Cestat
CHENNAI, JAN 30, 2007 : THE appellant in this case received technical know-how from its collaborator M/s. Halla Climate Control (HCC), Taejon, South Korea. It was felt that they had to pay Service Tax under the category of 'Consulting Engineer Service' on the technical know-how fees paid to HCC. However the lower authorities dropped the demand based on Notification No. 18/2002, dated 16.12.2002, which says....

Service Tax - international courier - before reversing a decision, a show cause notice is mandatory : Tribunal
The appellant is engaged in the business of International Courier....

Service Tax - Ongoing activity - no advance ruling, says Authority
NEW DELHI, JAN 23, 2007 : THE applicant Orissa Chrome Export and Mining Company Limited filed this application seeking advance ruling on the following questions.

Tribunal lambasts Revenue, respondent's counsel and says it does not understand why the Tribunal passed the earlier order!
MUMBAI, JAN 12, 2007 : FRANKLY speaking, we do not know whether we should report this Order of the Tribunal although it has been released for publication under rule 27 of the CESTAT (Procedure) Rules, 1982. The reason being it blames the system altogether, the Revenue, the Respondent & so also the Tribunal and has something more....

Licensing 'know how' is not service but technical assistance connected with know how is consulting engineer service : Cestat
NEW DELHI, JAN 08, 2007 : THIS
judgement is a classic treatise (the briefest possible) on the concept of intellectual property rights in relation to "know how". Justice Abichandani, President of the CESTAT is an expert scholar in such technical laws, about which he has written extensively. This judgement offers a glimpse of his expertise and erudite command over the subject....

AC's magnanimity in imposing only Rs 100 as penalty u/s 76 by holding that there is no reference to the number of days of delay is improper : Tribunal
MUMBAI, JAN 03, 2007 : THE Assistant Commissioner who adjudicated a Service Tax case in August 2004 against the company by confirming the demand of Rs.27,568/- and interest of Rs 10,495/- felt that section 76 of the Finance Act, 1994 had a small defect inasmuch as he observed that the section mandated a minimum penalty of Rs.100/- only, even though there was a delay of 134 days. This was because the section did not make a reference to the number of days of delay as far as minimum penalty was concerned but it was only the upper penalty level of Rs.200/- that required the penalty to be computed on the number of days of delay. He accordingly imposed the minimum penalty of Rs 100/- only.

Purchasing from manufacturer and selling same to customers by advertising and deploying trained labour is not subject to service tax as C & F Agent : Tribunal
MUMBAI, DEC 28, 2006 : THIS act of the Revenue can be best summarized as - barking at the wrong tree ! [Pun intended]....

Service Tax on construction - overseas Holding company owns less than 99% shares in Indian subsidiary - not eligible for Advance Ruling
NEW DELHI, DEC 20, 2006: APPLICANT seeks advance ruling under Sec 96C of the Finance Act, 1994. It claims to be a wholly owned subsidiary of a foreign company located in Malaysia. The Holding Company holds 97.31% of paid up equity in the applicant company. The Holding Company got a contract of construction work in Delhi and the same contract was sub-contracted to the applicant. The applicant also states that the construction work is in progress....

'Cargo' means carriage of luggage in ship, vessel or aircraft - transporting coal from wagons to thermal power station by conveyor belt is not cargo handling service - not liable to service tax : High Court
JODHPUR, DEC 18, 2006 : THE
petitioner was awarded a contract of unloading of coal through W.T. System, stacking/reclaiming of coal to S/R System and feeding of coal to boiler bunkers through conveyor system by order dated 29th March, 2004. The petitioner has been carrying the said contract for the Rajasthan Rajya Vidyut Utpadan Nigam from 29th March, 2004. They were asked to get registered under Service Tax as "cargo handling agency" which is under challenge before the High Court in writ petition....

Under-valuation and service tax demands raised and confirmed simultaneously on drawing, design and devt charges - Tribunal seeks pre-deposit for undervaluation but prima facie sees no case in service tax
MUMBAI, DEC 13, 2006 : THE
other day, an officer from the department jocularly remarked - In cases of valuation disputes, we give two demand notices, one alleging under-valuation and the other asking the assessee to pay Service tax on the additional consideration received - just to be on the safer side . Even if one of them survives, it is still an achievement....

Consulting Engineer - when contract itself is 'divisible', no surgery to isolate Siamese twins of services and goods required - service tax leviable : Tribunal
NEW DELHI, DEC 05, 2006 : AFTER the tribunal order in the M/s Daelim Industrial case (2003-TIOL-110-CESTAT-DEL) where it was held that the work contract cannot be vivisected to pick up those services which fall in the categories of taxable services, a growing trend can be seen among the Commissioner (A) to outrightly set aside the Revenue's demand....

Finolex Industries directed by Tribunal to pay Rs one crore for getting a stay in Service Tax case
MUMBAI, DEC 04, 2006: THE company constructed their own jetty which is used by them for import of raw materials required in the manufacture of their final products.   They also   constructed two LPG storage tanks and associated equipments for handling LPG gas near their port. Under an agreement dated 03.11.1996, they gave licences for two storage tanks and associated equipments initially to M/s BSL and then to M/s BPCL on licence basis....

Rent -a-cab scheme operator services - evidence produced before tribunal - matter remanded : Cestat
BANGALORE, DEC 01, 2006 : THE
appellants were carrying out the services under the category of "Rent a Cab Scheme Operator Services" for the period 1.4.2000 to 31.3.2005. They obtained registration after 14.09.2003. They failed to file the returns within the prescribed period prior to 14.9.2003. A Show Cause Notice was issued for the period 1.4.2000 to 31.3.2005 raising demand of Service Tax of Rs.20,97,085/- on the ground that they suppressed the facts and have not paid the tax during the period. The order was passed ex parte....

Service Tax paid by advertising agencies for advertising aerated waters is available as credit to manufacturers of concentrates : Tribunal
By TIOL News Service

MUMBAI, NOV 29, 2006 : IN
a landmark decision that is not going to go down well with the Revenue, the Tribunal has held that the service tax paid by the Advertising agencies for advertising of Aerated water is eligible for credit & utilization while clearing concentrates to bottlers of Aerated waters....

Delivery to courier or airline, would not by itself amount to rendering services in USA; Foreign service provider - Indian service receiver liable to pay tax if agreement stipulates so : Tribunal
AHMEDABAD, NOV 27, 2006 : THIS
is a stay application. The issue is liability on the Indian service receiver for the period prior to 16.8.2002....

Security service provided by Punjab Ex-Servicemen Corpn taxable - value is gross consideration : Tribunal
NEW DELHI, NOV 24, 2006 : THE
appeal is filed by Punjab Ex-Serviceman Corpn challenging the order by the authorities below holding that the appellant corporation floated by Punjab Government for the welfare of Ex-Serviceman is not a charitable organization but service provider of security services which are taxable under the law. None represented the appellant inspite of notice.

Service Tax - prima facie, hire purchase and hire purchase financing are not synonymous - waiver of predeposit of Rs 26 Cr granted by tribunal
MUMBAI, NOV 21, 2006 : AUTO
finance companies are already on a high. With sales of two and four wheelers heading towards the northerly direction, these companies will never fall short of any clientele....

Breach Candy Swimming Bath Trust is not a Mandap Keeper and hence not required to pay Service Tax : Tribunal
MUMBAI, NOV 20, 2006 : THE
Breach Candy Swimming Bath Trust located near the Breach Candy Hospital, Bhulabhai Desai Road, Mumbai has an indoor swimming pool of saltwater and also a huge outdoor poo....

Consulting engineer - Service Tax liability is on prime consultant not the sub-consultant : Cestat
BANGALORE, NOV 17, 2006 : RECENTLY
we carried a judgement of the AP High Court striking down VAT both on the contractor and sub contractor and we had asked, "Will the same logic apply to Service Tax?"....

Service Tax on tour operators - levy not unconstitutional : Karnataka High Court
BANGALORE, NOV 16, 2006 : THE
issue involved in the writ petitions is levy of 'Service Tax' on tour operators, whose services are brought under the 'Service Tax' with effect from 1.9.1997 vide Notification No. 37/97 (dated 22.8.97)....

Service tax on computer training institutes - insertion of clause (iii) in Explanation to Notification is not clarificatory - prima facie not chargeable to service tax for period 11.09.2004 to 16.03.2005; stay granted
KOLKATA, NOV 07, 2006 : THE appellant is running a Computer Training Centre at Ranchi, under a Licence Agreement with NIIT Ltd. At the said Centre, the appellant imparts training to the trainees in relation to computer software....

Music can be sometimes taxing, a tax can never be musical and consignment stockist is a clearing and forwarding agent: Cestat
NEW DELHI, NOV 03, 2006 : THE
appellant is a consignment stockist on behalf of Gas Authority of India Ltd. The Service Tax Department issued a Show Cause Notice demanding Service Tax on the commission received by them relying on following clauses in the agreement....

Airport Authority of India alleges harassment and threat of arrest by Service Tax - Tax paid under protest does not mean it is paid due to threat : Delhi HC
NEW DELHI, NOV 01, 2006 : THE
mighty AAI is a large organisation maintaining 126 airports. But even this mighty organisation is not above the persuasive powers of the Central Excise department. They were made to pay Rs 20 Crores voluntarily by the department, but later they alleged that the payment was because of coercion....

In Service Tax matters, tribunal can also hear cases involving tax amounts below Rs 50,000 : Cestat
KOLKATA, OCT 27, 2006 : SOME
facets remain un-explored unless they are raked up in appeal proceedings. Just when we felt that Service Tax issues are all about finding a proper category for the service provider and as to who should be really paying Service Tax, we have a good issue contested before the Tribunal by the Departmental Representative....

Making boards and painting are not advertising service : Cestat
NEW DELHI, OCT 17, 2006 : THE
work entrusted to the appellant by the Uttaranchal Tourism was....

Sale of SIM card liable to service tax : Delhi Cestat
NEW DELHI, OCT 11, 2006 : THE South Zonal bench of the Tribunal had in Idea Mobile Communication Ltd. Vs. CCE 2006-TIOL-857-CESTAT-BANG held that when sales tax is paid on SIM cards, no Service Tax is leviable.....

Service Tax - Religious and Charitable Institution not a 'Commercial Concern' even if it collects nominal fee for providing employment : Cestat
BANGALORE, OCT 04, 2006 : THE
issue before the CESTAT was whether a Religious and charitable Institution can be considered as commercial concern just because it collects some fee for the services provided.....

Supervision charges collected as levy cannot be described as consideration for services provided for storage and warehousing; Asst Distt Excise Officer of MP State Warehouse wins Service Tax case
NEW DELHI, SEPT 29, 2006 : I
have taken more good from alcohol than alcohol has taken from me - Winston Churchill, quoted by Quentin Reynolds....

Service Tax - demand under different heads - no break-up amount for each service mentioned in SCN - quantum of tax levied on individual services is uncertain - recovery stayed
CHENNAI, SEPT 26, 2006 : THE
appellants as a O&M Contractor were required to run an electric power generating plant (250 MW) of the owner....

Service Tax - constitutional validity of Sec 66A upheld - Only services received in India are taxable : Delhi HC
NEW DELHI, SEPT 22, 2006 : THOUGH
the High Court did not strike down Section 66A, it observed that service received abroad is not taxable....

Service Tax - advertising - Google's re-search finds no result in Advance Ruling
NEW DELHI, SEPT 21, 2006 : GOOGLE
has sought modification of the order of the Authority for Advance Ruling in the issue of Service Tax on advertisement charges - 2005-TIOL-15-ARA-ST on the ground that that there is prime facie factual error....

Bottling of liquor is liable to service tax : High Court
BHOPAL, SEPT 21, 2006 : IN
these writ petitions the question involved is whether service tax on packaging i.e. bottling and labelling of liquor, can be levied from the distillers and whether they can pass on this liability to the contractors obtaining the supplies from them....

Revenue's insatiable appetite for litigation - review initiated for non-existent order-in-original in service tax case!
NEW DELHI, SEPT 20, 2006 : IN
an interesting case a demand notice was issued to the assessee for short payment of service tax in the year 2000 and for the quarter ending March 2002....

Yeh Dil Maange More, but Cestat rejects Revenue appeal for imposing penalty on Service Tax assessee
MUMBAI, SEPT 19, 2006 : THE
Department was not happy with the waiver of the penalty amounts under Section 76 & 78 and reduction in penalty amount u/s 77 of the Finance Act 1994 by the lower appellate authority. It filed an appeal....

If testing of blood is not taxable under Service Tax, can drawing of blood be taxed? No, says the Tribunal
NEW DELHI, SEPT 18, 2006 : THE appellants run "SAMPLE COLLECTION CENTRES" for specialised laboratories like Dr Lal Path Labs Pvt. Ltd., New Delhi, M/s Speciality Ranbaxy Ltd....

Refund of service tax - Tribunal cannot consider a plea raised for the first time : Cestat
BANGALORE, SEPT 15, 2006 : THIS
case has all the circus that only the Revenue can perform.
Standard Chartered Bank filed a refund claim of Rs. 1,43,47,238/- as they had paid Service Tax even for the amounts which were not received from their customers....

Flashing an adveretisement on Cable TV would not call for Service Tax as Advertising Agency : Tribunal
MUMBAI, SEPT 14, 2006 : THE
worst part while watching the latest Bollywood hit on cable TV are those creeping advertisements/crawlies or those which pop before & after every song and dance sequence or a Gandhigiri dialogue...

Cestat third member cannot go beyond the point of reference : Bombay HC
MUMBAI, SEPT 14, 2006 : WHEN
there is a difference of opinion between two members of the CESTAT, normally the question is refereed to the third member....

Service Tax paid on Mobile phones is eligible for Cenvat Credit : CESTAT
MUMBAI, SEPT 13, 2006 : FORTUNATELY, the Tribunal decision for which everyone was waiting is out....

Telecom FDI festering with service tax evasion and changing security concerns
NEW DELHI, SEPT 11, 2006 : FOREIGN
Direct Investment (FDI) in telecom services is not only turning out to be a major challenge to national security but also a possible case of tax avoidance....

Supply of technical knowhow - under what head is it chargeable to service tax? Advance Ruling Authority rejects application
NEW DELHI, SEPT 11, 2006 : PFIZER LTD, a joint venture with an Indian company sought an advance ruling on "which clause in section 65 to chapter V of the Finance Act 1994....

Service tax - every firm that employs an engineer is not an engineering firm : Cestat
NEW DELHI, SEPT 06, 2006 : M/s Shakumbari Sugar & Allied Ind. Ltd. is a Central Excise assessee engaged in the manufacture of Sugar. In the year 1999-2000, it received an amount of Rs 75 lakhs as consideration for technical service rendered to M/s. Krishna Taxport Industries Ltd....

Foreign Service Provider –- Service Tax payable by Indian service receiver –- High Court
KOCHI, SEPT 01, 2006 : THE
Kerala State Electricity Board entered into a contract with M/s. SNC Lavalin Inc., Montreal, Canada to implement a project work of Kuttiyady Extension Scheme and also the Pallivasal, Sangulam and Panniyar upgradation projects....

Service tax on security agency - No abatement is allowable for cost of labour and contribution towards ESI and EPF : Cestat
NEW DELHI, AUG 29, 2006 : TRUE to their name this security agency promptly took registration as a Service Tax provider the moment these services were notified in October 1998, made periodic payments of tax and filed returns....

Service tax on GTA in 1997 - no tax payable, but if paid, no refund : Cestat
NEW DELHI, AUG 13, 2006 : THE
1997 GTA Service Tax fiasco refuses to die down. All the retrospective amendments could not save Revenue's ca(u)se....

Foreign Consulting Engineer having office in India - Revenue cannot hold on to the amount of service tax paid by receiver of service by mistake
NEW DELHI, AUG 9, 2006 : IN
the present case, the Indian company sought the services of a Consulting Engineer situated in Australia for their manufacturing plant. Being the service recipient, they paid Service Tax on the said Consulting charges paid by them....

Service tax evasion under BAS : DGCEI books Bangalore-based liquor firm for Rs 11 Cr evasion
NEW DELHI, AUG 5, 2006 : TAX
evasion is an old evil. Thanks to liberalisation and simplification of procedures a significant number has been taking undue advantages of the relaxed preventive regime....

Merely screen printing of advertising hoardings does not make a person an Advertising Agency : Cestat
BANGALORE, AUG 2, 2006 : WHAT's
in a name - one may say. Lot of things if you are called Zodiac Advertisers - that too if you come under the departmental scanner....

ZEE & Star celebrate joint victory in service tax case - Cestat sets aside Rs 22 Cr demand
MUMBAI, JULY 31, 2006 : IF at all any one has to be blamed, it should surely be the drafters of the amendments effected to section 65 of the Finance Act, 1994. If not them, then the authorities who want Service Tax....

Valuation of photographic service : Cestat rules cost of photographic paper and other materials not excluded from gross amount taxable to service tax
NEW DELHI, JULY 25, 2006 : SERVICE tax was imposed on photography services in 2001. The gross amount charged by a photography studio or agency for services provided or to be provided to a customer, by a photography studio or agency....

AC demands, Commissioner (Appeals) drops, Addl Commissioner demands, Commissioner (Appeals) confirms - Cestat remands
NEW DELHI, JULY 17, 2006 : THE legal maze through which an assessee has to go through is amazing. The sequence of events in this drama unfolded like this....

No service tax if sales tax is collected : Cestat
BANGALORE, JULY 12, 2006 : THE issue here is Service Tax on SIM cards for cellular phones....

Jules Romains, Mahler's 9th Symphony & Trishanku aid Larger Bench to hold that singular operation of clearing or forwarding also falls within ambit of C & F Agent and is liable to service tax
NEW DELHI, JULY 10, 2006 : WHERE there's music, there can be no evil - Cervantes, Don Quixote....

Service tax on C & F Agent : Larger Bench overrules Tribunal's decision in Prabhat Zarda case
NEW DELHI, JULY 3, 2006 : LARSEN & TOUBRO, Voltas and others have a very good reason to be happy. They would not be required to get themselves registered as C & F Agents under Service Tax for the reason that the Larger Bench has ruled in their favour....

Payment received from third party for exclusive right to catering in function hall does not attract service tax : Bombay HC
MUMBAI, JUNE 21, 2006 : THERE
is a function hall which is given on rent for social and business functions - clearly attracts Service Tax as mandap keeper. Now there's a catch. If you need this function hall, you have to order catering and decoration from a particular person...

What's the right word? 'Partly allowed' or 'partially allowed'?
CHENNAI, JUNE 22, 2006 : THERE is an old joke on how a comma could cost a life! A judge after hearing the arguments got convinced that there was no case for punishing the offender, but in a hurry to go home early, signed the judgment “Hang, not excuse him” instead of “Hang not, excuse him”....

Levy of service tax on placement by IIMs & IITs - CAG supports Revenue's stand
NEW DELHI, MAY 30, 2006 : COLLECTING
tax is certainly not a pleasant job. A taxman is detested by all and sundry for doing his job. This was recently seen when the taxmen in Ahmedabad issued a notice to the high-profile IIM-A for the levy of service tax....

Service tax on GTO - Notification 43/97 available to units having provisional SSI registration : Cestat
MUMBAI, JUNE 14, 2006 : DURING
the era of the small scale notification 175/86 CE, one of the important conditions for a manufacturer to avail exemption from Central Excise duty was to have an SSI registration from the Directorate of Industries....

CAG says Revenue failed to recover Rs 47 Cr service tax from DD on broadcasting services
NEW DELHI, JUNE 7, 2006 : AT
a time when the general atmosphere is about withdrawal of tax exemptions, the CAG in its latest report has indicated the Revenue's keenness to grant exemption to certain services....

Service Tax on GTA - tax paid for 1997-98 to be refunded
NEW DELHI, MAY 29, 2006 : FIRST
they imposed a tax on GTA to be payable by the recipient. This was challenged. The Supreme Court struck it down, but the executive was not going to take it lying down....

No penalty if service tax is paid before issue of SCN - Machino Montell applicable - but interest is recoverable : Cestat
NEW DELHI, MAY 19, 2006 : THE
relevant facts are that the appellants were receiving services of GTO for the period from 16.11.97 to 2.6.98. Validity of these services was challenged in the Supreme Court and a retrospective amendment was carried out to the Finance Act....

Service involving designing, erection, commissioning & training - a wide spectrum of tasks demanding certain professional engineering skills - tax payable under Consulting Engineer : Cestat
CHENNAI, MAY 25, 2006 : THE assessee admittedly performed the following activities....

Service Tax - Registration cannot be considered as granted with retrospective effect for availing Credit
MUMBAI, MAY 24, 2006 : THIS case pertains to the time the Service Tax Rules, 2002 were in vogue. Rule 3(1) of the said Credit Rules before its substitution on 14.05.2003 stipulated that an output service provider shall be allowed to take credit of the service tax....

'Spicing' up rule 6(3) of Service Tax Rules : Service tax paid to DoT cannot be adjusted towards own service tax liability
NEW DELHI, MAY 15, 2006 : IN
the present case, the Cellular operator was paying Service tax to the Central government in respect of the Cellular phone services provided to their customers....

No penalty during the amnesty scheme : Cestat
NEW DELHI, MAY 9, 2006 : THE
respondent in this Revenue appeal is a security services agency. The department found him an offender and demanded tax and penalties...

The tale of missing Cenvat Credit in service tax
CONTRARY
to the Finance Ministry announcement, changes made in the law disallows credit for the service tax paid on various input services....

Cable operator being a small firm - imposition of penalty under service tax not justifiable - Commissioner (A) order is considerate and humane : Cestat
NEW DELHI, MAY 5, 2006 : HERE
is a physically challenged person running a cable TV service with a turnover of Rs. 40,000/- to Rs. 70,000/- per year, which as we all know is barely sufficient to sustain him....

Surat Municipal Corporation is in the news again; but this time as a mandap keeper under service tax provisions
NEW DELHI, MAY 4, 2006 : THE
city of Surat is located in southern Gujarat, on the banks of the river Tapi. It is India's twelfth most-populous city. Manufacture of gold and silver brocade being a cottage industry, the tax compliance is observed to be below average....

'Reviewing' service tax orders passed by Commissioner - to become a nightmarish experience!
MUMBAI, MAY 2, 2006: TIOL had carried a report last week in the 'Breaking News' Section and the last word in that piece was that the departmental officers are going to vouch for Section 35E provisions to be made applicable to Service Tax matters. [2006-TIOL-461-CESTAT-DEL]....

Service tax - Sec 73 does not contemplate issuance of SCN when assessee pays tax with interest; Hence SCN is beyond provision of the Act
NEW DELHI, APR 28, 2006: FACTS of this case are that the appellants are providing services of transportation and loading of coal from rail yard to their client....

MoF notifies 15 new services from May 1; Service tax rate for air travel agents goes up; 70% abatement allowed on rail transport containers
NEW DELHI, APR 25, 2006: WITH
the Finance Minister scheduled to take active participation in the local elections in Tamil Nadu, today was expected to be a highly hectic day for the topbrass in North Block....

No vivisection even if the value of services separately mentioned : Cestat
MUMBAI, APR 25, 2006: IN
the now famous Daelim Industrial Co., case in which the Tribunal had held that a composite contract cannot be vivisected to levy Service Tax on various components....

CA's certificate is a reliable document to decide issue of unjust enrichment : Cestat
BANGALORE, APR 23, 2006: THE
Bills of Entry were assessed with higher value and the higher quantum of duty was demanded. The Commissioner (Appeals) upheld the assessee’s contention....

Service anywhere would attract liability under outdoor caterers for service tax : Kerala HC
NEW DELHI, APR 21, 2006 :
THE petitioners challenge a letter of the Superintendent of Central Excise holding them to be providers of catering service to Air India and liable to get registered and pay Service Tax....

Service tax - when amnesty is allowed to even those who were not registered, the same should be given to those who were registered : Cestat
NEW DELHI, APR 20, 2006 : THE
appellants are engaged in the business of renting Cabs since June, 2000 and got themselves registered as Rent a Cab Operator from 06.12.2000....

In service tax matters, you have the power to review but you cannot direct your subordinate to file an appeal : Cestat
NEW DELHI, APR 18, 2006:
FORGIVE them O Lord for they don't know what they have done - these are the words which holy men utter....

Chartered Accountant does not pay service tax within the time allowed by HC - Interest leviable : Cestat
NEW DELHI, APR 16, 2006: THE
appellant is a practising chartered accountant and were liable to pay the Service Tax. The Chartered Accountants Association of Rajasthan unsuccessfully challenged the imposition of the Service Tax in the High Court of Rajasthan, but the High Court granted the Association time to pay up Service Tax dues....

NEW DELHI, Feb 23, 2006: SERVICE TAX ON 'CONSULTING ENGINEER' : NOTIFICATION 18/2002 CANNOT BE READ RETROSPECTIVELY

BANGALORE, Feb 17, 2006: SERVICE TAX REFUND : FRIVOLOUS REVIEWS CONTINUE; IS THERE NO END TO THEM?

KOCHI, Feb 15, 2006: PRIVATE COLLEGES NOT AWARDING DEGREES ARE NOT LIABLE TO SERVICE TAX; TAX ON EDUCATION IS REGRESSIVE SAYS HC

CHENNAI, Feb 8, 2006 : MADRAS HIGH COURT STAYS TAX ON SERVICES RECEIVED ABROAD

NEW DELHI, Feb 6, 2006 : WHAT IS THE DIFFERENCE BETWEEN THE ADVICE AND CONSULTATION OF A SAINT SITTING UNDER A BANYAN TREE AND THE ADVICE OF A QUALIFIED PROFESSIONAL CONSULTANT ENGINEER? CESTAT UPHOLDS SERVICE TAX DEMAND OF RS 3 CR ON NOKIA

NEW DELHI, Jan 31, 2006 : KERALA HC SAYS PARALLEL COLLEGES COACHING PVT STUDENTS FOR PUBLIC EXAMS NOT LIABLE TO PAY SERVICE TAX

NEW DELHI, Jan 10, 2006 : SERVICE TAX ON CLEARING & FORWARDING SERVICE : PRABHAT ZARDA CASE REFERRED TO LARGER BENCH

NEW DELHI, Jan 3, 2006 : ADB STIPULATES SERVICE TAX FOR MUNICIPAL CORPORATIONS IN KERALA

MUMBAI, Jan 2, 2006 : SERVICE TAX CASE : CASH-RICH CRICKET BOARD ASKED TO DEPOSIT AN AFFORDABLE RS 6 CRORE AS PRE-DEPOSIT

NEW DELHI, Dec 27, 2005 : SUPPLYING FREE SAMPLES OF MANUFACTURER TO VARIOUS DOCTORS FOR ADVERTISING MEDICAMENTS COVERED UNDER BAS AND NOT C & F AGENT

NEW DELHI, Dec 23, 2005 : ADVANCE RULING : PROVIDING/SELLING SPACE FOR ADVERTISEMENT ON 'GOOGLE WEBSITE' IS LIABLE TO SERVICE TAX

NEW DELHI, Dec 20, 2005 : DEPUTATION OF EXECUTIVES TO SISTER CONCERNS AND RECOVERY OF AMOUNTS REPRESENTING SALARY AND OVERHEADS NOT LIABLE TO SERVICE TAX AS MANAGEMENT CONSULTANCY

NEW DELHI, Dec 12, 2005 : DGCEI BOOKS EICHER MOTORS FOR NOT COLLECTING SERVICE TAX ON INTELLECTUAL PROPERTY SERVICE

NEW DELHI, Dec 5, 2005 : AGREEMENT TO DEDUCT WITHHOLDING TAX AND DISPUTE SETTLEMENT ACCORDING TO INDIAN LAWS DO NOT PLACE BURDEN TO PAY SERVICE TAX : TRIBUNAL

MUMBAI, Dec 1, 2005 : COMMISSION PAID TO DEALERS FOR SERVICES RENDERED IS TAXABLE AS 'CLEARING & FORWARDING AGENTS'

CHENNAI, Nov 30, 2005: IS DONATION RECEIVED BY A CHARITABLE ORGANISATION CONSIDERATION FOR LEVYING SERVICE TAX?

NEW DELHI, Nov 25, 2005: REVENUE SECRETARY SAYS NORTH BLOCK NOT WORKING ON INDEPENDENT SERVICE TAX ACT; EET REPORT TO BE SUBMITTED SOON

HYDERABAD, Nov 19, 2005: SERVICE TAX CREDIT RULES : A DENSE BLACK HOLE IN COSMIC SPACE!

NEW DELHI, Nov 8, 2005: SERVICE TAX - PHOTOGRAPHY SERVICE - GROSS RECEIPTS TAXABLE - SC

MUMBAI, Oct 13, 2005: TRIBUNAL GRANTS IBPS A STAY FROM RECOVERY OF SERVICE TAX

MUMBAI, Oct 10, 2005: MANAGEMENT CONSULTANT MCKINSEY & CO FAILS TO MANAGE ITS TAX LIABILITY; ORDERED TO COUGH UP RS 2 CRORE AGAINST SERVICE TAX DUES FOR GETTING STAY

CHENNAI, Sept 9, 2005: A PLEA OF FINANCIAL HARDSHIPS CANNOT, BY ITSELF, BE A SATISFACTORY CAUSE OF DELAYED PAYMENT OF SERVICE TAX

NEW DELHI, Sept 8, 2005: CBEC FOCUS ON SERVICE TAX : AUDIT MAY PLAY CRITICAL ROLE TO COUNTERVAIL EVASION

NEW DELHI, Sept 6, 2005: SUPPLY OF FURNITURE TO A PANDAL ATTRACTS SERVICE TAX : ADVANCE RULINGS AUTHORITY

NEW DELHI, Sept 2, 2005: CO-ORDINATION ACTIVITIES ARE COVERED UNDER CLEARING & FORWARDING SERVICE : CESTAT RULES BY MAJORITY ORDER

NEW DELHI, Aug 31, 2005: PROJECT MANAGEMENT CONTRACT IS NOT LIABLE TO SERVICE TAX UNDER CONSULTING ENGINEER

NEW DELHI , AUG 26, 2005: CASES BOOKED BY DELHI SERVICE TAX PROVES HUGE POTENTIAL OF REVENUE FROM SERVICE TAX

NEW DELHI , AUG 12, 2005: UPA GOVT ALL GEARED UP TO GIVE A MAJOR FACELIFT TO SSI DEFINITION; SERVICE PROVIDERS PUT AT EQUAL FOOTING

NEW DELHI , AUG 05, 2005: CESTAT SAYS NO PENALTY IS IMPOSABLE IN CASES WHERE SERVICE TAX IS PAID BEFORE ISSUE OF SCN

NEW DELHI , AUG 02, 2005: DGST PRESCRIBES DISINCENTIVE FOR CENTRALISED REGISTRATION IN SERVICE TAX

NEW DELHI , JUNE 28, 2005: SERVICE PROVIDERS FALLING PREY TO 'TDS SYNDROME'; DGCEI NETS AAI AND JET AIRWAYS FOR SERVICE TAX EVASION

NEW DELHI , JUNE 22, 2005: CESTAT RULES KNOWHOW FEE AND ROYALTY PAYMENTS TO MNC PARENT ARE NOT LIABLE TO SERVICE TAX

NEW DELHI , JUNE 15, 2005: EXCHANGE OF INTANGIBLE PROPERTY THROUGH TECHNICAL TIE-UP IS NOT LIABLE TO SERVICE TAX

NEW DELHI , JULY 11, 2005: DGCEI FOCUSES ON SERVICE TAX EVASION; BOOKS SITA TRAVELS, THOMAS COOK & RECOVERS GOOD SUM FROM HYATT REGENCY; ALSO RAIDS BIRA GROUP OF LUDHIANA

NEW DELHI , JUNE 23, 2005: SUPPLYING MANPOWER CANNOT BE EQUATED WITH PROVIDING THE SERVICE OF 'CARGO HANDLING' : CESTAT

AGRA, JUNE 23, 2005: SERVICE OF NOTICE U/S 148 ON CA IS INVALID IN THE EYES OF LAW; ALL SUBSEQUENT PROCEEDINGS ARE ILLEGAL AND VOID

MUMBAI, JUNE 15, 2005: ANGADIA PAISE LAYA, ANGADIA PAISE LAYA RE! BUT NO SERVICE TAX IS LEVIABLE: CESTAT

NEW DELHI, JUNE 09, 2005: FM APPROVES CBEC FRESH RESTRUCTURING PLANS - NEW SERVICE TAX COMMISSIONERATES AND STRENGTHENING OF DGCEI AND DG (AUDIT)

NEW DELHI, JUNE 08, 2005: WANT TO DYE YOUR HAIR? PAY SERVICE TAX

NEW DELHI, JUNE 08, 2005: FICCI,CII & COAI SUBJECTED TO SERVICE TAX; EVEN RESIDENT WELFARE ASSOCIATIONS TO BEAR THE BRUNT

NEW DELHI, JUNE 07, 2005: MOF NOTIFIES NINE NEW SERVICES AND EXPANDED LIST OF EXISTING SERVICES FROM JUNE 16

NEW DELHI, JUNE 07, 2005: BREATHER FOR CELLULAR OPERATORS; SERVICE TAX RULES AMENDED TO ALLOW CENTRALISED REGISTRATION HOLDERS TO ADJUST EXCESS SERVICE TAX PAID

NEW DELHI, JUNE 06, 2005: TIOL LAUNCHES COMPREHENSIVE ELECTRONIC LIBRARY ON EXIM AND SERVICE TAX AND ALL OTHER INDIRECT TAXES

NEW DELHI, MAY 31, 2005: CABINET PERMITS MOC TO MAKE REVISED OFFER TO WTO ON OPENING UP SERVICES SECTOR

NEW DELHI, MAY 25, 2005: SERVICE TAX ON REPAIRS AND MAINTENANCE : A LEGISLATIVE HARA KIRI!

MUMBAI, MAY 20, 2005: HC GRANTS STAY ON LEVY OF SERVICE TAX; CESTAT SAYS A SHORT-LIVED 'STAY' ATTRACTS INTEREST

NEW DELHI, MAY 13, 2005: MS SHERAWAT, HER OPULENT JEWELLERY AND SEVICE TAX, A TERRIFIC TRIO!

CHENNAI, MAY 2, 2005: IN CASE OF DELAY IN PAYMENT OF SERVICE TAX, INTEREST IS TO BE PAID FOR THE ACTUAL PERIOD OF DELAY AND NOT ENTIRE MONTH

MUMBAI, APRIL 28, 2005: WHAT'S THE GOOD WORD, RENT OR HIRE, FOR SERVICE TAX?

NEW DELHI, MARCH 28, 2005: MODUS OPERANDI FOR SERVICE TAX EVASION - STRAIGHT FROM TRU!!

NEW DELHI, MARCH 23, 2005: SC UPHOLDS ANOTHER RETROSPECTIVE LEGISLATION; SERVICE TAX ON GTA IS VALID

BANGALORE, MARCH 11, 2005: NON-PAYMENT OF SERVICE TAX BY DUE DATE DUE TO STRIKE : CESTAT REDUCES PENALTY

NEW DELHI, MARCH 03, 2005: MOF NOTIFIES SERVICE TAX SOPS FOR EXPORTS OF SERVICES; CREDIT RULES AMENDED

NEW DELHI, MARCH 03, 2005: SERVICE TAX ON CONSTRUCTION SERVICE NOT TO HIKE THE PRICES OF FLATS ALREADY CONSTRUCTED AND SOLD BY BUILDERS

MUMBAI, MARCH 01, 2005:  SERVICE TAX ADDS TO DEMOLITION COST!

NEW DELHI, FEB 28, 2005:  IMPACT OF SERVICE TAX AMENDMENT : CANTEEN FOOD TO BE COSTLIER AFTER MAY

NEW DELHI, FEB 28, 2005:  SERVICE TAX ON BUSINESS AXULIARY SERVICES : 'BASK-ING' IN GLORY!

NEW DELHI, FEB 24, 2005:  ECONOMIC SURVEY HINTS AT REMEDYING INVERTED TAX STRUCTURE AND WIDENING OF SERVICE TAX NET

NEW DELHI, FEB 24, 2005:  SERVICE TAX ON JOB WORK

CHENNAI, FEB 20, 2005:  RELATIONSHIP BETWEEN THE SERVICE PROVIDER AND THE SERVICE RECEIVER IS A CRUCIAL ELEMENT FOR PURPOSE OF SERVICE TAX LEVY

NEW DELHI, FEB 12, 2005:  SERVICE TAX - AISHWARYA RAI, SHAH RUKH KHAN AND AMITABH BACHHAN HAVE CLEAN SLATES WHILE PSUS LIKE POWER GRID CORPORATION AND CENTRAL SILK BOARD ARE ON THE DOCK

NEW DELHI, FEB 09, 2005:  BUDGET NEEDS TO REDEFINE BUSINESS AUXILIARY SERVICES

NEW DELHI, FEB 08, 2005:  HC RULES CLUBS ARE NOT LIABLE TO SERVICE TAX AS 'MANDAP KEEPER'

NEW DELHI, FEB 06, 2005:  THE MARCH SYNDROME IS HERE; SERVICE TAX FOR MARCH TO BE PAID BY MARCH 31

NEW DELHI, JAN 14, 2005:  SERVICE TAX COMMITTEE CALLS FOR CREATION OF JS-LEVEL POSTS IN BOARD FOR INTERNATIONAL CUSTOMS AND EXCISE

NEW DELHI, JAN 13, 2005:  10,000 VACANCIES IN CBEC ALONE AND FM IS NOT AWARE OF IT? SERVICE TAX COMMITTEE SUGGESTS INTERIM MECHANISM TO FILL THEM UP!

NEW DELHI, JAN 12, 2005:  SERVICE TAX COMMITTEE CALLS FOR MASSIVE RESTRUCTURING OF CUSTOMS OUTFITS;

NEW DELHI, JAN 11, 2005:  SERVICE TAX ON GOODS TRANSPORT AGENCY : WILL THE GOVT SUCCEED IN SECOND INNINGS?

NEW DELHI, JAN 11, 2005:  SERVICE TAX COMMITTEE RECOMMENDS CREATION OF THREE MORE EXCLUSIVE COMMISSIONERATES IN DELHI, MUMBAI & KOLKATA

NEW DELHI, JAN 11, 2005:  IN DEFENCE OF THE GOVERNMENT - CONFUSION OVER NOTIFICATION NO 36/2004 SERVICE TAX DATED 31.12.2004

NEW DELHI, DEC 29, 2004:  DONATION RECEIVED IN RELATION TO SERVICE IS LIABLE TO SERVICE TAX; ANY SERVICE WHICH HAS A DIRECT OR INDIRECT NEXUS WITH USE OF MANDAP IS TAXABLE

NEW DELHI, DEC 28, 2004:  SERVICE TAX PENALTY U/S 76 & 77 IS NOT MANDATORY : CESTAT

NEW DELHI, DEC 22, 2004:  SERVICE TAX ON GOODS TRANSPORT : RETROSPECTIVE AMENDMENT DOES NOT HELP REVENUE!

NEW DELHI, DEC 21, 2004:  THE TRU HAS COME OUT WITH ELABORATE CLARIFICATION ON SERVICE TAX ON GOODS TRANSPORT AGENCY TO BE EFFECTIVE FROM 1ST JANUARY, 2005

NEW DELHI, DEC 15, 2004:  SERVICES SECTOR BOOM COMES UNDER SCANNER; IMF STUDY SUGGESTS ROOM FOR HUGE GROWTH IN TRADABLE SERVICES

NEW DELHI, DEC 14, 2004:  SERVICE TAX APPLICATION BY BRITISHER PROPOSING TO SET UP CALL CENTRES REJECTED

NEW DELHI, DEC 13, 2004:  GOODS TRANSPORT, SERVICE TAX NOTIFICATIONS ISSUED, BHARADWAJ COMMITTEE RECOMMENDATIONS ACCEPTED

NEW DELHI, DEC 03, 2004:  PC GOES BY BHARDWAJ PANEL RECOMMENDATIONS FOR SERVICE TAX ON TRUCKERS;

CHENNAI, NOV 29, 2004: DISPLAY OF ADVT BY LEASE OF SITE FOR RENTAL CHARGES DOES NOT ATTRACT SERVICE TAX

NEW DELHI, NOV 25, 2004: SERVICE TAX ON TRANSPORTERS : BHARDWAJ COMMITTEE DOES A SHODDY JOB...

MUMBAI, NOV 25, 2004: RS 3.74 CR DEMAND AGAINST BAJAJ AUTO SET ASIDE....

NEW DELHI, NOV 22, 2004: MAJOR SETBACK FOR SERVICE TAX DEFAULTERS.

NEW DELHI, NOV 19, 2004: CBEC PANEL CALLS FOR 3 MORE EXCLUSIVE SERVICE TAX COMMISSIONERATES..

NEW DELHI, OCT 28, 2004: INPUT SERVICE DISTRIBUTORS NOT REQUIRED TO BE REGISTERED

NEW DELHI, OCT 5, 2004: CO-OPERATIVE BANKS, ARE YOU NOT SUPPOSED TO PAY SERVICE TAX?

NEW DELHI, SEPT 20, 2004: REIMBURSEMENT FOR MANAGEMENT COST NOT LIABLE TO SERVICE TAX

NEW DELHI, SEPT 14, 2004: SIX NEW COMMISSIONERATE

NEW DELHI, SEPT 13, 2004: IATA AGENTS & FLIGHT CATERERS SILENTLY BROUGHT UNDER SERVICE TAX NET 

NEW DELHI, SEPT 13, 2004: EXERCISE OF POLLING 'OPINION' BECOMES MORE TAXING!

Appellant renting their premises to bank and persisting with them to pay service tax but same was paid belatedly – upon receipt, tax immediately deposited in treasury – No cause for Penalty in view of Sec 80 of Finance Act, 1994: CESTAT
MUMBAI, JAN 29, 2010: THE
facts of the case are that the appellant (Mrs. Taradevi Bafna) had provided their premises on rent to Oriental Bank of Commerce . A show-cause notice was issued, wherein it was charged that the appellant had delayed payment of service tax for the period from June, 07 to March, 08...

Rent a cab service, outdoor catering service, air travel booking, telephone/mobile services and steamer agent qualify as 'input service' – Refund of un-utilised Cenvat credit admissible – CESTAT
MUMBAI, JAN 28, 2010: EIGHT appeals against eight orders-in-appeal, all dated 08.08.08 were filed by the appellant company before the CESTAT, WZB, Mumbai. They were heard together on 29th October, 2009 and the order was passed recently. The notable feature of this order is its running length - 52 paragraphs spread over fifty pages.

BAS - Commission Agent in India for foreign client – Export of services – Over Rs 30 Crore demand stayed: CESTAT
BANGALORE, JAN 27, 2010: THE impugned order confirmed the following liability against the appellants:-

Supreme Court issues notices on payment of Serrvice Tax at behest of AAI:IST
NEW DELHI, 27 JAN, 2010: AAI (Airports Authority of India) heaved a sigh of relief with the Supreme Court issuing notices to various licensees on its petition for payment of Service Tax allegedly not paid by them.

Amount paid due to misunderstanding of law, when no tax was payable - limitation under Section 11B of Central Excise Act not applicable - Karnataka HC
BANGALORE, JAN 22, 2010: THE petitioner paid over One Crore rupees as service tax on the activity of construction due to a misunderstanding of law.

Construction of a building in Sri Lanka - tax paid by misunderstanding of law - Amount paid is not tax and refund not governed by limitation under Sec 11B of Central Excise Act: Madras HC
CHENNAI, JAN 22, 2010: THE petitioner is seeking a Mandamus, directing the respondent to refund the service tax paid by them under a mistake of law, on export of services.

Value of material supplied free by service recipient has to be included for computation of Gross value charged under Notification15/2004 ST: CESTAT
AHMEDABAD, JAN 21, 2010: NOTIFICATION 15/2004 ST dated 10.9.2004 (present Notification No 1/2006 ST dated 1.3.2006) provided exemption in excess of 33% of the gross amount charged for providing the service.

Service Tax is liable to be paid only when service is received from GTA and not truck owners or transporters - Legislative intent is not to tax truck owners or truck operators: CESTAT
BANGALORE, JAN 20, 2010: THE appellants are engaged in the business of exporting iron ore and registered themselves with the service tax authorities as a recipient of GTA service.

Service Tax - Construction of godowns at Railway yard for Central Warehousing Corporation which in turn lets out same for commercial purpose is taxable under Commercial & Industrial Building Construction services: CESTAT
MUMBAI, JAN 18, 2010: THE appellants, a Private Limited company, constructed godowns with ancillaries, roads, electrical installation at the Railway yard for Central Warehousing Corporation.

Tax payments through forged documents; is the law too soft? : IST
PUNE, JAN 17, 2010: SERVICE Tax Cell, Pune has filed a police complaint of forgery against Mr. Ramdas Popat Kusalkar, proprietor of Shrepad Enterprises and his tax consultant Mr. Deepak Joshi for allegedly evading Service Tax to the tune of over Rs. 50 lakhs by manipulating and forging the duty paying documents.

Photography Services, Air Travel Agent & Tourist Taxi Services are not Input Services – CESTAT dismisses ROM application by saying that if appellant is aggrieved only remedy is to file a statutory appeal and not by a ROM application
MUMBAI, JAN 14, 2010: THE lower authorities denied the benefit of Service Tax credit in respect of Xerox machine maintenance services, Air travel Agent Services, Tourist Taxi Service and Photography Services.

Google vs. the Dragon: IST
NEW DELHI, JAN 14, 2010: FACING
up to what could possibly be its biggest challange in unchartered territory Google appears to have struck first blow by reiterating its policy statement made in 2006 when it entered China, "we will not hesitate to reconsider our approach to China".

Taxing Google services the French way: IST
PARIS, JAN 09, 2010: "IF you cant catch them, tax them" seems to be the new mantra of the French Government as it considers a proposal to tax online advertising income of Google, Yahoo and other Internet search engines and portals. Getting popular by the day as "Google Tax," the proposed measure is primarily aimed at financing France's cultural institutions and compensating creators for dwindling revenues because of the collapse in sales of CDs and the absence of a corresponding rise in online music sales on account of digital privacy and illegal downloading.

Cenvat Credit – BAS - Export Commission – there seems to be a nexus between clearance of finished goods and payment of export commission - prima facie satisfies definition of input service: CESTAT
MUMBAI, JAN 08, 2010: A Stay application was filed by the appellant seeking waiver of pre-deposit and stay of recovery in respect of CENVAT credit of Rs.4,50,061/- which the Commissioner, Central Excise, LTU has denied saying that the four taxable services are outside the purview of ‘input service' defined under Rule 2(l) of the Cenvat Credit Rules, 2004.

Production of goods containing alcohol and discharging State Excise duty – CESTAT while granting Stay ordering for pre-deposit – later, in another case of same appellant setting aside order of lower authority by holding activity not liable to Service Tax under head BAS – Appellant files Misc petition – CESTAT dismisses same as infructuous
MUMBAI, JAN 07, 2010: THE Service Tax BAS mess continues unabated.

Service tax - C&F Agent - Commission agent also acting as a consignment is covered within definition of C&F Agent: Karnataka High Court
BANGALORE, JAN 07, 2010: THE question before the Karnataka High Court was “ When M/ s.Mahaveer Generics are rendering the service of receiving, storing and distributing the goods manufactured by M/s. CIPLA Ltd., whether the Hon'ble CESTAT, Bangalore is right in holding that the party was not acting as clearing and forwarding Agents and was not providing taxable service."

Service Tax – Construction of flats and transferring them to land owners who are co-developers in exchange for land cannot be held to be any service – Restriction of utilization of Credit to 20% under Rule 6(3)(c) not sustainable – Complete waiver of pre-deposit: CESTAT
BANGALORE, JAN 06, 2010: THE appellants are engaged in construction of residential complexes and are registered with service tax authorities under the taxable service categories of ‘commercial or industrial construction service' and ‘construction of complex service'. They are also registered with VAT authorities and assessed for levy of VAT under the head ‘works contract' for transfer of goods involved in construction of complexes.

Garden Maintenance services – Apex Court in Maruti Suzuki has only considered word 'input' and there is no finding with regard to 'input service' - A good garden creates a better atmosphere which increases working efficiency – Cenvat Credit available: CESTAT
MUMBAI, JAN 05, 2010: THE issue involved is whether an assessee is eligible to avail Cenvat Credit on garden maintenance service.

From face of bills, it cannot be determined as to what purposes mobile phones are being used - No statement of any employee is on record with regard to use of phones- Assessee has given phones to employees for use of business purpose only, which was never controverted by lower authorities through any evidence - Cenvat Credit of ST allowed by CESTAT
MUMBAI, DEC 31, 2009: WHETHER CENVAT credit is available on Mobile Phone Services is now become an agonizing issue. Coupled with the fact that the credits involved are paltry enough to be given the boot at the threshold stage itself, it is surprising that the see-saw of eligibility continues to haunt an assessee.

India Security Portal to protect data/information/cyber security: IST
NEW DELHI , DEC. 31, 2009: THE Data Security Survey report released by Secretary, Department of Information Technology (DIT), Ministry of Communications and Information Technology (MCIT) confirms that in comparison to manufacturers and PSUs, IT/ ITeS and Financial services are better prepared to address information security and data privacy challenges.

Works Contract or Construction - Activities which are concerned with welfare of citizens of this country has been excluded from liability of service tax: CESTAT
BANGALORE, DEC 30, 2009: THE assessee had executed Projects relating to construction of reservoirs, canals, distributory system to feed various ayacut, land etc. for Government of Andhra Pradesh. The Revenue proceeded against the appellant on the ground that such an activity would fall under the category of works contract and liable for service tax as “turnkey projects including engineering, procurement and construction or commissioning (EPC) projects” under ‘Works Contract Services'...

Services provided by one constituent of HUF to other constituents of HUF not taxable – Service tax authorities having issued single registration to HUF cannot regard constituents of HUF as separate entities and levy tax: CESTAT
BANGALORE, DEC 29, 2009: THE appellant is a constituent of a HUF viz., Ramoji Rao – HUF based at Ramoji Film City, Hyderabad. Service tax authorities proposed to levy tax on the appellant on the ground that they are engaged in providing manpower recruitment or supply agency service to other constituents of the HUF. The lower authority confirmed the service tax demand and imposed penalties.

CAGs Performance Appraisal on Business Auxiliary Services reveals systemic deficiencies: IST
NEW DELHI, DECEMBER 26, 2009
:
COMPTROLLER AND AUDITOR GENERAL (CAG) has in its Performance Appraisal Report PA No. 24 of 2009-10 observed that "the internal control mechanism existing in the department to bring unregistered service providers into tax net were ineffective and inadequate." In its scathing criticism covering various aspects of administration relating to Business Auxiliary Services...

Relevant date from which service receiver in India is liable to pay Service Tax on services received from outside India finally settled: IST
NEW DELHI, DECEMBER 25, 2009
: The matter of relevant date from which onwards the Indian service recipient is liable to pay Service Tax on services received from a non-resident who does not have an office in India has been the subject matter of innumerable disputes with the tax officials insisting the liability arises from 2002 (or at the very least, from 1.1.2005) and the tax payers countering that the correct date is 18.4.2006.

ACES set to deliver a death blow to the much dreaded Inspector Raj!: IST
NEW DELHI, DECEMBER 8, 2009 : SYSTEMS Directorate of the CBEC is currently in an overdrive to launch ACES in all Central Excise and Service Tax Commissionerates in the country by December 15th. With ACES having already rolled out in around 60 Commissionerates of Central Excise and Service Tax it can safely be presumed that this is one initiative of CBEC that will meet the deadline.

Service Tax – Security Service – BSNL directed to pay Service Tax amount with interest, to service provider who has to pay it to the government: Allahabad HC
ALLAHABAD, DEC 02, 2009: THE tragedy of a hapless service provider stuck with a Show Cause Notice from the Department and the service recipient refusing to reimburse the tax, is an everyday story in the life of any consultant.

Service Tax – Eligibility of credit of service tax paid on outward freight – CESTAT adjourns case till stay application of Revenue against Larger Bench decision in ABB Ltd is disposed of by Karnataka High Court
CHENNAI, DEC 01, 2009: THE controversy surrounding the availability of CENVAT credit of service tax paid on outward freight for transportation of goods refuses to die. This hydra headed monster rears its head again and this time the controversy is stoked by the Chennai Bench of CESTAT.

Service tax - Supply of workers for housekeeping & toilet cleaning, liable to ST under recruitment or supply of manpower: CESTAT
AHMEDABAD, NOV 30, 2009: THE appellant is engaged in supplying of manpower and is covered by supply of manpower service which was brought into service tax net with effect from 16.6.2005.

Service Tax - Activity of receipt, storage and sale of goods on commission is not covered by definition of C&F Agent's service: CESTAT
NEW DELHI, SEPT 30, 2009: IN this interesting case, the Member (J), allowed the appeal observing, “We are unable to understand how the authorities without identifying the documents on which they rely, have proceeded against the appellant to issue SCN and made adjudication. So also first appellate order was passed.

P&P medicament manufacturer - In-process analysis of semi-finished goods as well as final products so that goods meet specifications laid down under Drugs & Cosmetics Act - Debit notes raised - whether liable to Service Tax under category of 'Technical Testing and Analysis Service' - CESTAT orders pre-deposit
MUMBAI, SEPT 18, 2009: THIS is a Stay application filed against the Order passed by the Commissioner(Appeals). The Commissioner(Appeals) while upholding the Order of the Deputy Commissioner confirming the demand of service tax of Rs.3,11,520/- together with interest has reduced the penalty to Rs.15,000/-.

Service Tax – Is interest payable for period during which operation of provisions of statute was stayed by interim order of High Court? - Kabhi Haan Kabhi Naa
CHENNAI, SEPT 17, 2009: RECENTLY , an issue came up before the Chennai Bench of the CESTAT on payment of interest for the period during which there is a stay against the operation of the provisions of the Statute.

Service Tax - maintenance of green belt - not 'maintenance of immovable property': CESTAT
NEW DELHI, SEPT 14, 2009: REVENUE filed this appeal against Order of the Commissioner (Appeals) whereby adjudication order was set aside and it has been held that the activities pertaining to maintenance of green belt and maintenance of grass, plants, fruits, trees & shrubs, etc

ST –Service Tax and Export Oriented Units (EOUs) – Legal implications and fiscal benefits: IST
NEW DELHI, SEPT 12, 2009: THE
Foreign Trade Policy, 2009-2014 allows the establishment of service units under the EOU/STP/EHTP/BTP scheme for export of services out of India and earnings in convertible currency in terms of the Export of Service Rules, 2005...

Service Tax - Rs 1.86 Crore demanded as differential tax - Difference occurred due to errors in returns - Commissioner had not attempted to verify and ascertain correct figures - matter remanded: CESTAT
CHENNAI, SEPT 12, 2009: SIFY
are engaged in providing various taxable services such as internet cafe service, leased circuit service, franchise service, advertisement agent service, online information and database access/retrieval service. Scrutiny of the ST-3 returns and the records maintained by Sify indicated that they had not discharged their tax liability in full for the period October, 2005 to March, 2006.

Service tax on services received from outside India can be discharged from CENVAT Credit account – No exclusion provided in scope of 'output service' defined in Rule 2(p) of CCRs, other than GTA prior to 01.03.2008 – Pre-deposit of Rs. 3.3 crores waived and stay granted: CESTAT
BANGALORE, SEPT 10, 2009:THE appellants, M/s Toyota Kirloskar Motors Pvt. Ltd, received certain taxable services like intellectual property service, Commissioning & Installation Service, Maintenance & Repair Service from outside India

Service Tax – Appeal against Tribunal's order on taxability of service – Appeal lies to Supreme Court: Delhi High Court
NEW DELHI, SEP 04, 2009: THE Tribunal held that when the service is provided by a club to its members, it does not attract service tax. Where does an appeal lie against such a decision of the CESTAT? The Revenue appealed to the High Court.

Service tax - advertisements, sales promotion, market research entitled for input credit more particularly if they form a part of price of final product - Coke and Pepsi get a huge reprieve from Bombay High Court
MUMBAI, AUG 28, 2009: IN
a landmark judgment delivered by the Mumbai High Court, it was held that advertising/marketing services and/or sales promotion services procured by manufacturers of ‘concentrates' for marketing aerated beverages are ‘input services' and the service tax paid thereon is available as input credit

ST – Export of Services – Provision of marketing support services on behalf of client outside India not regarded as export of service if said services are consumed by ultimate clients located in India – Microsoft ordered to pre-deposit Rs 70 Crore: CESTAT
NEW DELHI, AUG 25, 2009: THE one single case which is all set to redefine the cross border transactions in services has reached the Tribunal.

Service Tax – No provision under CESTAT Rules directing Principal Officer filing appeals to attach requisite authorization to file appeals before CESTAT – Preliminary objection of Revenue to dismiss appeal for lack of proof of authorization in favour of person filing appeal, liable for rejection: CESTAT
NEW DELHI, AUG 24, 2009: THE
Revenue raised a preliminary objection that the person who filed the appeals on behalf of the assessee as its principal officer has not filed the requisite authorization from the company that he is the authorized person to files such an appeal before the CESTAT.

Cenvat Credit – Security Services provided to Director at his residential bungalow, Repair & maintenance of guest house and garden – Prima facie there is nothing to show that there was any connection, directly or indirectly in or in relation to manufacture or clearance of finished products - CESTAT orders pre-deposit
MUMBAI, AUG 20, 2009: Day
by day, on the Cenvat Credit side, things have started getting weirder .

Input Service - Mobile phones supplied to employees and bills paid by company under presumption that same are to be used in connection with business - As this presumption is in favour of assessee, rebuttal has to come from Revenue – Credit allowed: CESTAT
MUMBAI, AUG 19, 2009: THIS appeal is against denial of CENVAT credit amounting to Rs.40,592/- on certain taxable services for the period 2004-2005 to 2006-2007.

Cenvat Credit of service tax - Even if appellate authority while waiving penalty cited section 80 of Finance Act, 1994 which does not apply to facts of case, in absence of mens rea, penalty cannot be imposed under Sec 11AC: CESTAT
MUMBAI, AUGUST 11, 2009: AS
assessee had availed CENVAT credit of Service tax paid on repairs & maintenance service for maintenance of the air condition machines and water coolers installed in their factory, guest house and residential colony

Xerox machine maintenance is an Input service but Photography Services, Air Travel Agent & Tourist Taxi Services are not Input Services – Unconventional trade practices cannot bolster Cenvat credit claim: CESTAT
MUMBAI, AUG 07, 2009: MINUSCULE amounts of Cenvat credits adding up to Rs.22,078/- were taken on the following services - Xerox machine repairs and maintenance, Air Travel Agents, Tourist taxi & Photography.

Service Tax – BAS - commission paid to sales agents – input service – entitled for credit – demand and penalty set aside: CESTAT
BANGALORE, AUGUST 06, 2009: THE appellant herein is a manufacturer of PIG iron, Ductile Iron (Spun Pipes), Slag Cement and are clearing the same on payment of appropriate Central Excise duty. The appellants are also availing Cenvat credit of inputs as well as on the Service Tax paid by them on the services received by them.

Service Tax – Cenvat Credit - services undertaken like lawn mowing, garbage cleaning, collection of household garbage, harvest cutting and weeding, etc. When the appellant is under an obligation to maintain a colony, all the services received in maintaining such a colony would also be covered as input services - CESTAT
BANGALORE, AUG 05, 2009: THE
issue relates to service tax credit availed by the appellants on input services

Nagpur University entering into a contract with appellant for transportation of written answer books from district centres to Nagpur - whether appellant a 'Rent-a-Cab' operator - Prima facie case in favour: CESTAT grants stay
MUMBAI, JULY 31, 2009: THE appellant is a proprietary concern, who entered into a contract with Nagpur University for transportation of written answer books from District Collection Centres to Nagpur . 

Service Tax - Laying of pipelines for drinking water supply projects, prima facie not leviable to tax under Commercial or Industrial Construction Service – Pre-deposit of Rs 15 crore towards duty and penalty waived and stay granted: CESTAT
BANGALORE, JULY 30, 2009: THE
appellant, M/s Nagarjuna Constructions entered into an agreement with the Gujarat Water Supply & Sewerage Board (GWSSB) for laying of long distance pipelines for drinking water supply projects in the State of Gujarat .

Dates of hearing are fixed as per decision of Tribunal and not at sweet will of parties or their representatives: CESTAT
BANGALORE, JULY 26, 2009: AN
appellant's representative who tried to get an “appointment” with the Tribunal on a date of his convenience, found the application dismissed.

Tribunal cannot give a go-bye to a patent error found in orders of lower authorities – composite penalty could not have been imposed under sections 76 and 78 of Finance Act, 1994 - CESTAT remands matter
MUMBAI, JULY 24, 2009: THE
appellant is engaged in storing empty containers.

Service Tax – Construction service – Service to self not taxable – No tax on ‘works contract' prior to 1.6.2007 – matter remanded: CESTAT
CHENNAI, JULY 22, 2009: M/s Prince Foundation Ltd. ( PFL ), the appellants are engaged in “commercial or industrial construction” and “construction of residential complex”.

For benefit of CENVAT credit on mobile phone, it is necessary that assessee establishes that phones were used exclusively for purposes connected with business or, directly or indirectly, in or in relation to manufacture of excisable goods - CESTAT orders pre-deposit
MUMBAI, JULY 17, 2009: IT was only two weeks ago that the CESTAT had in the case of Vikram Ispat [ 2009-TIOL-997-CESTAT-Mum ] come to the conclusion that

Constitutional validity of Service Tax on hire purchase and leasing upheld: Madras High Court
CHENNAI, JULY 16, 2009: THE writ petitioners are non banking financial companies engaged in the business of hire purchase and leasing. The senior counsel Mr. Aravind P. Datar appearing for the petitioners submitted that

Service Tax – Air Travel Agent – Tax collected on Basic Fare, but not paid to Government – Separate penalty under Section 76 and Section 78 imposable – Tax paid before Adjudication – penalty should be 25%: CESTAT
NEW DELHI, JULY 15, 2009: THE
Appellant is an Air Travel Agent, having its head office in Chandigarh and branch office in Delhi.

CENVAT Credit – Outward Transport – CESTAT does not consider binding precedents of HC order in Ambuja Cements and Tribunal Larger Bench decision in ABB Ltd case - both of which are binding - Tribunal has failed to address itself to applicability and binding effect: Allahabad HC
ALLAHABAD, JULY 13, 2009: APPELLANT was issued a notice dated 10.10.2007 to show cause as to why

When factual position was very plain like daylight, there was no reason for assessee to avail undue benefit of Cenvat Credit on Garden Maintenance Services – Exoneration cannot be claimed from penal liability: CESTAT
MUMBAI, JULY 10, 2009: THE two issues before the CESTAT in this appeal was whether the appellant was entitled to avail Cenvat Credit on following services

Applicant, country liquor manufacturer, enters into selling agency agreement with a HUF allowing them to use brand name ' Pahili Dhar ' – whether Service Tax payable under 'Intellectual Property Services' - CESTAT grants complete waiver of pre-deposit
MUMBAI, JULY 08, 2009: THE applicant is the manufacturer of sugar and molasses.  The applicant is also manufacturing country liquor under their brand name “ Pahili Dhar ” which is approved by the State Excise authority.  The applicant had entered into selling agency agreement with M/s Talreja Trade (HUF) with intention to obtain higher returns on their investments in their country liquor plant by increasing the sale of country liquor of their brand “ Pahili Dhar ” .

Cenvat Credit not available on Security services, Rent-a-cab services, Mobile Telephony services as appellants have not adduced evidence to establish nexus, if any, between the 'services' and the manufacture of final products: CESTAT
MUMBAI, JULY 01, 2009: WE
are in all probability going back to the Modvat era if the present turn of events is any indication.

Service Tax – Value of SIM cards to be included in value of taxable services; since SIM card are not goods, not liable to sales tax: High Court
KOCHI, JUNE 30, 2009: THIS
appeal is filed by the Commissioner of Central Excise and Customs challenging the order of the CESTAT, cancelling the demand of service tax on the value of SIM cards sold by the respondent to their mobile subscribers.

Section 80 of Finance Act, 1994 is unique provision not found in other statutes - If discretion is there not to impose penalty under Sec 80 ibid, discretion is as well there to impose lesser penalty: CESTAT
MUMBAI, JUNE 29, 2009: THE appellant is a Co-operative Bank registered as a service tax provider under the category of “Banking & Other Financial Services”. 

Producing products containing alcohol – whether Service Tax liability under Business Auxiliary Service – CESTAT orders pre-deposit of entire amount of Service Tax demand and interest
MUMBAI, JUNE 24, 2009: THE
issue is more than a year old and everyone felt that the Board Circular 249/1/2006-CX.4 dated 27.10.2008 had laid the matter to rest. In fact, we had in our column DDT-987 jocularly remarked that the Advocates could simply place the Board's letter before the CESTAT and laugh their way to the banks.

Exploration work carried out by PSU for Ministry of Mines for which only Grant-in-Aid is received – whether chargeable to Service Tax – CESTAT grants stay
MUMBAI, JUNE 17, 2009: THE
applicant is a Public Sector Undertaking and 100% shares are held by the President of India. 

Taking department and client for a bus ride by collecting but not depositing Service Tax into treasury – Penalty imposed pursuant to revision order is proper and legal: CESTAT
MUMBAI, JUNE 15, 2009: AN off beat survey by a group of MBA students in Maharashtra revealed that out of the companies and institutions booked for fraudulent business practices, a large number of them are operated under the names of gods and goddesses. Probably, the public is lured by these names and are confident that such companies are run by god fearing people who will not cause any harm to their investments.

Service Tax – C&F Agent – selling of tea for the principal – No return filed due to a bona fide belief – Demand barred by limitation – issue not decided on merits: CESTAT
NEW DELHI, JUNE 12, 2009: THE appellant had been receiving blended tea from their principals, namely M/s. The Luxmi Tea Company Limited, M/s. Sancheti Tea Company, M/s. Gillanders Arbuthnot & Co., etc.

Service Tax - Transfer of know-how of formulations and for bulk drugs – whether chargeable to Service Tax under category Scientific or Technical Consultancy – pre- deposit of Rs 2 Crores ordered: CESTAT
MUMBAI, JUNE 11, 2009: THE brief facts of the case are that the applicants are manufacturer of Medicaments. In September 2001, they decided to assign and transfer the trade marks of Antelol, Atelol, Aten, Aten-AM and Aten-IF to M/s Cadila Health Care Ltd. (CHCL) in terms of the deed of assignment dated 18.09.2001 perpetually for a consideration of Rs.70 crores.

Export of services – Rebate - Without questioning credit taken, eligibility to rebate cannot be questioned; Input services used in connection with procurement of other input services has to be treated necessarily as input services: CESTAT
NEW DELHI , JUNE 10, 2009: THE respondent through their various centres located at Mumbai, Pune , Bangalore and Gurgaon are engaged in rendering customer care services on behalf of foreign clients through the medium of telephone, e-mail and web based interaction. The services fall under the taxable category of business auxiliary service.

CESTAT Larger Bench –Preliminary objection by Revenue that matters shall be referred to Larger Bench only when a final view is arrived at by a division bench, referral at stay stage being illegal and invalid, rejected: CESTAT Larger Bench by Majority
NEW DELHI, JUNE 09, 2009: IN Customs, Excise and Service Tax matters, whenever there is a difference of opinion between two Coordinate Benches of the CESTAT, the Bench which differs with the views expressed or a decision given on any issue by another Coordinate Bench, refers the matter to the Registry to be placed before the President, CESTAT, outlining the points of difference and questions of law that may have to be settled by a Larger Bench and the President exercising his discretionary powers vested by Section 129C of the Customs Act, 1962 constitutes a Larger Bench to decide the issue.

CESTAT – reference to Third Member or Larger Bench – exclusive prerogative of President – can Service tax be recovered from GTA for the period November 1997 to June 1998 by notices issued after three years? Issue referred to Larger Bench: CESTAT President
NEW DELHI , JUNE 04, 2009: THIS issue is whether Service Tax in relation of goods transport service, received by a party during the period November 1997 to June 1998, can be recovered by issuing show cause notice in 2004.

Service Tax - Service received from abroad – No tax prior to 18.04.2006 – followed: Delhi HC
NEW DELHI, JUNE 03, 2009: THE
assessee is aggrieved by virtue of the fact that even though it was a recipient of taxable services of the nature of architectural services from a non-resident, viz. Callison Architecture Inc., USA, it was called upon to pay service tax in terms of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994.

Bottling of liquor amounts to manufacture – it is outside purview of Service Tax : High Court Larger Bench
JABALPUR , JUNE 02, 2009: THIS
has been an intaxicating matter for quite some time. And we had covered the issue extensively. Now the Larger Bench of the Madhya Pradesh High Court has over ruled a Division Bench decision and now liquor is again out of Service Tax. Several cases are pending in CESTAT, waiting for the outcome of this LB Decision.

Section 80 of Finance Act, 1994 - Ignorance of law cannot be accepted as reasonable cause for failure to pay service tax - Any tax is a compulsory levy and, therefore, a new levy is raised by Government only with prior notice to public: Tribunal
MUMBAI , MAY 29, 2009: VIDE notification 8/2002-ST dated 01.08.2002, it was notified that inter alia, “ Health Club & Fitness Centre ” would be chargeable to Service Tax from 16.08.2002.

Service tax – Servicing of light commercial vehicles not subject to levy of service tax: CESTAT
BANGALORE, MAY 27, 2009: THE appellants are engaged in the sale and service of motor vehicles, computers and spares. They are registered with service tax authorities under the category of ‘Servicing of Motor Vehicles', ‘Technical Testing and Analysis' and ‘Business Auxiliary Service'.

Once an order is passed under Sec 84 of Finance Act, 1994 within two years, provisions of Section 84(5) stand complied with - there is no further requirement that remand order should also be passed within two years: HC
CHANDIGARH , MAY 26, 2009: SECTION
84 of the Finance Act, 1994 empowers the Commissioner to pass revision order in respect of the orders passed by the adjudicating authority subordinate to him. As per sub-section 5 of Section 4, "No order under this section shall be passed after the expiry of two years from the date on which the order sought to be revised has been passed".

Cenvat Credit - Outdoor Catering Services employed in factory canteen is an Input Service - adjudicating and appellate authorities in department have got to scrupulously follow binding judicial precedents for sake of administering justice in their proceedings: Tribunal
MUMBAI, MAY 22, 2009: WHAT
can one say about a Commissioner(Appeals) who refuses to follow a Larger Bench decision of the Tribunal and endlessly argues that had the points being taken by him agitated before the Tribunal by the Revenue representative, the outcome would

Cenvat Credit – Garden Maintenance Service has no nexus, even remotely, to manufacture or clearance of excisable goods, hence cannot be called Input Service: Tribunal
MUMBAI, MAY 21, 2009: WINDS
of change , this aptly summarizes the present decision of the Tribunal.

Appellant paying Service Tax as a Consulting Engineer on services received from abroad - later claiming that they are correctly covered under IPR Service and claiming refund for past period – appellants are estopped from construing provisions of agreement to contra for a part of period: Tribunal 
MUMBAI, MAY 20, 2009: IN the words of the Tribunal, this is a unique case.

Cenvat Credit - Rent-a-Cab Service to employees – whether it can be treated as Input Service – Argument that transportation of anything other than goods stood impliedly excluded from 'input services' not made before Bench in Cable Corporation case – Matter referred to Division Bench
MUMBAI, MAY 08, 2009: THIS
appeal is headed for a long and tortuous journey.

Lottery tickets are not goods - service tax, if any, would be payable only with effect from May, 2008 and not with retrospective effect; Raising of revenue by State, by itself cannot amount to rendition of any service. If a substantive law is introduced, it will have no retrospective effect, even if it says 'for removal of doubts' - Government loses lottery: Supreme Court
NEW DELHI, MAY 06, 2009: WHETHER
sale, promotion and marketing of lottery tickets would be exigible to `Service Tax' within the meaning of the provisions of Section 65(105) of the Finance Act, 1994 is the question involved in this appeal which arises from a judgment and order dated 18.9.2007 passed by the High Court of Sikkim - 2007-TIOL-732-HC- SKM -ST .

Prior to 01.03.2007, there was no requirement at all to have received payment in foreign exchange to qualify as Export of Service in terms of Export of Service Rules, 2005: CESTAT
BANGALORE, MAY 05, 2009: DRAFTING
skills at nadir coupled with advocacy skills at peak – the CESTAT has delivered a beautiful treatise on Export of Service Rules, 2005. For export of services, is it necessary that the payment should be received in Foreign Currency? NO, until 01.03.2007, when the lacuna in the Export of Service Rules was finally removed by amending the Rules – held the Tribunal.

ST - penalty – enhanced penalty by Revision Authority Commissioner - There was no basis for Revisional Authority-cum-Commissioner to acquire jurisdiction to impose penalty: High Court
CHANDIGARH, MAY 01, 2009: THE
revenue is in appeal with the following question of law:-

Service Tax - Movement of limestone and rejects in the mining area covered by the entry ‘mining of mineral, oil, gas' and cannot be taxed under ‘cargo handling service' prior to 1 June 2007: CESTAT
CHENNAI, APR 29, 2009: M/s
Thriveni Earthmovers (P) Ltd. Salem (TEPL) undertook the activity of “loading and transportation of limestone and rejects to crusher and reject dumps respectively” in the Dholipatti limestone mines area during the period August 2002 to November 2006 for M/s. Chettinad Cements Corporation [CCC] under an agreement entered into with them. As per the agreement M/s. TEPL received Rs.9/- per tonne towards loading of limestone/rejects and Rs.27.50 per tonne towards transportation of the same.

Service Tax - Self assessment - When no order capable of being appealed against, had ever been passed, it cannot be said that assessee could file appeal against assessment order - Refund sanctioned proper: Tribunal
MUMBAI, APR 27, 2009: THE
brief facts of the case are that the amount of Service Tax payable was self assessed and paid by the assessee. The return in form ST-3 for the period October 2006 to March, 2007 was also filed. Later, they filed a refund claim of Rs.2,29,010/- and which was sanctioned by the lower authority and this order was upheld by the Commissioner(Appeals).

Service Tax - re-rubberizing charges collected for reconditioning of used old rollers – liable to pay service tax: Advance Ruling
NEW DELHI, APR 22, 2009: THE Applicant has sought ruling of the Authority on the following questions with respect to re-rubberising old and used rollers;-

Amount collected prior to levy of service tax and service rendered after the service becoming taxable - the appellant is liable to pay service tax - any other view would amount to rigorous construction of machinery provisions: CESTAT
NEW DELHI, APR 22, 2009: WHAT is the relevant date for deciding the service tax liability? Is it the date of receipt of payment ? Is it the date of rendering the service? Is it the date of issuing the bill or invoice? How does one decide to pay service tax when the tax rate has been reduced, say from 12% to 10%? There seems to be no end to the confusion prevailing on this important issue and nobody is really seriously concerned.

Commercial or Industrial construction under works contract is taxable only with effect from 1.6.2007 - CESTAT grants wavier of pre-deposit
CHENNAI, APR 14, 2009: SERVICE tax is often referred to as the tax of the future, but it is surely not going to have a decent past.

Cash Management Service is not taxable under Business Auxiliary Service prior to June 2007: CESTAT
BANGALORE, APR 12, 2009: BUSINESS Auxiliary Service - the most dreaded service among various taxable services. This is like a residual entry. If any service is not taxable under any other service, then demands are raised under BAS.

Service Tax nightmares for SEZ Developers and units!
NEW DELHI, APR 11, 2009: Prior
to the enactment of the SEZ Act, 2005 Service Tax on services supplied to Developers and units in a SEZ for the purpose of their authorized activities was exempted by Department of Revenue vide Notification No.4/2004.

Service Tax - sharing of knowledge shall not be called as consulting engineering service: CESTAT
NEW DELHI, APR 08, 2009: BOTH
the appellants have challenged the order of adjudication passed on 19.10.06 holding that M/s Avi Oil India Pvt. Ltd. (" Avi Oil") has paid consideration to Nyco SA of Paris (" NYCO ) for providing consulting Engineering Service. Adjudicating Authority on the basis of show-cause notice dated 19.4.05 proceeded to raise the levy against Nyco S.A. holding that Noticee as the Service provider in respect of consideration received for the impugned period from 7.7.97 to 16.8.02.

Service Tax – Tour operator – charges for hotel rooms not to be included; payment received in advance for services not taxable at that time – no tax – matter remanded: CESTAT
NEW DELHI, APR 06, 2009: THE
appellant is rendering services as Tour Operator in the following manner.

ST– supply of vessels to ONGC – mining or supply of tangible goods - Introduction of new entry and inclusion of certain services in that entry would presuppose that there was no earlier entry covering said services; supply of vessels not taxable prior to 16.5.2008: Bombay HC
MUMBAI, MAR 26, 2009: MEMBERS
of the 1st petitioner, Indian National Shipowners' Association provide services to major exploration and production operators (in India as well as in the international waters) with their various vessels that include offshore drilling rigs, offshore support vessels, harbour tugs and construction barges. The vessels provided by the members carry out various jobs, inter alia,

Service Tax – Service provided by one person, tax paid by another – Credit entitled: CESTAT
NEW DELHI, MAR 20, 2009: A is the service provider but not registered with the Department. B is a sister concern registered with the Department. A writes to the Department that B will pay the Service Tax on its behalf. The service recipient takes credit, which is objected to by the Department, even though A was later made to pay the Service Tax with interest!

Service Tax – Confusion prevailing in industry on liability of service tax on recipients for services received from offshore service provider prior to 01.01.2005 – Provisions of Sec 80 applicable – No penalty leviable when tax paid before issue of SCN: CESTAT
NEW DELHI, MAR 19, 2009: THE appellants, M/s Alstom Project (I) Ltd received IPR services from their offshore service provider, M/s Alstom Holdings Treasury, France during the period October 2004 to March 2005 and paid an amount of Rs. 49 lakhs towards service tax along with interest even before the issue of show cause notice.

Service Tax - Study Centres of University collecting fees directly from students – liable to pay tax under 'commercial coaching and training': CESTAT
CHENNAI, MAR 18, 2009: THE
appellants are engaged in coaching of students desirous of taking examinations conducted by the Alagappa University. The students are taught the various subjects as per the syllabus prescribed by the University for each course .

Service tax - a sale of technical know-how does not amount to rendering of any consulting engineering service: CESTAT
AHMEDABAD, MAR 07, 2009: M/s
Ambalal Sarabhai Enterprises Ltd (ASE) entered into an agreement dated 19 October 1999 with Sarabhai Piramal Pharmaceuticals Pvt. Ltd. ( SPPL ) and another agreement dated the 18th of June 2000 with Sarabhai Zydus Animal Health Ltd.

Service tax – exempted and taxable service – restriction on 20% credit not applicable to Capital Goods Credit - something positive, rather than mere inaction or failure on part of an assessee has to be proved before invoking extended limitation period: CESTAT
NEW DELHI, MAR 05, 2009: THE
appellant are engaged in providing cellular mobile telephone service to their clients, which during the period of dispute, was taxable under the heading service provided by telegraph authority in relation to a telephone connection, as defined under Section 65(105)(b) of the Finance Act, 1994. The appellant have set up Base Trans-receiver Station Towers (BTS Towers) at various locations in the circle which emit and receive wireless signals to and fro between a person availing cellular mobile telephone service through his SIM card which is installed in the handset. As soon as the person dials a particular number, the same is transmitted to such towers.

ST - Cenvat Credit on Outward Freight - Revenue disallows -held, Assessee is eligible for Credit: High Court
CHANDIGARH, MAR 04, 2009: IN
DDT-599 while reporting the Gujarat Ambuja case ( 2007-TIOL-539-CESTAT-DEL ) - No credit of Service Tax on outward freight - landmark order from Tribunal, we stated, Not everything is lost. The issue has to be taken to a Larger Bench/High Court/Supreme Court. In DDT-601 , while reporting that the same issue was before the Bangalore Bench, we suggested, Now what can this Bench do, since there is already a decision by another Bench? It has only two choices – agree with the Delhi Bench or refer the matter to a Larger Bench. That is exactly what the Bangalore Bench did in the India Cement case - 2007-TIOL-1248-CESTAT-BANG .

Trade looks to Department of Revenue to support Commerce Minister
NEW DELHI, 27 FEB: NEW DELHI,  27 FEB: The
Supplement to the Foreign Trade Policy announced yesterday by the Commerce Minister promised much but suffered from the perennial shortcoming of its key components being linked to anticipated action by the Department of Revenue.  If past experience is a guide such proposals invariably get bogged down in turf wars between the sponsoring department and revenue...

Service Tax – BBC (India) collecting advertisement charges for BBC (UK) – when same person is providing broadcasting service and also the Business auxiliary service latter cannot be treated as an input for the former – Not eligible for Credit: CESTAT
NEW DELHI, MAR 03, 2009: THE
Appellant are a wholly owned subsidiary of BBC, U.K. and as per their agreement with BBC, they are required to liaise with the advertisers (customers) in India for selling commercial advertising airtime on the BBC world channel, collect the advertisement revenue from the customers (advertisers) and remit it to BBC, U.K., after deduction/deposit of the withholding tax/service tax and for these services, they get a commission from BBC. Services provided by a "Broadcasting agency or organization" became taxable w.e.f. 16/07/01.

CENVAT Credit – Service Tax paid on Erection and Commissioning at Buyer's premises – entitled for Credit - Rule does not require that service has to be rendered at factory of manufacturer for purpose of eligibility of service tax credit: CESTAT
AHMEDABAD, MAR 02, 2009: DURING
the period from 30.12.02 to 07.06.05 the appellants had availed CENVAT credit of service tax paid by them on erection and commissioning services received by them from a service provider on account of erection, commissioning of the machines at the premises of the buyers of said machines.

Supplement to Foreign Trade Policy announced by Commerce Minister dissapoints
NEW DELHI, 26 FEB: On
the last day of Parliament today Commerce Minister listed various trade facilitation measures in the Supplement to the Foreign Trade Policy that was laid in Parliament.  While wide ranging measures touching export promotion schemes such as DEPB, FPS, VKGUY, EPCG etc. were announced, the general consensus was that it was a case of too little too late.  The critics drew strength from the fact that few measures such as those relating to EOUs were linked to notifications to be issued by Department of Revenue and from past experience it was unclear when and if at all these will be issued. To add to the sense of despondency was the fact that the EOUs were expecting a declaration that the sunset clause of the Income Tax...

Cenvat Credit - Service Tax paid on Air Travel Agent's Commission and Real Estate Consulting Services – issue arguable, Pre-deposit ordered by Tribunal
MUMBAI, FEB 26, 2009: LESSER the quantum of duty or Cenvat credit involved in a dispute, more problematic the case is – you do not usually find a decision which has final say in the matter, there are contrary decisions given by the same Bench and the issue boils over to such an extent that as a humble assessee you feel it is better to pay the amounts and buy peace rather than spending astronomical sums and taking the matter to the Apex Court. In fact, they would prefer to plough back the probable litigation expenses into their business! No doubt, there are some assessees who can afford and who will or should we say, should take their case to the highest court – it is a matter or principles, not merely a pyrrhic victory.

Commission received from 'reinsures' is taxable even before amendment to Finance Act in 2006: CESTAT
CHENNAI, FEB 25, 2009: THE appellant is an insurance broker and also is a reinsurance broker. He receives the commission from the reinsurer also. The question before the Tribunal was whether this commission received from the reinsurers is taxable prior to the amendment in 2006 to the Finance Act, 1994 wherein Sections 65(58) and 60(105)(zl) have been amended to specify “ insurer includes reinsurer”.

CBEC Circular puts Realty Sector in neutral gear!
BANGALORE, FEB 24, 2009: THE Board Circular No. 108/02/2009-ST dated January 29, 2009 has, perhaps unintentionally, given an impression to a large number of flat buyers that the service tax levy on the Residential Realty sector has been completely removed.

Service Tax – Taxable event is rendering of taxable service., not raising of invoice or payment: Gujarat HC
AHMEDABAD, FEB 19, 2009: CAN
you imagine Revenue raising a demand of service tax for the period when there was no tax was payable, simply for the reason that payment was received when it was taxable? It not only happened, but they went in appeal to the High Court after they lost it CESTAT.

SEZs get away without payment of Service Tax.
Chennai, FEB 13, 2009:Turf wars between the Department of Revenue and the Department of Commerce on various export promotion schemes are no secret. Unfortunately, despite various administrative decisions to resolve outstanding issues, the problem is far from over as brought out by a recent audit objection in the case of SEZ units in Tamil Nadu.

Service Tax Return Preparer Scheme 2009.
NEW DELHI, FEB 05, 2009:Finance Act, 2008 introduced a new Section 71 to the Finance Act, 1994 to bring in novel scheme for facilitating Service Tax providers and others liable to pay Service Tax, in meeting their procedural requirements.  This was the Service Tax Return Preparer Scheme.  The proposal should have been made effective from 11.5.2008 when the Finance Act, 2008 was enacted, but to the concern of all concerned, no further action was taken to practically implement the new scheme. Thankfully...

Overwhelming Growth in Exports from SEZs & EOUs in just four years.
NEW DELHI, FEB 03, 2009:At the Export Awards function organized by the Export Promotion Council for Council for EOUs & SEZs (EPCES)today, Shri Kamal Nath, Union Minister for Commerce & Industry informed that during the period 2003-2004 to 2007-2008, exports from SEZs and EOUs have increased from Rs. 42,641 crore to Rs. 221,066 crore, a growth of 418%...

Service Tax - Once tribunal has granted full waiver at least in two similarly situated cases, it would not be proper to take a different view and deny full waiver of pre-deposit : Bombay HC
MUMBAI, FEB 18, 2009: THE
petitioners are an ex-servicemen company incorporated under the Companies Act, 1956. The petitioners and similar other companies are incorporated pursuant to a Memorandum of Understanding entered into with the Ministry of Energy and the Ministry of Defence. The shares of the petitioners are held by war widows and disabled soldiers.

Review of Economy 2008-09 released by PMs Economic Advisory Council - pegs GDP growth at 7.1%
NEW DELHI, JAN 23, 2009 : The Chairman, Economic Advisory Council to Prime Minister, Dr. Suresh D. Tendulkar released the Review of the Economy 2008-09 in New Delhi today wherein 2008-09 GDP Growth was pegged at a sharply lower but still optimistic 7.1%. (as compared to 7.7% projected in July 2008 and actual of 9% during 2007-08). The lowering of this critical growth parameter was explained chiefly in terms of slowdown caused by painful ...

Stay order - Subsequent decision can be basis of modification - pre-deposit order modified: CESTAT
AHMEDABAD, DEC 29, 2008 : VIDE stay order No . S/1424/ WZB / Ahd /07 dated 18.12.2007, appellants were directed to deposit an amount of Rs. 40 Lakhs within a period of 10 weeks, out of the total confirmed duty of Rs. 1,30,10,476/-.

Service Tax - No review by Commissioner after order passed by Commissioner (A) - doctrine of merger is not a doctrine of universal or unlimited application, and it will depend on the nature of jurisdiction exercised by superior forum: High Court
JODHPUR, DEC 24, 2008 : THIS
was the question framed for the High Court's verdict.

Service Tax - Can a works contract be vivisected and service portion taxed - Matter referred to Third Member: CESTAT
AHMEDABAD, DEC 23, 2008 : THE appellants have entered into contracts with M/s Bharat Petroleum Corporation Limited ( BPCL ), M/s Gujarat Electricity Board ( GEB ) and M/s Indian Oil Corporation Limited ( IOCL ) wherein they have been awarded execution of the EPC (Engineering, Procurement and Construction) projects on turnkey basis by the said customers. Under these contracts, the appellant's responsibilities included residual process design, detailed engineering, procurement, supply, transportation, storage, fabrication, construction, installation, testing, pre-commissioning, commissioning, and performance guarantee test run.

Turnkey project cannot be bifurcated so as to hold that a part of contract would fall under category of Engineering Service, leviable to Service Tax: Tribunal
AHMEDABAD, DEC 23, 2008 : THE
issue simply refuses to die.

Service Tax - Appeal stay – pre-deposit - Commissioner (A) before passing any interim order, shall consider whether direction for deposit as pre-deposit condition would cause undue hardship: Madras HC
CHENNAI, DEC 19, 2008 : THE
writ petition is against the order of the respondent, the Commissioner of Central Excise (Appeals) ,Salem , made in Miscellaneous Order No.33 /2008, dated 30.7.2008 which was passed as interim order pending final decision in the appeal filed by the petitioner against the order of original authority dated 13.11.2007.

Service tax - Service abroad – tax in India – valid only from 18.4.2006 - provisions of Rule 2(1)(d)(iv) clearly invalid - Before enactment of Sec 66A there was no authority vested by law in Revenue to levy service tax on a person who is resident in India, but who receives services outside India: Bombay High Court
MUMBAI, DEC 17, 2008 : BY this Petition the Petitioners challenge the constitutional validity of the following:-

Service Tax - Amnesty Scheme was really no scheme, not a 37B order - If an unregistered person is to get benefit, registered person should also get - Large Number of uncontested Tribunal judgements to be followed: Rajasthan HC
JODHPUR, DEC 16, 2008: ALL
these five appeals involve common question of law, as to whether the assessee is entitled to the benefit of Amnesty Scheme, or not as per the circular issued by the Central Board of Excise & Customs dated 20.9.2004.

Service Tax realised from clients but not deposited in Government treasury - Conscious disregard to law – Tribunal says there is no alternative than to prevent future recurrence by appropriate dose of penalty
KOLKATA, DEC 15, 2008 : THE
appellant is before the Tribunal against the lower appellate authority's order upholding the order in original which confirmed the service tax demand of Rs.9,67,681/- with interest and penalty of Rs.100/- per day under section 76 of the Finance Act, 1994 and also a penalty of Rs.9,67,681/- under section 78.

Service Tax - Institutions imparting higher education and conferring degrees cannot be equated to ‘commercial' training centres engaged in coaching – Service tax demands amounting to Rs 57 Cr set aside: CESTAT
BANGALORE , DEC 12, 2008 : THE
appellants, ICFAI, Hyderabad, The ICFAIAN Foundation, Hyderabad and the ICFAI Universities at Raipur, Dehradun and Tripura were struck with a service tax demand to the tune of Rs. 57 crores including mandatory penalties by classifying their activities as ‘commercial coaching or training service'.

Service Tax - Irrespective of where service may be provided, location like registered office would determine jurisdiction of Commissioner - Revenue wins but then loses case before Tribunal as Members constituting Committee were not appointed by notification in official gazette
KOLKATA, DEC 11, 2008 : ON
5th October, 2008 we had reported the decision of the Tribunal in the case of Mall Exim Pvt. Ltd., [ 2008-TIOL-1642-CESTAT-KOL ] that had left the Revenue helpless, with the caption “ Additional Charge Commissioner (or for that matter any Commissioner) has no locus standi to file appeal before Tribunal as they are not appointed by notification by Board ”. 

Cosmetic surgery to remove unwanted hair is not taxable under 'Beauty Treatment' service: CESTAT
AHMEDABAD, DEC 10, 2008 : BEAUTY
is in the eye of the beholder. If the beholder is a taxman, all that is done to improve your look is a taxable service. The appellant is a Cosmetic Laser Center .

Service tax - C-DAC imparts advanced courses in IT which cannot be equated to institutes providing coaching for competitive exams - Profit motive relevant to classify an institution as commercial or otherwise - Activities not liable to tax under 'commercial coaching or training service': CESTAT
BANGALORE, DEC 09, 2008 : CENTRE
for Development of Advanced Computing (C-DAC) is a registered society working under the administrative control of the Ministry of Communications & Information Technology, Government of India.

Service tax - Registered society exempt from Income Tax does not come under purview of 'commercial coaching or training centre' - 'Commercial' in statutory definition qualifies 'coaching or training centre' and not 'coaching or training' - Service tax not leviable: CESTAT
BANGALORE, DEC 08, 2008: ADMINISTRATIVE
Staff College of India was established as a society in the year 1956 on the recommendation of a committee of All India Council for Technical Education at the initiative or the Government and the corporate world.

Distribution of Cenvat Credit of Input Services by Input Service Distributor (Head Office) to unit engaged in the manufacture of goods which are captively consumed by other establishments – Tribunal grants waiver of pre-deposit and remands matter to Commissioner(Appeals)
MUMBAI, NOV 26, 2008: THE
issue involved in this case is regarding the distribution of Cenvat credit of the Service Tax paid by applicants on the input services and advertisement services, received from various advertising agencies.

Construction of individual houses is not taxable under 'construction of complex service' or under 'works contract': CESTAT
CHENNAI, NOV 25, 2008 :  AS
per Section 65 (30a) “construction of complex” means :-

Service tax on port services - Homa Engineering differed with – matter goes to Larger Bench
CHENNAI, NOV 19, 2008 : IN
terms of Section 65(82) of the Finance Act, 1994, ‘Port Service' means any service rendered by a port or other port or any person authorized by such port or other port, in any manner, in relation to a vessel or goods.

Service tax - Daelim in dilemma - Whether turnkey projects can be vivisected? - matter goes to Larger Bench
NEW DELHI, NOV 18, 2008 : IN early 2003, in Daelim Industrial Co Ltd Vs CCE Vadodara, 2003-TIOL-110-CESTAT-DEL a question arose whether works contract can be vivisected and the service component could be subjected to levy of service

Service Tax – GTA – outward transport not input service? – Inox Air gets stay from High Court
CHENNAI, NOV 17, 2008 : A
few excerpts from Our Research Team story in March 2008 - Cenvat Credit on input services - the certainty of uncertainty! - will be useful in understanding the issue better....

Sodexho Pass Services gets relief from Service Tax liability for the period prior to 01.05.2006 – Finding a prima facie case, Tribunal grants waiver of pre-deposit and Stays recovery
MUMBAI, NOV 14, 2008 : BRIEF
facts of the case are that the applicants are issuing meal and gift vouchers to corporate clients and were receiving service charges....

ST - Photography service is works contract - it involves both sale and service, and sale portion cannot be included in taxable value of service: CESTAT
NEW DELHI, NOV 11, 2008 : THE
dispute before the CESTAT in these four appeals relates to determination of the value of photography service as a taxable service for the purpose of levy of service tax...

Service tax - Daelim in dilemma - Whether turnkey projects can be vivisected? - matter goes to Larger Bench
NEW DELHI, NOV 18, 2008 : IN early 2003, in Daelim Industrial Co Ltd Vs CCE Vadodara, 2003-TIOL-110-CESTAT-DEL a question arose whether works contract can be vivisected and the service component could be subjected to levy of service tax....

Writ petition against orders of pre- deposit clearly maintainable - Delhi High Court
NEW DELHI, NOV 10, 2008 : THE
question before the High Court is whether a writ petition under Article 226 of the Constitution of India is maintainable against the order of the Appellate Tribunal for Foreign Exchange....

Services of Financial leasing provided to clients – Whether service tax to be paid at rate prevailing at time of receipt of EMI or at time of entering lease agreements – Tribunal finds prima facie case in favour – waives pre-deposit
MUMBAI, NOV 07, 2008 : WHEREAS
the Apex Court decisions in Wallace Flour Mills [2002-TIOL-216-SC-CX] and Vazir Sultan Tobacco Co Ltd. [2002-TIOL-215-SC-CX] have laid down the law in respect of the rate of Central Excise duty to be applied in respect of manufactured goods cleared after withdrawal of exemption or consequent upon introduction of a new Tariff entry, when it comes to Service Tax, the debate continues....

Service Tax - Penalty on revision when matter is under appeal - Commissioner, who imposes penalty for violation of Finance Act, violates his own Finance Act ... Commissioner's order premature: CESTAT
CHENNAI, NOV 06, 2008 : COMMISSIONERS
… They are the top officers who administer the tax in the field. The Government and the Board repose a lot of faith and trust in them....

For an amount of credit of Rs.19.62 lakhs, no assessee would like to forego benefit of 67% of the abatement as granted by the Notification 01/06-ST – Prima facie case for grant of waiver of pre-deposit as credit already reversed: Tribunal
MUMBAI, NOV 04, 2008 : THE
applicants are engaged in providing construction services, i.e construction of commercial and industrial building, residential complexes and civil structures as defined in Section 65 of the Finance Act, 1994...

Plea of ignorance cannot be taken when fact remains that respondents collected service tax from their customers and pocketed the same - Penalties imposable - Tribunal allows revenue appeal
MUMBAI, NOV 02, 2008 : BRIEF
facts of the case are that the respondent is engaged in providing ‘Health Club and Fitness Service” which has been notified as taxable service on 16.08.2002....

Limitation Act cannot be invoked for condonation of delay in filing revision application under Section 47 of Delhi Sales Act: Delhi HC Larger Bench
NEW DELHI, OCT 31, 2008 : THE
question referred to the Larger Bench of the High Court was....

Service tax - management consultancy service - TDS deducted on payments made - Commissioner(A) upholds cum-duty concept - TDS is paid on behalf of assessee by service recipient, and there is no justification for excluding TDS from gross sum chargeable to service tax: Tribunal
NEW DELHI, OCT 28, 2008 : WHAT
is the sum on which service tax is payable? Is it gross amount collected from the service recipient? Are reimbursements of expenses claimed from the service recipient deductible from the gross sum....

Service Tax - payment made by Citibank to VISA - Prima facie no tax prior to April 2006 - Stay granted: CESTAT
CHENNAI, OCT 22, 2008 : THE
impugned demand is on the gross amount of Rs.28,60,43,445/- paid by Citibank (appellant) to ‘VISA’ as consideration for the service received from the latter....

Builders, Contractors charging 'one-time maintenance charges from their customers' liable to pay Service Tax under the category 'Maintenance or Repair services' - Issue arguable - Tribunal orders pre-deposit as no prima facie case made in favour
MUMBAI, OCT 21, 2008 : THE other day, on a property hunting spree as the rates were heading south, a prospective buyer went to the office of a reputed builder to check out the slew of discounts and freebies being offered this festive season....

Sales tax - if software whether customized or non-customized satisfies Rules as a 'goods', it will also be 'goods' for purpose of Sales Tax: Madras High Court
CHENNAI, OCTOBER 21, 2008 : THE
three writ petitions are filed by the same Company. W.P. No. 38544 of 2005 is filed seeking for a Declaration declaring that unbranded / customized software developed and sold by the petitioner with or without obligation, for system upgradation....

Board Circular not to prevail over Supreme Court Order - It is for Court to declare what particular provision of statute says and not for Executive - A circular which is contrary to statutory provisions has really no existence in law: SC Constitution Bench
NEW DELHI, OCT 20, 2008 : IT'S now probably the final word – Board Circulars not in tune with Supreme Court orders are not valid. The matter had been finally re-decided by the Supreme Court....

Service Tax - Port Services - CENVAT Credit - Steel and cement used for construction of jetty, not entitled; Credit entitled for mobile phone, rent a cab, CHA & Surveyor charges; Air-conditioners are capital goods, entitled for credit: CESTAT
AHMEDABAD, OCT 16, 2008 : THE
appellants are engaged in the providing port services, storage & warehousing services and cargo handling services, which are leviable to service tax....

Accepting order-in-original passed by Commissioner - Chief Commissioner committed mistake in taking decision at his own level for which interest of Revenue cannot suffer - conduct of Chief Commissioner may warrant inquiry at appropriate level: CESTAT
NEW DELHI, OCT 15, 2008 : HERE
is good News for Revenue – the acceptance by Chief Commissioners, of orders –in – original, prior to 11.5.2007 are declared to have no legal sanctity – so all of them can now be reviewed by the Committee of Chief Commissioners and appeals filed in the Tribunal – what more, delay will be condoned....

Service Tax - Sale and Purchase of Mutual Fund Units - Units are goods - not liable for Service Tax: CESTAT
NEW DELHI, OCT 15, 2008 : THIS
appeal by the Revenue is directed against the order-in-appeal setting aside the order of the adjudicating authority by which the refund claim of the respondent had been rejected. The Commissioner (Appeals)...

Service Tax - Chit Funds not taxable under 'Banking and other financial services' - Board Circular quashed: AP High Court
HYDERABAD, OCT 14, 2008 : IN
the writ petitions, the petitioners sought for a mandamus and assailing the correctness of CBEC circular No. 96/7/2007-ST (Reference Code. 034-04) dated 23.8.2007 and proceedings No. HAST 141/2007 dated 18.12.2007 issued by the Commissioner as being....

ST - demanding duty on activity of laying of pipeline interpreting it to be erection, commissioning and installation of a plant is totally misconceived and unacceptable - 'Erection, commissioning and installation' explained: CESTAT
CHENNAI, OCTOBER 13, 2008 : THE
Indian Hume Pipes Co. Ltd. (IHPL), Thanjavur, manufactures pre-stressed concrete pipes (PSC) and clears to Tamil Nadu Water Supply and Drainage Board (TWAD) for use in water supply projects.....

Service Tax - job work, procurement of raw material, packing of finished goods, documentation etc - not management consultant service: CESTAT
NEW DELHI, OCT 10, 2008 : THE
appellants are engaged in the manufacture of oil field equipment. M/s Varco Sara (India) Pvt. Limited is a sister concern of the appellant with some common Directors and under common management....

Service Tax – unjust enrichment - provisions of unjust enrichment as applicable under Central Excise do not apply in service tax cases: CESTAT
BANGALORE, OCT 08, 2008 : THIS
is a Revenue appeal against a very detailed reasoned order by a Commissioner (Appeals) granting refund of Service Tax paid by the assessee which could not be collected from the clients. The Revenue's contention is that the assessee had got themselves registered at Mumbai....

Services provided by outdoor caterer in canteen of manufacturer is an Input Service – CAS-4 aids Larger Bench in settling the issue
MUMBAI, OCT 07, 200
8 : WE recently reported the Tribunal decision in GKN Sinter Metals [2008-TIOL-1518-CESTAT-MUM] wherein the Bench had granted Stay in the matter of ‘Cenvat credit of Service Tax paid on Outdoor Catering Services’ as the issue had been referred to the Larger Bench in the GTC Industries Ltd. case....

ST - shifting or transportation of raw materials, waste materials and finished products from one place to another – not cargo handling: CESTAT
KOLKATA, OCT 06, 2008 : BEING
aggrieved by the first Appellate order dated 30.04.2007 passed by the Commissioner (Appeals) confirming order of adjudication holding that service of shifting/transportation of raw materials, waste materials and....

Tribunal says that Revenue ought not to have been aggrieved against this remand order of the Commissioner(Appeals)
MUMBAI, OCT 04, 2008 : THE
Revenue is aggrieved by a remand order passed by the Commissioner(Appeals). Incidentally, the issue concerns a refund claim of Cenvat credit filed by the respondents in terms of notification 5/2006-CE(N.T) dated 14.3.2006....

ST - For any appeal or application before CESTAT, a minimum fee of Rs 1000 has to be paid; No appeal maintainable against a clarificatory letter issued by an AC; Courts are not supposed to decide academic issues unless necessary for deciding the appeal: CESTAT
NEW DELHI, OCTOBER 03, 2008 : THERE
are two issues involved in this appeal....

Agents who undertake work of courier on behalf of Courier Company – not franchisees – Revenue loses Rs 8 Crore Service tax case: CESTAT
CHENNAI, OCT 01, 2008 : FRANCH
Express Network Pvt. Ltd. (FEN, appellants) is a courier agency with a wide network of above 45 hubs located at various stations in South India....

Service Tax - Computer training institute – Eligible for exemption prior to 16.6.2005 – notification not to have retrospective effect: CESTAT
NEW DELHI, SEPT 25, 2008 : THE
issue is whether the computer training institute providing vocational training would be entitled to benefit of exemption Notification No. 24/2004-ST dated 10th September 2004 as amended for the period from 10/09/2004 to 15/06/2005....

Service Tax – Tour Operator - arranging guide services, monument visit services, porter services, food services and general assistance services also covered by definition of 'tour operator service' – Since every Commissionerate had issued trade notices, longer period of limitation can be invoked: CESTAT
NEW DELHI, SEPT 23, 2008 : THE
Appellant, a sole proprietary concern of Mrs. Usha Jain, a resident of 195, Taj Road, Agra is engaged in providing Tour Operators Service at Agra, Gwalior, Jhansi, Khajuraho and Varanasi....

Service Tax – Outdoor catering – In premises of the client – liable to tax: CESTAT
NEW DELHI, SEPT 22, 2008 : THE
appellant is a caterer and has served food and beverages to the employees of M/s EID Parry (India) Ltd, Alwar as per agreement with the said company....

Tour operators using vehicles as stage carriages – still liable to pay Service tax as tour operator – since Government has issued Section 11C notification, no suppression can be alleged and no extended period can be invoked - CESTAT
NEW DELHI, SEPT 19, 2008 : THE
appellants have some vehicles for which the Regional Transport Authority has issued National permits for tour operations i.e. Tourist Permits. But due to some financial problem, the Appellants are not using these vehicles for operating tours, but are using these vehicles for transport of passengers from Jabalpur to various places up to Nagpur....

Cenvat credit of Service Tax paid on Outdoor Catering Services – Stay granted as matter referred to Larger Bench: Credit of S.Tax on Garden Maintenance Services – No prima facie case – Pre-deposit ordered: Tribunal
MUMBAI, SEPT 17, 2008 : IN the present appeal before the Single Member Bench of the Tribunal, the question is eligibility or otherwise as Cenvat Credit of the Service Tax  paid on Outdoor Catering Services and Garden Maintenance Services, the amounts involved being Rs.1,36,765/- and Rs.14,712/- respectively....

Cenvat credit of Service Tax paid on Outdoor Catering Services – Stay granted as matter referred to Larger Bench: Credit of S.Tax on Garden Maintenance Services – No prima facie case – Pre-deposit ordered: Tribunal
MUMBAI, SEPT 17, 2008 : IN the present appeal before the Single Member Bench of the Tribunal, the question is eligibility or otherwise as Cenvat Credit of the Service Tax  paid on Outdoor Catering Services and Garden Maintenance Services, the amounts involved being Rs.1,36,765/- and Rs.14,712/- respectively....

CBEC directs field formations to conduct survey to identify SEZ units not paying service tax on services provided outside SEZ
NEW DELHI, SEPT 16, 2008 : IN an interesting development the CBEC has asked its field formations to conduct a survey to identify SEZ units which have been providing taxable service to a recipient outside SEZ but not paying service tax duty correctly....

Service received from Foreign Service Provider not having office in India - Liable to tax only from 1.1.2005 - larger period of limitation and penalty justified: CESTAT
NEW DELHI, SEPT 16, 2008 : THE main point of dispute in this case is as to whether during the period from 01/8/02 to 16/6/05, the Appellants received Architect's services from M/s Callison Architecture Inc., U.S.A. (Callison), who do not have any office or business establishment in India and whether the Appellants....

SIM cards imported on payment of Customs duty and Sales tax also paid on sale thereof - SIM card value not addable in Assessable value of service provided - Tribunal
NEW DELHI, SEPT 16, 2008 : THE present appeals were heard by the Tribunal in view of the following remand order of the Bombay High Court....

Service Tax – Scientific and technical service – project report prepared before Service Tax was imposed, though delivered after - no tax: HC
NAINITAL, SEPT 15, 2008 : THE question of law involved in this appeal is as....

Service tax - Classification of taxable service - Services provided in relation to improvement of process technology and economical use of power - classifiable under 'Scientific and Technical Consultancy service' and not 'Management Consultant's service': CESTAT
NEW DELHI, SEPT 12, 2008 : STRANGE are the ways of the Service tax authorities. An assessee having multi-locational offices is engaged in providing taxable services from different locations....

Business Auxiliary Service – argument that since main service is not a taxable service, auxiliary service is also not taxable does not hold water - CESTAT orders Chennai Port Trust to pre-deposit
CHENNAI, SEPT 11, 2008 : THE appellant, Chennai Port Trust, under an agreement entered into with the Southern Railway, undertook the activity of transporting cargo between the dock and the entry point of the Port area. Upto , and from, the said entry point, the railway themselves undertook the transportation directly....

Manufacture involves production, but production may not result in manufacture - Activity of applying anti-corrosion coating on steel bars would amount to providing Business Auxiliary Service: CESTAT
AHMEDABAD, SEPT 11, 2008 : THE appellant is engaged in the activity of applying Fusion Bonded Epoxy Coating on reinforced steel bars supplied by their customers on job work basis....

Service Tax Cenvat Credit - Re-assessment of Input services cannot be done by the receiver’s jurisdictional authorities: Tribunal sets aside order with consequential relief
MUMBAI, SEPT 10, 2008 : WHEN we reported the Stay order of the Tribunal in the present case five months ago, we had quipped – Which way the final decision would go, is anyone’s guess – but we still prefer to wait!

Organizing Golf Tournaments on behalf of 'The Professional Golfers' Association of India' is not taxable under 'Event Management' Service: CESTAT
NEW DELHI, SEPT 09, 2008 : THE adhocism in service tax administration is beginning to take its toll. There is absolutely no organized system in place and there is no system devised to have a uniform classification of services....

Valiant efforts of Counsel for Revenue does not convince Bench - Rs Seven crore demand of Service Tax goes out of harbour - Ship Repair service is not Port Service: Tribunal
MUMBAI, SEPT 08, 2008 : THE
appellants are engaged in the activity of Ship Repairing at the dry dock built by them in an area specified by the Board of Trustees of the Mormugoa Port Trust, at Mormugao Harbour, under an Agreement entered into between them and the Board of Trustees of the Mormugoa Port Trust....

Del-credre agency service is not taxable under clearing and forwarding agent service: CESTAT
AHMEDABAD, SEPT 05, 2008 : THE issue involved in this case is as to whether services of Del-credre agency is covered under the category of Clearing and Forwarding (C&F) agency service and leviable to service tax....

Machinery given on lease - not liable for Service Tax under Banking and Financial service : CESTAT
AHMEDABAD, SEPT 04, 2008 : THE
revenue is in appeal against the order of the Commissioner (Appeals). The respondent assessee, who are engaged in the manufacture of excisable goods had given an extrusion machine on lease under an agreement....

Prima-facie, transaction charges paid to National Stock Exchange cannot be held to be reimbursible amounts from clients - Not excludible from service charges - Pre-deposit ordered: CESTAT
KOLKATA, SEPT 03, 2008: APPELLANT
is a registered stock broking member of National Stock Exchange. In addition to their brokerage they are also collecting transaction charges from their clients....

Applicant primarily providing Security Agency services coupled with other services such as management advice, group auditing and financial planning - Adjudicating authority treating it as single service of Security Agency - Tribunal orders pre-deposit of Rs.15 lakhs considering service tax liability only on security agency services
MUMBAI, SEPT 02, 2008 : HERE
are some extracts from the Board letters issued in the recent past on the subject of classification [and valuation?] of composite services....

Service Tax – notice issued under Sec 74 instead of Section 73 – issue not raised before lower authorities – cannot be raised for first time before HC – no substantial question of law: High Court
CHANDIGARH, MAY 10, 2008 : M/s
Onkar Travels (P) Ltd., respondent in this case, is registered under Service Tax in the category of Air Travel Agent....

Booking orders in India for foreign principal is export of services: CESTAT
BANGALORE, MAY 09, 2008 : THE
appellants filed a refund claim with the Department to the tune of Rs. 9,87,235/- on the ground that the services rendered by them amounts to Export....

ST - All activities of C&F agent not covered under C&F service – Revenue appeal dismissed: HC
CHANDIGARH, MAY 08, 2008 : THE
revenue has filed this appeal challenging the order dated 20-6-2005 passed by the CESTAT raising the following substantial questions of law....

Export of Taxable Services effected prior to 14.03.2006 also entitled for Rule 5 CCR, 2004 refund: Tribunal
MUMBAI, MAY 06, 2008 : TILL
the day the notification 4/2006-CE(N.T) dated 14.03.2006 came on to the scene & substituted the earlier rule 5 of the Cenvat Credit Rules, 2004, only a manufacturer could claim a refund under the said rule....

Security Agency Services – Tax cannot be assessed on assumptions and presumptions - just by looking at returns no one can state whether appellants were paying tax on gross amounts or supervision charges – Demand not hit by limitation: Tribunal
NEW DELHI, MAY 02, 2008 : THIS
is a decision which Revenue would like to treasure for it will help them in arguing all such cases where Limitation is the root cause of their disappointment....

Service Tax – consignment stockist for GAIL – CF Agent? – Matter remanded by Supreme Court
NEW DELHI, APR 30, 2008 : SHORT
question arising in the appeal is whether in the facts and circumstances of this case, the petitioner renders any services so as to incur the liability to pay service tax....

Revenue has a reason to smile - RPG Enterprises Ltd loses Rs 5 Cr Service Tax case – Tribunal upholds demand by holding that they are Management Consultants
MUMBAI, APR 28, 2008 : A
two-year wait has brought cheer for Revenue. We had reported the Tribunal decision [2006-TIOL-385-CESTAT-Mum]....

Service Tax – back office services not IT Services, but BAS – input service credit and refund of unutilized credit eligible – refund cannot be denied just because rules are amended: CESTAT
BANGALORE, APR 25, 2008 : IF
you thought two brains are better than one, this case proves the opposite. If you remember the Rule 5 (pertaining to refund) of Cenvat Credit Rules, was amended by Notification 4/2006-Central Excise (N.T.)....

Construction of residential complexes – main contractor liable to pay Service Tax even if sub-contractor also pays tax; no deductions when tax is discharged under composition scheme: Advance Ruling
NEW DELHI, APR 22, 2008 : LAST week we carried an important order from the Authority for Advance Ruling - 2008-TIOL-03- ARA -ST . The same applicant was before the Authority with another set of four questions....

Service Tax – sale of constructed houses – liable to pay Service Tax under 'construction service' and not under 'works contract' : Advance Ruling
NEW DELHI, APR 17, 2008 : THE
questions before the AAR were 1. Whether the activity of booking the residential units to be undertaken by the applicant is a taxable service liable to Service Tax under the provisions of section 65 (105) of the Finance Act, 1994....

Service Tax - Port services - Velji order of Ahmedabad bench upheld : Supreme Court
NEW DELHI, APR 09, 2008 : IN
Homa Engineering Works - 2007-TIOL-769-CESTAT-MUM, the Tribunal had held that Ship repairs done in port is not a port service : Board Circular not in accordance with law; In VELJI P SONS (AGENCIES) PVT LTD....

Input Service - Assessee manufactures Tractors, 3-wheeler and M.V’s parts - Repair and Maintenance Services incurred on Motor Vehicles provided to employees and officers prima facie entitled as Cenvat Credit : Tribunal
MUMBAI, APR 08, 2008 : DECIDING
the fate of entitlement or otherwise of Cenvat Credit on a variety of “input services” is now becoming as exciting as ever.

Service Tax - Commissioner (A) reducing penalty in terms of Section 80 of Finance Act, 1994 not improper - Following judicial discipline does not mean re-writing of the statute : Tribunal
MUMBAI, APR 02, 2008 : IN
the case of Equator Property Managers Pvt. Ltd. [2007-TIOL-1891-CESTAT-MUM], the Tribunal held that the provisions of section 76 of the Finance Act, 1994 are also subject to the provisions of section 80 of the Finance Act...

Cenvat Credit - Re-assessment of input services cannot be done by the receiver’s jurisdictional authorities : Tribunal
MUMBAI, APR 01, 2008 : IN
the years gone by, modvat disputes were the order of the day. Fortunately, the Cenvat credit rules and the liberal rules of interpretation that came to be followed resulted in these disputes dying a natural death....

Govt extends Service Tax Refund Scheme to three more taxable services for exporters
NEW DELHI, APR 01, 2008 : IN
yet another exporter-friendly step, the Govt has extended the service tax refund scheme to three more taxable services. This is in response to the sustained appreciation of rupee against dollar, and the same hurting our exports....

Money grows in ATM s - Revenue loses another high profile Service Tax case - Introduction of a new entry for purpose of levy of tax presupposes that it was not covered by any of pre-existing entries : Tribunal
CHENNAI, MAR 31, 2008 : THE
assessee had executed contracts awarded by various banks for supply, installation and commissioning of Automated Teller Machines (ATMs) and, accordingly, received their charges from the banks....

Do our policy makers really 'understand' the software industry?
MARCH 28, 2008: By S Sivakumar, CA: A
provocative title for an article, indeed. We must thank the makers of our great Constitution for guaranteeing us the freedom of speech which makes it possible for us to find an appropriate title to write a piece on what seems, the Ministry’s utter lack of understanding of the software industry....

Service Tax: Security Services utilized by appellant for residential colony - whether eligible for Cenvat Credit - Matter remanded as Commissioner(A) has passed a non-speaking order : Tribunal
MUMBAI, MAR 19, 2008 : THE
issue in this appeal before the Tribunal is regarding availment of Cenvat credit on the input service (security agency) utilized by the appellants for residential colony which is adjacent to the factory....

Exempted and dutiable services – common input services - Not maintaining separate records cannot be a ground for denying Input Service Credit in respect of service tax paid on services referred in Rule 6(5) of CCRs, 2004 : Tribunal
MUMBAI, MAR 24, 2008 : RULE 6
of the CCR, 2004 cannot but continue to hog the limelight. Sub-Rule 6(5) of the Cenvat Credit Rules, 2004 reads thus....

Input Service Credit – Since showrooms of manufacturer are the 'place of removal', service tax paid on input services up to that stage are available for Cenvat credit : Tribunal
MUMBAI, MAR 19, 2008 : THE
appellant manufactured shoes in their factory premises and cleared the same on payment of duty to their own retail outlets. For manufacture of such goods....

Increase in Works Contract Service Tax rate to 4% - A case of promisory estoppel?
By S Sivakumar, CA: AT
the time the Composition Scheme was introduced for works contractors in the 2007-08 Budget, it was widely believed that the specified service tax rate of 2% was applicable for the whole of the works contracts covered by the Schem

Food for thought – Service Tax paid by Outdoor Caterers for running Canteen Services in a factory is an Input Service for availing Credit : Tribunal
MUMBAI, MAR 18, 2008 : WE
are hungry. Just three months back, we reported the Tribunal decision in the case of Bajaj Electricals [2007-TIOL-1866-CESTAT-MUM], where the Single Member Bench observed that prima facie there was no case....

Cenvat Credit on input services - the certainty of uncertainty!
NEW DELHI, MAR 14, 2008: IN
2004, in a move towards integration of taxes on goods and services, the Cenvat credit rules were amended to allow credit across goods and services....

Service Tax Return Preparers and best judgement assessment!
MARCH 5, 2008: By V Unnikrishnan: THE
newly inserted section 71 in theFinance Act,1994 as per sub-clause (D) of Clause 85 of the Finance Bill,2008 proposes of enabling an assessee to authorize a Service Tax Return Preparer (STRP) to prepare and furnish the return under section 70....

Film theatres now come under Central Excise control - through Service Tax
MARCH 4, 2008: By TIOL Research Team: SOME
years ago, there used to be central excise duty on electricity produced and during those days, all cinema theatres were under Central Excise control because the officers had to quantify and collect duty on electricity produced through electric generators....

New Service related to supply of tangible goods to open a Pandora's box
MARCH 3, 2008: By S Sivakumar, CA: MR Chidambaram
has managed to come out with a new taxable service, which is bound to crease a lot of controversies. Section 65(105)(zzzzj) is proposed to read as follows....

Let's welcome 'Service Tax Return Preparer' Scheme
NEW DELHI, MARCH 02, 2008 : THE
Customs House Agent has been in place to help importers and exporters attend to clearance formalities of their goods with the Customs.....

Arrear recovery and service tax dispute resolution scheme, 2008
MARCH 2, 2008: By V Unnikrishnan: THE
changes in Service tax law w.r.t GTA services, eligibility of cenvat credit for GTA as an output service; no penalty under section 78 when penalty u/s 76 has been imposed etc. are really pro-assessee and welcomed by all.

Service Tax Dispute Settlement : A Barmecidal feast!
MARCH 1, 2008: By V R Balasubramani & Pradyumna G H, Advocates: THE
Service Tax Dispute Settlement Scheme announced by the Finance Minster in his Budget Speech has not come a day sooner. However, what does the government seek to achieve by extending the scheme to disputes involving a paltry sum of Rs 25,000/-?

Service Tax - Goods Transport Agency is no longer an output service
NEW DELHI, FEB 29, 2008 : CONTROVERSIES
and Service Tax on goods transport seem to be born together. While the first episode of the experiment ended in utter confusion and short sighted amendments, the second avatar is no different.

No Cenvat Credit on service tax paid on outward fright from the Place of removal
NEW DELHI, FEB 29, 2008 : RULE 2(1)
of the Cenvat credit rules has been a subject matter of controversy on the eligibility of Cenvat credit on the goods transport service used for removal of goods from the place of removal.

FM accepts TIOL recommendation; introduces Dispute Settlement Scheme for small service taxpayers
NEW DELHI, FEB 29, 2008 : THE
instant jubilation in the ranks of small and marginal farmers, the salaried class, and the manufacturing sector triggered off by the grand announcements by the Finance Minister cast a shadow of despondency over the service secto

Tribunal orders grant of interest beyond the date of refund just because it’s earlier order was not challenged and had attained finality
MUMBAI, FEB 27, 2008 : SURPRISED
with the caption. Read on....

Service Tax : Solve the Kashmir problem!
MUMBAI, FEB 26, 2008 : EVER
since Independence, we are struck with the Kashmir problem. If the South Block cannot solve the problem, can the North Block do it?

Appellant, a State Finance Corporation, having paid Service tax liability along with interest before issuance of SCN - Provisions of Section 80 of Finance Act, 1994 can be invoked – No cause for imposition of penalty : Tribunal
MUMBAI, FEB 21, 2008 : IT
is good that the provisions of Section 83 of the Finance Act, 1994 concerning Service Tax do not cover under its umbrella the provisions of Section 35B of the CEA’44. Reason being that the second proviso to Section 35B of the CEA’44 stipulates that the Tribunal has the discretion to refuse to admit an appeal if the duty, penalty or fine is less than fifty thousand rupees....

Service Tax – advertising – agency commission received from broadcasting and print media – not taxable : CESTAT
NEW DELHI, FEB 20, 2008 : THE
appellants render taxable service under the category of advertising agency service. They entered into contract with their clients for providing advertisement agency service....

Rental space for keeping, storing, stuffing or consolidation of export cargo into containers – Services prima facie not liable to Tax under Storage and Warehousing Services : Tribunal
MUMBAI, FEB 19, 2008 : MERELY
because an activity is excluded from being charged to Service Tax under a particular category does not imply that the activity is not taxable under some other category – this is the Departmental way of looking at things - inwardly that is!....

No need to reverse credit on GTA service if inputs are returned to the supplier : CESTAT
CHENNAI, FEB 15, 2008 : THIS
is yet another case involving service tax on goods transport service. The assessee availed credit of the service tax paid on Goods transport service used for inward transportation of inputs....

Service Tax paid on outward transportation - Liquid Oxygen, Nitrogen and Medicinal gas delivered to customers in transport vehicles maintained at sub-zero temperatures – Cenvat Credit – As matter referred to Larger Bench, pre-deposit totally waived on Modification application : Tribunal
MUMBAI, FEB 13, 2008 : LAST
November, while reporting the Tribunal decision in Inox Air Products Ltd. [2007-TIOL-1829-CESTAT-MUM], we had mentioned thus....

Service Tax - Export of services - Service providers are eligible for refund of un-utilised credit under Rule 5 of Cenvat Credit Rules even for exports made prior to 14.3.2006, if refund claims were filed after 14.3.2006 : CESTAT
MUMBAI, FEB 12, 2008 : ARE
service providers eligible for refund of un-utilised credit under Rule 5 of Cenvat Credit Rules even for exports made prior to 14.03.2006? ‘YES’, says CESTAT....

Input Services? - Canteen or Catering services provided to employees may be obligatory as per Factories Act but it cannot automatically lead to conclusion that the same relates to business activity – Credit not available : Tribunal
MUMBAI, FEB 06, 2008 : CONSISTENCY
requires you to be as ignorant today as you were a year ago. – Bernard Berenson, Notebook, 1892....

Service Tax – paid for a wrong service does not cease to be Service Tax – rigours of Section 11B applicable for refund - CESTAT
CHENNAI, JAN 31, 2008 : THE
appellants had undertaken maintenance of certain apartments and collected maintenance charges from the apartment owners from April, 2000 to January, 2005....

Management Institute run by charitable trust is not commercial training or coaching centre - Healthcare and education are social services essential to provide minimum quality of life to people of a country : CESTAT
CHENNAI, JAN 25, 2008 : GREAT
Lakes Institute of Management, Chennai (GLIM), conducts Post Graduate Programme in Management (PGPM), a 12 months fulltime Programme and Executive MBA, a part time course.

Employees working on rolls of applicant diverted to undertake manufacturing activities of another company – Prima facie Services provided cannot be held to be taxable as “Manpower Recruitment or Supply agency” : Tribunal
MUMBAI, JAN 23, 2008 : SERVICE
tax has been demanded from the applicants on the ground that they were providing services of ‘manpower recruitment agency’ to M/s Bajaj Organic Chemicals Limited for the period March, 2003 to July, 2006.

Free After Sales Service – Service Tax not payable by dealers as it is 'Free' and the same has already been subjected to Sales Tax : CESTAT
KOLKATA, JAN 22, 2008 : ALL
said and done, it was after all a bad idea to give the administrative controls of Service Tax to the Central Excise department, complained a netizen....

Service Tax – GTA muddle – receipt of goods into factory is input service; clearance of goods from factory is output service? - Consignee factory eligible for credit even if consignor pays Service Tax on goods transport : CESTAT
AHMEDABAD, JAN 21, 2008 : THE
jinxed tax that is Service Tax on GTA, is haunting the tax administration, courts and the hapless assessees for more than a decade....

In an indivisible contract no VAT if Service Tax is paid : Supreme Court
NEW DELHI, JAN 16, 2008 : WHETHER
the charges collected towards the services for evolution of prototype conceptual design (i.e. creation of concept), on which service tax had been paid under the Finance Act, 1994 as amended from time to time is liable to tax under the Karnataka Value Added Tax Act, 2003 is the question involved in this appeal before the Supreme Court....

Service Tax - mechanical transfer of coal from coal face to tippers - does not come under purview of cargo handing service : CESTAT
KOLKATA, JAN 15, 2008 : TWO
identical cases are decided in this appeal....

Service Tax - Even wayside painters would, for an amount, quickly paint out advertisements for anyone who engages them and they would surely not become an 'advertising agency' : CESTAT
NEW DELHI, DEC 27, 2007 : A
good name is to be chosen over great riches. It's tax free! - Anon...

FAQ on FBT applicable to ESOPs scores over FAQ on Service Tax, a poor compilation of pedestrian information in public domain
MUMBAI, DEC 22, 2007 : ''THERE
are better things to do in life; take a walk on the beach, escort your child or grandchild to a mall instead of trying to work your way around the government....

Reimbursements of salaries and infrastructural expenses cannot be said to be amounts
CHENNAI, DEC 20, 2007 : THE
appellants were engaged by M/s ICICI Bank Ltd to market the bank's personal loan products, for which service the appellants employed marketing executives who took up the task of telemarketing, contacting prospective customers, process documentation etc.

Execution of work not included under words, 'advice' & 'consultancy' in definition of Consulting Engineer whether amounts realized for execution of work will be covered under Service Tax Matter referred to Third Member
AHMEDABAD, DEC 19, 2007 : AN
order in Revision was passed by the Commissioner against the Order-in-original passed by Dy. Commissioner (Service Tax) Vadodara....

GTA Service - Cenvat Credit - It is convention that when matter is referred to Larger Bench, Stay of recovery of amount is granted and there is no reason to deviate from such convention : Tribunal
MUMBAI, DEC 18, 2007 : IN
the case of India Cements Ltd. [2007-TIOL-1248-CESTAT-BANG], the Tribunal came to the conclusion that the transportation from the factory to the destination of the buyer becomes an 'outward transportation' & accordingly in terms of Rule 2(1)(ii)....

Service Tax- liability of Indian recipient to pay tax for service provided by foreigner - Indian recipient also liable to pay interest; Revenue wins case with costs : Supreme Court
NEW DELHI, DEC 14, 2007 : THE
KSEB did not pay Service Tax on the services received by it from a foreign service provider. They have no dispute on the Service Tax liability, but they appeal that interest if payable is to be paid by the service provider and not service recipient....

Port providing storage not warehouse keeper - Storage being integral part of port service cannot be taxed separately - if a service is liable to tax, it cannot be held that newly-entered service was covered under any pre-existing service : Cestat
AHMEDABAD, DEC 11, 2007 : THE
appellant is registered as minor port and is rendering the port services. Some intelligence officers of Central Excise and Service Tax visited the premises of the appellant and after investigation came to the conclusion that during the period 16 th August 2002 to 30 th June 2003....

Service Tax - Section 76 is also subject to provisions of Section 80 - Commissioner(A) has discretion in reducing penalty - Revenue appeal dismissed : CESTAT
MUMBAI, DEC 10, 2007 : THE
assessee had neither filed any returns nor deposited the Service Tax collected from their clients. Later, they admitted their tax liability and discharged the same....

Outdoor Catering Services provided in company canteen - does it indirectly assist manufacturing activities? - Cenvat Credit eligibility - Tribunal orders pre-deposit
MUMBAI, DEC 05, 2007: ON
29 th November 2007, the Urban Land Ceiling (Regulation) Act was repealed by the Maharashtra State Legislature in the ongoing winter session at Nagpur....

Stevedoring licence issued by Port cannot be treated as authorization by port under Section 42 of Major Port Trust Act services of loading and unloading of cargo provided by stevedores are not port services : CESTAT
BANGALORE, DEC 03, 2007 : AS per the definition of port service given under the Finance Act...

Service Tax - Air Cargo Agents - whether under BAS - Tribunal refuses to grant out of turn hearing to Revenue
MUMBAI, NOV 30, 2007 : SOME
time back, nearly two years ago to be precise, the omnipresent authority in Service Tax matters called DGST passed an order V/DGST/21-30/Legal/04/2004 dated 13.12.2005 holding that services rendered under IATA Cargo Agency....

Pay out amount received from bank for services rendered chargeable to service tax under head 'BAS' - Matter remanded to Commissioner(A) for deciding it on merits : Tribunal
NEW DELHI, NOV 29, 2007 : REVENUE
is in appeal against the orders of the Appellate Commissioner by which he has set aside the orders of the lower authority.

ST paid on outward transportation - Liquid Oxygen, Nitrogenand medicinal gas delivered in transport vehicles maintained at sub-zero temp - Cenvat Credit prima facie doubtful - Tribunal orders pre-deposit
MUMBAI, NOV 28, 2007 : IN
the case of India Cements Ltd. [2007-TIOL-1248-CESTAT-BANG] the issue was whether Cenvat credit can be taken on the Service Tax paid on goods transport services availed by the appellants for the transport of the final products....

Service Tax - Review vs appeal - AC imposes penalty, Commissioner (A) confirms, CESTAT sets aside, jurisdictional Commissioner enhances penalty, CESTAT sets aside, Revenue appeals to Bombay HC - appeal dismissed
MUMBAI, NOV 20, 2007 : THE
provisions of review and appeal in Service Tax are playing havoc with litigation hungry revenue officers going full steam....

Service Tax - CHA and Steamer Agent cannot be classified under Business Auxiliary Service : Tribunal
BANGALORE, NOV 08, 2007 : THIS appeal arises from Order-in-Appeal confirming Service tax on the Custom House Agent on the ground that they are rendering services of arranging shipment of the export cargo and negotiating the same with shipping lines on behalf of their clients....

ST on Coaching Classes - when language of amending Notification does not restrict exemption only to standard text books sold, notification cannot be whittled down by Circular - Prima facie case for total waiver of pre-deposit of Rs 2.8 Cr : Tribunal
MUMBAI, NOV 6, 2007 : ''CORRECT guidance, well planned and consistent hard work lead to a bright future!" - brags an advertisement of a reputed coaching class splattered on hoardings all across aamchi Mumbai....

Since Service Tax on Scientific or Technical Consultancy services was levied only on July 16, 2001, no tax payable for earlier period under Consulting Engineer's Services : Tribunal
MUMBAI, NOV 01, 2007 : IN
the present case, an Audit was conducted in August 2001 on the records of a 15 year-old bulk drug manufacturer who also had a research and development department recognized by the Department of Scientific & Industrial Research, Govt. of India....

Service Tax - revision order passed by Commissioner after two years - Tribunal cannot review its own order : CESTAT
NEW DELHI, OCT 29, 2007 : HERE
is a strange situation. As per section 84 of the Finance Act, 1994, the Commissioner can review any order passed by any subordinate and pass a revision order. This revision order is appealable to the CESTAT. But there is a condition that the Commissioner cannot pass a revision order after two years of the original order....

Non-inclusion of TR-6 challan issued by GTA as a notified document in rule 9 of CCR, 2004 prior to insertion by Not 28/2005-CE is an inadvertent omission - Credit allowed for past period : Tribunal
MUMBAI, OCT 25, 2007 : AS
if the DGST and the bombastic clarifications issued by it on 30.03.2005 & its withdrawal on 11.04.2005 & the confirmation of this withdrawal by its letter dated 03.04.2006, all pertaining...

Unitisation, strapping, packeting or packing customers' goods at their premises or sites - taxable under 'cargo handling service : Tribunal
KOLKATA, OCT 24, 2007 : THE
Appellants are engaged in the business of material handling equipment and parts thereof and they also carry out activities like unitisation, strapping, packeting or packing, the customers' goods at their premises or sites...

Collection of blood samples on behalf of principal lab is not Business Auxiliary Service : High Court
CHANDIGARH, OCT 23, 2007 : THIS
appeal filed by the revenue challenges order dated 30.08.2006, passed by the Customs, Excise and Service Tax Appellate Tribunal, holding that the services rendered by the assessee respondent do not fall in any of the category specified in the definition of 'Business Auxiliary Service' as per Sub-section 19 of Section 65 of the Finance Act, 1994....

Whether a contract for construction is works contract on a turnkey basis and not a consultancy contract - conflicting decisions - matter referred to Larger Bench of Tribunal
MUMBAI, OCT 19, 2007 : THE
brief facts of the case are that the respondents who are engaged in providing taxable services of storage and warehousing, port services and consulting engineering services, filed a claim for refund of Rs.11,27,498/- under the head....

Service Tax - Advertising Service - Incentive received from media, not taxable : Tribunal
NEW DELHI, OCT 18, 2007 : THE
appellants were covered under the category of advertising agencies. The Audit found that they had collected incentives from M/s. Malayala Manorama. The Revenue has considered these receipts as extra commission and had proceeded to recover Service Tax on these amounts by invoking larger period....

ST - if appeal is not filed within time limit, a legal right accrues to other side that issue reached finality - Such legal right cannot be simply brushed aside by filing application after one year and to condone the delay on ground that similar issue is pending before SC : Madras HC
CHENNAI, OCT 17, 2007 : THE
Revenue Department's urge for litigation is unimaginable. Look at this case. The Commissioner accepted an order passed by the Commissioner (Appeals). After about 10 months he gets a letter from his boss....

Gold smith - Technical Certification Services? - Stay granted by Tribunal
CHENNAI, OCT 11, 2007 : INGENUITY
of the Department in exploring new areas of taxation, knows no bounds. You go to a Bank for a loan pledging your gold ornaments and you fin d a goldsmith there to test the purity of the gold....

Mighty department demands Rs 4,650 as service tax from an 81 year old as consulting engineer - CESTAT vacates demand
CHENNAI, OCT 10, 2007 : HE
must be 21 years when India attained freedom. But age can not be a reason for giving any relaxation from the tax or giving any special treatment, may be except some discount on railway fare under senior citizen category....

ST - Appellants appointed as commission agents to procure orders - Not warehousing goods or taking care of clearance of goods from manufacturer's place - not C & F agent : Tribunal by majority order
NEW DELHI, OCT 08, 2007 : FOR
the period 1999-2000 to 2003-December 2004, the appellant’s records were scrutinized by the C.Ex. authorities and a notice was issued directing the appellant to show cause....

GTA service during period Nov 16, 1997 to June 1, 1998 - SCN issued in 2002 is not valid for period extended by SC : Tribunal
NEW DELHI, OCT 06, 2007 : YET
another GTA case - the period of dispute is from 16-11-1997 to 1-6-1998 and the amount involved is a princely sum of Rs. 9,981/- for which the mighty Revenue is in appeal....

Explanation to Clause 82 of Finance Bill, 2005 comes to rescue - Appellant not liable to interest and penalty : Tribunal
MUMBAI, OCT 05, 2007 : THE issue before Tribunal was whether the appellants were liable to pay interest on the confirmed duty demand of Rs.1,29,212/- and also liable to penal action....

Services used at site of windmills cannot be held as input services by unit in Jamnagar - Cenvat Credit not available : Tribunal
AHMEDABAD, OCT 03, 2007 : THE
relevant facts of the case are:
a) The appellant has a manufacturing unit at Jamnagar. They had set up windmills at a place Kurunga, about 100 kms. away from their factory....

Service Tax - AC cannot rectify an order after Commissioner (A) has dismissed appeal - Commissioner (A) also cannot rectify that order as his earlier order was not challenged : Cestat
AHMEDABAD, OCT 01, 2007 : THE
Assistant Commissioner imposed penalty for delayed payment of Service Tax. The Commissioner (Appeals) dismissed the appeal for non-compliance of pre deposit....

Boilers supplied on lease contract - Interest collected from buyers on unpaid amount of credit not chargeable to service tax under head 'Banking and Financial Services' - clause (Viii) of Explanation 1 to Sec 67 clarificatory in nature : Tribunal
MUMBAI, SEPT 28, 2007 : THE
appellants are registered manufacturers of Industrial boilers, heaters, pollution control equipments, heat pumps, chillers etc. They are also registered under Service Tax for providing services under the five categories viz....

Collection of blood samples on behalf of principal lab, not Business Auxiliary Service - it is technical testing and is excluded from service tax by definition which excludes testing for human beings or animals : HC
CHANDIGARH, SEPT 27, 2007 : THERE
is a lab known as M/s Dr. Lal Path Lab (P) Ltd., Collection Centre at ST1: CITY Ludhiana, which is engaged in the collection of blood, urine and stool samples on behalf of its Principal M/s Dr. Lal Path Lab (P) Ltd, New Delhi for....

Custom House Agent cannot be classified under Port Services - Every licensed person cannot be brought under net of port services : Tribunal
AHMEDABAD, SEPT 26, 2007 : THE
appellant is engaged in the activities of Customs House Agent services and holds a valid licence from the Customs under the provisions of Customs House Agent Licensing Regulations....

Institute of Banking Personnel Selection is not a commercial concern -Service Tax demand of more than Rs one crore set aside by Tribunal
MUMBAI, SEPT 20, 2007 : IF
BCCI [2007-TIOL-684-CESTAT-MUM] & Breach Candy Swimming Bath Trust [2006-TIOL-1468-CESTAT-MUM] are not commercial concerns, then how can Institute of Banking Personnel Selection (IBPS) be one!

Delay in payment of service tax - imposition of penalty u/s 76 justified - Tribunal should not have interfered : Karnataka HC
BANGALORE, SEPT 14, 2007 : THE
appeal by Revenue before the High Court is against the CESTAT order reducing the penalty, for non-payment of Service Tax. The Adjudicating authority imposed a penalty of Rs.3,03,300/ @Rs.100 per day....

Credit on input service - Outward freight - Gujarat Ambuja disagreed with - referred to Larger Bench
BANGALORE, AUG 30, 2007 : THE
Delhi Bench of the Tribunal had in Gujarat Ambuja case held that outward freight is not input service. We had carried many comments and articles on the issue. Now the Bangalore Bench has taken a different view....

Parliament has legislative competence to levy service tax on CAs, Cost Accountants and architects - Professional tax and service tax operate in different spheres : Supreme Court
NEW DELHI, AUG 23, 2007 : THIS
appeal questions the competence of Parliament to levy service tax on practising chartered accountants and architects having regard to Entry 60 List II of the Seventh Schedule to the Constitution and Article 276 of the Constitution....

Service Tax - User fee collected by airport from international passengers not liable to tax under airport services - in fact no service at all provided to passenger : CESTAT
BANGALORE , AUG 22, 2007 : THE
appellant M/s. Cochin International Airport known as CIAL are providing various services to air passengers and have been registered with the Central Excise department.....

Service Tax - Commission received from foreign airlines in Indian rupees - not export of service; failure to file return was enough to invoke extended period under old Sec 73 : Tribunal
CHENNAI, AUG 21, 2007 : THE
dispute is service tax on "Overriding Commission" (ORC) received by the appellants in Indian currency from Malaysian Airlines who had appointed the appellants as "General Sales Agent" (GSA) for India....

Service Tax - Cellular Telephone Service - Credit on cell site towers or parts of towers and pre-fabricated shelters prima facie available : Tribunal
MUMBAI, AUG 16, 2007 : CELLULAR
companies raised a toast on 9 th September 2005 when the Tribunal pronounced its order - " Cell site/BTS site/BSC site are not excisable - the activity of installing and commissioning a cell site cannot be an activity of manufacture....

Credit is allowable of service tax paid by Commission agents since they prima facie promote sale of manufactured goods : Tribunal
MUMBAI, AUG 14, 2007 : THE
brief facts of the case are that the applicant is engaged in the activity of manufacturing as well as trading of footwear and its accessories. In addition to manufacturing and selling such footwear, the applicant also trades in shoes manufactured....

Appellate authority has not given any reasoning to set aside penalties imposed u/s 78 of Finance Act, 1994 - Point of limitation can be taken at any time - Matter remanded by Tribunal
MUMBAI, AUG 3, 2007 : THE
brief facts of the case are that the respondents are provider of services as "Stock Broker". The respondents got registered and were paying Service Tax on the stock broking activities till June 96.....

Yet another overlap of services - 'Interior decoration' or 'finishing services under commercial construction service'? Cestat orders pre-deposit of Rs 10 lakhs
BANGALORE, AUG 2, 2007 : CLASSIFICATION
of the services is going to be the major area of disputes in Service Tax. With 100 services in the tax net and without any codification of the services, the correct classification of any particular service is bone of contention between....

Service Tax paid on GTA service during 1997-98 - No refund : Tribunal
NEW DELHI, JULY 31, 2007 : THE
contention of the appellant was that, the amounts of Service Tax were paid under protest in respect of the service of Goods Transport Operators for the period between 16.11.1997 and 02.06.1998, and that the said amounts....

ST - Courier Service - No requirement of payment in FC before June 16, 2005 - No tax leviable for export of services - Penalty of Rs 4.5 Cr is a savage one - Adjudicating authorities cannot go only by Board clarification : Tribunal
BANGALORE, JULY 30, 2007 : THE
appellants are providing taxable services under the category of "Courier Agency Services". Revenue proceeded against them on the ground that they did not pay Service Tax for the period from 15.3.2005 to 15.06.2005....

Service tax on international in-bound roamers - whether exempted or hit by provisions of Rule 6(3)(c) of Credit Rules - Tribunal directs Hutch to pre-deposit Rs 40 lakh in cash for obtaining stay
NEW DELHI, JULY 27, 2007 : A
demand of Rs 2.60 crores was confirmed by the Commissioner of Customs & Central Excise, Meerut-I on 31 st January 2007 against the above Service provider. It is alleged that the assessee had incorrectly availed Cenvat Credit of Rs.81.89....

Cestat orders Idea Mobile Communications to pay Rs 50 lakhs for getting stay in Service Tax case
NEW DELHI, JULY 25, 2007 : THE
CCE, Meerut, passed an order in January 2007 confirming a demand of Rs.1.74 crores on the ground that the mobile communication company had wrongly taken/availed/utilized Cenvat credit on the inputs service received on the basis of....

Highly aggrieved Tata Technologies finds solace in Tribunal order - Rs 1.77 Cr Service Tax demand set aside
MUMBAI, JULY 18, 2007 : HAD
it not been for the Tribunal making such a remark, we would not have known that Tata Technologies was highly aggrieved with what appears to be a routine confirmation of duty demand by the Commissioner of Central Excise.....

Services from foreign service provider - legality of tax by Indian receiver prior to Jan 1, 2005 - matter likely to go to LB - partial stay granted by Tribunal
NEW DELHI, JULY 12, 2007 : THE
Foreign Service controversy is still on. A little history. As per Section 68(2) of the Finance Act, 1994, the government can notify any person other than the service provider to be the tax payer for the notified services....

Service Tax - GTA during 1997-98 - tax was payable by recipient during the time - penalty waived : Cestat
NEW DELHI, JULY 06, 2007 : THE
ghost of Service Tax on GTA refuses to leave our hallowed portals of law....

Consignment agent performing some functions of clearing and forwarding is a C & F agent - The loud thud of a drum cannot erase the soft whispers of a flute which also forms a part of orchestra - Tribunal goes musical!
NEW DELHI, JULY 05, 2007 : IN
an order replete with musical analogies, and apparently music to the Revenue, the Tribunal allowed a Revenue appeal. But what is music to one may be a jarring note the others....

ST - operating and maintaining power plant does not involve taxable services of management or engineering consultancy, C and F or BAS - Generation of electricity is within the meaning of manufacture under Central Excise : CESTAT
CHENNAI, JULY 04, 2007 : RUNNING
of power plant - is it covered under 1) management constancy, 2) engineering consultancy....

Maersk India gets reprieve - Tribunal grants Stay from recovery of Rs 18 Cr Service Tax demand and Rs 25 Cr penalty
MUMBAI, JULY 03, 2007 : THE
appellants had claimed the benefit of the exemption notification no. 6/99-ST and notification no. 21/2003-ST on the ground that they had received payment for taxable services rendered by them in convertible foreign exchange....

Will taking photographs for voter identity cards, and bus passes fall under scope of photography service? CESTAT grants stay and full waiver
BANGALORE, JUNE 18, 2007 : SOMETIMES
the angle from which the service is rendered may play a vital role in deciding the service tax liability. Take this case of an appellant from whom the revenue demanded nearly Rs 41 lakhs as service tax under the photography service....

Will taking photographs for voter identity cards, and bus passes fall under scope of photography service? CESTAT grants stay and full waiver
BANGALORE, JUNE 18, 2007 : SOMETIMES
the angle from which the service is rendered may play a vital role in deciding the service tax liability. Take this case of an appellant from whom the revenue demanded nearly Rs 41 lakhs as service tax under the photography service....

Unloading and transferring of LPG gas from ship to tanks, cannot get attracted under Services of Storage and Warehousing : Tribunal
MUMBAI, JUNE 15, 2007 : THE
brief facts of the case are that the appellant had constructed their own Jetty in Ratnagiri Dist. and was operating from there in the capacity as an importer and importing raw materials for use in the manufacture of their final products....

No service tax on services rendered abroad before April 18, 2006 : Tribunal
AHMEDABAD, JUNE 14, 2007 : IT
has finally come! There is no Service Tax on services rendered abroad. In a landmark judgement, the Ahmedabad Bench of the Tribunal has held that services received by Indians abroad are not taxable prior to 18.4.2006 when Section 66A was inserted into the Finance Act, 1994....

Service Tax - Hire purchase and hire purchase financing are not synonymous - Hire purchase finance not covered by Finance Act, 1994 - Bajaj Auto Finance wins Rs 26 Cr case in Tribunal
MUMBAI, JUNE 13, 2007 : SIX
months ago, we broke the story that the Tribunal in the case of Bajaj Auto Finance [2006-TIOL-1473-CESTAT-MUM] has granted waiver of pre-deposit of Service Tax of Rs 26 crores by opining that prima facie, hire purchase and hire purchase financing are not synonymous....

Ship repairs done in port is not a port service : Board Circular not in accordance with law : Tribunal
MUMBAI, JUNE 11, 2007 : IF
Finance Bills, especially the provisions relating to imposition of new taxes, are passed by the august houses of Parliament in a routine manner without any discussion, there will never be a chance for the citizens of India....

India International Centre is not a Mandap Keeper : Cestat
NEW DELHI, JUNE 08, 2007 : THE
appeal is against the order whereby demand of service tax was confirmed and penalties were imposed on the ground that appellants were providing services as Mandap keeper....

Another service tax demand bites dust - Since service tax liability on Works Contract is brought into tax net from 2007, it can be argued that these services were not to be taxed earlier : Tribunal
AHMEDABAD, JUNE 06, 2007 : IF
one were to conduct a study on the reasons for the department losing Service Tax cases in the Tribunal, apart from all other creative demands that saw their death, one reason that occupies the coveted slot is premature demands....

Service Tax on outward freight - a doomed credit?
NEW DELHI, JUNE 05, 2007 : IT's
almost over, the Tribunal has again held that a manufacturer is not eligible to take credit of the Service Tax paid on outward transport of his goods....

Since appellant manufactures and removes concentrates for which no advertisement is undertaken they are not entitled to take credit of service tax paid on advertisement of aerated waters : Tribunal
MUMBAI, JUNE 01, 2007 : THE
appellant is engaged in manufacture of concentrates of non alcoholic beverages base. The same are being cleared by them on payment of duty to various bottlers for manufacture of aerated waters/beverages....

ST on construction of power project - Drawing and design part of contract not taxable as 'engineering consultancy' - Rs 20 Cr demand stayed
NEW DELHI, MAY 29, 2007 : THE
appellant submits before CESTAT that....

Howzzzzzzat! BCCI emphatically wins Rs 30 Cr Service Tax case - Not a commercial concern and selling telecast rights is not advertising : Tribunal
By TIOL News Service

MUMBAI, MAY 24, 2007 : OUR
cricketers may not be doing all that well, but the richest sports body in the world, the BCCI is doing fine. It has just won a Rs 30 Cr case....

CBEC notifies new Services from June 1; Industry given option to pay service tax on 2% of total value of works contract; Property tax abatement given for ST on immovable property
NEW DELHI, MAY 22, 2007 : THE
CBEC has today notified the seven new Services brought under the tax net from June 1, 2007. A week's time has been given to the service providers to get familiar with the provisions of the law for better complian

Neither Act nor Rules grant any immunity to foreign service provider from service tax for taxable services provided in India - Liability of recipient to pay ST cannot arise merely from income tax being deducted at source : Tribunal
NEW DELHI, MAY 21, 2007 : IN
a judgment that can have far-reaching consequences, the Tribunal has held as above....

Credit can be utilised for payment of Service Tax on GTA Service received for clearance of final products from factory : Cestat
CHENNAI, MAY 16, 2007 : WITH
the issuance of recent 37-B order by CBEC on GTA service, it is believed that the litigation on GTA service came to an end, but it appears that the litigation is far from over....

CBEC decides to bury 48 Service Tax Circulars and Instructions on recommendation of Rustagi Committee
NEW DELHI, MAY 10, 2007 : TAKING
the T R Rustagi Committee report on review of Service Tax Circulars to a logical end the CBEC has today decided to withdraw 48 Circulars, Clarifications and Instructions issued on matters of service tax law and procedures in the past....

Service Tax case of management consultant Mckinsey India - OPE abatement - Tribunal upholds demand of Rs 1.09 Cr; drops Rs 4.46 Cr and remands demand of Rs 1.79 Cr
MUMBAI, MAY 03, 2007 : IN
October 2005, while reporting this case [2005-TIOL-939-CESTAT-MUM] when it had come before the Tribunal for stay, we had opined that only the coming days would foretell what the future holds for this Management Consultant....

Once Service Tax amount is being collected from customers, it cannot be said that there is a financial problem in paying the same to Revenue - penalty enhanced by Tribunal
MUMBAI, APR 30, 2007 : THIS
case should bring cheers to the Revenue. Truly speaking, the appeal itself would have been thrown to the bin for it was badly delayed by 104 days, but the Tribunal was satisfied with the cause of delay....

Service Tax - GTA - Can service tax be paid from Cenvat Credit? Yes, affirms Cestat
NEW DELHI, APR 27, 2007 : A
manufacturer paying excise duty and availing cenvat credit also pays Service Tax on goods transport for his inward and outward movement of goods. Whether he is eligible for credit of Service Tax paid for outward transport is a contentious issue. But the issue here is different....

Revenue wins big case; Service tax on outward freight - no cenvat credit; says Cestat
NEW DELHI, APR 24, 2007 : THE dispute in the appeal is in regard to service tax paid on the freight incurred on the transportation of cement sold by the appellant. The sale is on FOR destination basis and freight is paid by the appellant....

Marketing Development is 'business auxiliary service, not 'management consultancy' : Cestat
NEW DELHI, APR 19, 2007 : THE appellant Glaxo Smithkline Consumer Healthcare Ltd entered into an agreement on 18th January 1996 with their group company Glaxo Smithkline Asia Pvt. Ltd., formerly known as Smithkline Bichem Asia Pvt. Ltd....

Once bitten, I am not shy, would like to be bitten again - Service Tax - Evidence in the form of data on Compact Disc is admissible : Tribunal
MUMBAI, APR 17, 2007 : SEVEN months ago, we had while reporting the decision of the Tribunal in the case of CCE & ST, Bangalore vs. Standard Chartered Bank [2006-TIOL-1162-CESTAT-BANG], introduced the story with the following words - "This case has all the circus that only Revenue can perform....

Colgate Palmolive directed to deposit Rs 50 lakh in Cenvat Credit 'Input service distributor' case by Tribunal
MUMBAI, APR 13, 2007 : PROBABLY
this is the first case concerning cenvat credit passed on by an Input Service Distributor to the manufacturer and the scope of its utilization in the context of rules 2(1) & rule 6 of the Cenvat Credit Rules, 2004....

Commercial or industrial construction service - Abatement - Does value, include cost of free materials supplied by client? - Interim stay granted : Madras HC
CHENNAI, APR 10, 2007 : AS per Notification No. 1/2006- Service Tax, Dated: March, 1, 2006, for construction service, an abatement of 67% from the value is allowed for calculating the tax payable....

No service tax and excise duty for same activity - transmission apparatus for radio telephony not excisable : Tribunal
CHENNAI, APR, 05, 2007 : AIRCEL
imported various components under an agreement with ECPL to install and integrate a system for providing radio telephony...

Service Tax - Mutual Funds can be regarded as 'goods' so as to be covered under Not 13/2003-ST - Matter remanded by Tribunal
MUMBAI, APR 04, 2007 : THE
appellant is a registered Service Tax assessee under the category "Business Auxiliary Services". They filed a refund claim on the ground that the commission received from sales of Mutual funds is entitled for exemption from....

Sale of SIM cards - Transaction being accepted by assessee to be a sale of goods - Question of considering the activity as BAS cannot be considered - Service Tax cannot be levied on value of SIM cards : Tribunal
MUMBAI, APR 03, 2007 : THE
appellants herein are providers of cellular telephone services which services are covered by the definition under section 65(74) of Chapter V of the Finance Act, 1994, as amended....

Prima facie, services beyond the stage of manufacturing and clearance of goods from factory could not be input services : Tribunal
AHMEDABAD, APR, 02, 2007 : THE
applicant is a manufacturer of cement and clinker and was availing Cenvat credit of duty paid on inputs, capital goods and input services, under Rule 3 of the Cenvat Credit Rules, 2004, On scrutiny by the department, it was noticed

Reliance Telecom heaves a sigh of relief - Tribunal holds no telegraph authority can be treated as subscriber of another telegraph authority for link established between one authority and another
AHMEDABAD, MAR 30, 2007 : RELYING
on its own judgement in the of Fascel Ltd case (2007-TIOL-208-CESTAT-AHM), the Ahmedabad Bench of the Tribunal has reiterated that....

Service Tax - Appeal filed by DC and the order passed by Commissioner (A) on that appeal is a nullity : Tribunal
MUMBAI, MAR 23, 2007 : HAPLESS
- this word can aptly sum the feeling of the Ld. DR who represents the Revenue's case in appeals filed by the parties...

Service Tax - Abatement - Denial of Cenvat credit is not discriminatory - Not 1/2006 is valid and does not enhance tax liability : Karnataka HC
BANGALORE, MAR 19, 2007 : THE writ petitioner is engaged in the service of construction of complexes attracting Service Tax. He is challenging the Notification No. 1/2006 ? Service Tax dated 1.3.2006 in as mush as it disallows the cenvat credit....

Service Tax - Photography services - Valuation - If certain goods are consumed, then value of these goods cannot be included in value of services for levy of tax : Tribunal
BANGALORE, MAR 15, 2007 : THE
appellants render Photography service, which are liable to Service Tax under the Finance Act, 1994. The issue involved in all these appeals is the correct valuation of the services rendered by the appellants for the purpose of discharge of Service Tax....

An indication of things to come - Tribunal refuses to condone delay in filing service tax appeal of 208 days
MUMBAI, MAR 13, 2007 : OUR
two Budget stories concerning the drastic reduction in Review period for Customs & Central Excise cases evoked stinging criticism from some quarters and appreciation from some for highlighting the difficult times the departmental officers are going through in these non-sensitive "sections"....

Should Press Trust of India pay Service Tax?
NEW DELHI, MAR 11, 2007 : A
netizen recently brought to our notice that India's premier news agency - "Press Trust of India (PTI)" was selling online photographs of important day's events through its website www.ptinews.com....

Levy of Service Tax on Tour Operator held legal by Karnataka HC
BANGALORE, MAR 06, 2007 : THE
Appellant is a tourist operator operating in South India. The Union Government imposed service tax on the tour operators. Pursuant to that, notice was issued to the Appellant to register under Section 69 of the Finance Act, 1994....

Service Tax - Appeal filed by DC and the order passed by Commissioner (A) on that appeal is a nullity : Tribunal
MUMBAI, MAR 23, 2007 : HAPLESS
- this word can aptly sum the feeling of the Ld. DR who represents the Revenue's case in appeals filed by the parties....

Service Tax - Abatement - Denial of Cenvat credit is not discriminatory - Not 1/2006 is valid and does not enhance tax liability: Karnataka HC
BANGALORE, MAR 19, 2007 : THE
writ petitioner is engaged in the service of construction of complexes attracting Service Tax. He is challenging the Notification No. 1/2006 ? Service Tax dated 1.3.2006 in as mush as it disallows the cenvat credit....

Service Tax - Photography services - Valuation - If certain goods are consumed, then value of these goods cannot be included in value of services for levy of tax : Tribunal
BANGALORE, MAR 15, 2007 : THE
appellants render Photography service, which are liable to Service Tax under the Finance Act, 1994. The issue involved in all these appeals is the correct valuation of the services rendered by the appellants for the purpose of discharge of Service Tax....

An indication of things to come - Tribunal refuses to condone delay in filing service tax appeal of 208 days
MUMBAI, MAR 13, 2007 : OUR
two Budget stories concerning the drastic reduction in Review period for Customs & Central Excise cases evoked stinging criticism from some quarters and appreciation from some for highlighting the difficult times the departmental officers are going through in these non-sensitive "sections"....

Levy of Service Tax on Tour Operator held legal by Karnataka HC
BANGALORE, MAR 06, 2007 : THE
Appellant is a tourist operator operating in South India. The Union Government imposed service tax on the tour operators. Pursuant to that, notice was issued to the Appellant to register....

Service Tax - Much ado about nothing!
THE Budget fever this year was significantly focused on service tax. There were news reports about 44 new services; service tax on actors with liability on producers; service tax on lawyers; service tax deduction at source; increase in rate of service tax; etc....

Service Tax on Works Contract : A coffee - toffee tussle in the offing!
IN our triology on simultaneous levy of sales tax and service tax, we have elaborately dealt with the issue of levy of service tax on Works contracts. Relying ofn the Apex Court judgement in the case of BHARAT SANCHAR NIGAM LTD Vs UNION OF INDIA (2006-TIOL-15-SC-CT-LB)....

FM stresses on inclusive growth, keeps tax rates largely unaltered; hikes exemption limits for small service providers and SSI units
NEW DELHI , FEB 28, 2007 : BHARAT
Nirman and agriculture reverberated the Lower House today. The Finance Minister was magnanimous enough to bring a glee to the common man, much burdened with high prices and lower productivity....

No hike in Service Tax rate but 50% hike in education cess
NEW DELHI, FEB 28, 2007 : GOVT
bids adiu to Rs 2 lakhs service Tax assesses. 2 Lakh more assesses may join the club. SSI exemption limit enhanced to 8 Lakhs from the present 4 Lakhs....

Service Tax - Mechanical and statistical disposal of appeal by Commissioner (A) - Remanded for passing speaking order
KOLKATA, FEB 22, 2007 : A Commissioner (Appeals) passed a common appellate order in respect of three assessees in respect of penalties. And strangely Revenue is in appeal before the Tribunal....

Fascel wins Rs 16 Cr case - Inter connectivity is not liable to service tax - No telegraph authority can be treated as subscriber of another telegraph authority in relation to link established between one to another authority : Cestat
AHMEDABAD, FEB 14, 2007 : THE demand was Rs. 16 Crores and so was the penalty. The issue is Service Tax for inter connectivity provided by telephone companies....

Commissioner's notice instead of review not proper - no larger period for subsequent notices : Cestat
BANGALORE, FEB 08, 2007 : THE facts are strange.
An Assistant Commissioner, Service Tax passed an order in 2003 whereby he dropped proceedings against the assessee appellant. The Commissioner was aggrieved and as per law, he could have reviewed the order. Instead of doing that he issued a Show Cause Notice alleging suppression and invoking the larger period, which he promptly confirmed. The matter is before the Tribunal....

Service Tax ? Security Agency ? In guise of rectification of mistake, entire complexion of the order cannot be altered under section 74 of the Finance Act ? CESTAT
BANGALORE, FEB 07, 2007 : STRANGE are the ways of Revenue ? in harassing poor victims for small amounts of money. Cost of litigation is never an issue with the government. Here is a case where a small company formed to help poor ex-service men, was hauled up by Service Tax and the determined soldier had to go all the way up to the CESTAT to get justice....

Refund of Service Tax erroneously paid - In case of mutual mistake committed by Appellant and Revenue, Sec 17 of Limitation Act applies and not Sec 11B of Excise Act : Tribunal
MUMBAI, FEB 05, 2007 : INits eagerness to expand the coverage of Service Tax, the Central government has been re-defining a number of services notified in Section 65 of the Finance Act, 1994. On occasions, this exercise results in utter chaos and the benefit usually goes to the service provider based on the argument that the effect of amendment would be prospective only....

Multi System Operator is liable to pay Service Tax : P&H High Court
CHANDIGARH, FEB 01, 2007 : THE writ petition seeks quashing of demand of service tax on the ground that service tax was not leviable on 'Multi System Operator' (MSO). The High Court observed....

Service Tax - Merely because stay application was dismissed does not mean that the appeal is dismissed : Cestat
MUMBAI, JAN 31, 2007 : ANXIETY is a common human quality. This is what precisely happened in the following Service Tax case we are reporting....

When Service Tax is not payable, no return needs to be filed - penalty set aside : Cestat
CHENNAI, JAN 30, 2007 : THE appellant in this case received technical know-how from its collaborator M/s. Halla Climate Control (HCC), Taejon, South Korea. It was felt that they had to pay Service Tax under the category of 'Consulting Engineer Service' on the technical know-how fees paid to HCC. However the lower authorities dropped the demand based on Notification No. 18/2002, dated 16.12.2002, which says....

Service Tax - international courier - before reversing a decision, a show cause notice is mandatory : Tribunal
The appellant is engaged in the business of International Courier....

Service Tax - Ongoing activity - no advance ruling, says Authority
NEW DELHI, JAN 23, 2007 : THE applicant Orissa Chrome Export and Mining Company Limited filed this application seeking advance ruling on the following questions.

Tribunal lambasts Revenue, respondent's counsel and says it does not understand why the Tribunal passed the earlier order!
MUMBAI, JAN 12, 2007 : FRANKLY speaking, we do not know whether we should report this Order of the Tribunal although it has been released for publication under rule 27 of the CESTAT (Procedure) Rules, 1982. The reason being it blames the system altogether, the Revenue, the Respondent & so also the Tribunal and has something more....

Licensing 'know how' is not service but technical assistance connected with know how is consulting engineer service : Cestat
NEW DELHI, JAN 08, 2007 : THIS
judgement is a classic treatise (the briefest possible) on the concept of intellectual property rights in relation to "know how". Justice Abichandani, President of the CESTAT is an expert scholar in such technical laws, about which he has written extensively. This judgement offers a glimpse of his expertise and erudite command over the subject....

AC's magnanimity in imposing only Rs 100 as penalty u/s 76 by holding that there is no reference to the number of days of delay is improper : Tribunal
MUMBAI, JAN 03, 2007 : THE Assistant Commissioner who adjudicated a Service Tax case in August 2004 against the company by confirming the demand of Rs.27,568/- and interest of Rs 10,495/- felt that section 76 of the Finance Act, 1994 had a small defect inasmuch as he observed that the section mandated a minimum penalty of Rs.100/- only, even though there was a delay of 134 days. This was because the section did not make a reference to the number of days of delay as far as minimum penalty was concerned but it was only the upper penalty level of Rs.200/- that required the penalty to be computed on the number of days of delay. He accordingly imposed the minimum penalty of Rs 100/- only.

Purchasing from manufacturer and selling same to customers by advertising and deploying trained labour is not subject to service tax as C & F Agent : Tribunal
MUMBAI, DEC 28, 2006 : THIS act of the Revenue can be best summarized as - barking at the wrong tree ! [Pun intended]....

Service Tax on construction - overseas Holding company owns less than 99% shares in Indian subsidiary - not eligible for Advance Ruling
NEW DELHI, DEC 20, 2006: APPLICANT seeks advance ruling under Sec 96C of the Finance Act, 1994. It claims to be a wholly owned subsidiary of a foreign company located in Malaysia. The Holding Company holds 97.31% of paid up equity in the applicant company. The Holding Company got a contract of construction work in Delhi and the same contract was sub-contracted to the applicant. The applicant also states that the construction work is in progress....

'Cargo' means carriage of luggage in ship, vessel or aircraft - transporting coal from wagons to thermal power station by conveyor belt is not cargo handling service - not liable to service tax : High Court
JODHPUR, DEC 18, 2006 : THE
petitioner was awarded a contract of unloading of coal through W.T. System, stacking/reclaiming of coal to S/R System and feeding of coal to boiler bunkers through conveyor system by order dated 29th March, 2004. The petitioner has been carrying the said contract for the Rajasthan Rajya Vidyut Utpadan Nigam from 29th March, 2004. They were asked to get registered under Service Tax as "cargo handling agency" which is under challenge before the High Court in writ petition....

Under-valuation and service tax demands raised and confirmed simultaneously on drawing, design and devt charges - Tribunal seeks pre-deposit for undervaluation but prima facie sees no case in service tax
MUMBAI, DEC 13, 2006 : THE
other day, an officer from the department jocularly remarked - In cases of valuation disputes, we give two demand notices, one alleging under-valuation and the other asking the assessee to pay Service tax on the additional consideration received - just to be on the safer side . Even if one of them survives, it is still an achievement....

Consulting Engineer - when contract itself is 'divisible', no surgery to isolate Siamese twins of services and goods required - service tax leviable : Tribunal
NEW DELHI, DEC 05, 2006 : AFTER the tribunal order in the M/s Daelim Industrial case (2003-TIOL-110-CESTAT-DEL) where it was held that the work contract cannot be vivisected to pick up those services which fall in the categories of taxable services, a growing trend can be seen among the Commissioner (A) to outrightly set aside the Revenue's demand....

Finolex Industries directed by Tribunal to pay Rs one crore for getting a stay in Service Tax case
MUMBAI, DEC 04, 2006: THE company constructed their own jetty which is used by them for import of raw materials required in the manufacture of their final products.   They also   constructed two LPG storage tanks and associated equipments for handling LPG gas near their port. Under an agreement dated 03.11.1996, they gave licences for two storage tanks and associated equipments initially to M/s BSL and then to M/s BPCL on licence basis....

Rent -a-cab scheme operator services - evidence produced before tribunal - matter remanded : Cestat
BANGALORE, DEC 01, 2006 : THE
appellants were carrying out the services under the category of "Rent a Cab Scheme Operator Services" for the period 1.4.2000 to 31.3.2005. They obtained registration after 14.09.2003. They failed to file the returns within the prescribed period prior to 14.9.2003. A Show Cause Notice was issued for the period 1.4.2000 to 31.3.2005 raising demand of Service Tax of Rs.20,97,085/- on the ground that they suppressed the facts and have not paid the tax during the period. The order was passed ex parte....

Service Tax paid by advertising agencies for advertising aerated waters is available as credit to manufacturers of concentrates : Tribunal
By TIOL News Service

MUMBAI, NOV 29, 2006 : IN
a landmark decision that is not going to go down well with the Revenue, the Tribunal has held that the service tax paid by the Advertising agencies for advertising of Aerated water is eligible for credit & utilization while clearing concentrates to bottlers of Aerated waters....

Delivery to courier or airline, would not by itself amount to rendering services in USA; Foreign service provider - Indian service receiver liable to pay tax if agreement stipulates so : Tribunal
AHMEDABAD, NOV 27, 2006 : THIS
is a stay application. The issue is liability on the Indian service receiver for the period prior to 16.8.2002....

Security service provided by Punjab Ex-Servicemen Corpn taxable - value is gross consideration : Tribunal
NEW DELHI, NOV 24, 2006 : THE
appeal is filed by Punjab Ex-Serviceman Corpn challenging the order by the authorities below holding that the appellant corporation floated by Punjab Government for the welfare of Ex-Serviceman is not a charitable organization but service provider of security services which are taxable under the law. None represented the appellant inspite of notice.

Service Tax - prima facie, hire purchase and hire purchase financing are not synonymous - waiver of predeposit of Rs 26 Cr granted by tribunal
MUMBAI, NOV 21, 2006 : AUTO
finance companies are already on a high. With sales of two and four wheelers heading towards the northerly direction, these companies will never fall short of any clientele....

Breach Candy Swimming Bath Trust is not a Mandap Keeper and hence not required to pay Service Tax : Tribunal
MUMBAI, NOV 20, 2006 : THE
Breach Candy Swimming Bath Trust located near the Breach Candy Hospital, Bhulabhai Desai Road, Mumbai has an indoor swimming pool of saltwater and also a huge outdoor poo....

Consulting engineer - Service Tax liability is on prime consultant not the sub-consultant : Cestat
BANGALORE, NOV 17, 2006 : RECENTLY
we carried a judgement of the AP High Court striking down VAT both on the contractor and sub contractor and we had asked, "Will the same logic apply to Service Tax?"....

Service Tax on tour operators - levy not unconstitutional : Karnataka High Court
BANGALORE, NOV 16, 2006 : THE
issue involved in the writ petitions is levy of 'Service Tax' on tour operators, whose services are brought under the 'Service Tax' with effect from 1.9.1997 vide Notification No. 37/97 (dated 22.8.97)....

Service tax on computer training institutes - insertion of clause (iii) in Explanation to Notification is not clarificatory - prima facie not chargeable to service tax for period 11.09.2004 to 16.03.2005; stay granted
KOLKATA, NOV 07, 2006 : THE appellant is running a Computer Training Centre at Ranchi, under a Licence Agreement with NIIT Ltd. At the said Centre, the appellant imparts training to the trainees in relation to computer software....

Music can be sometimes taxing, a tax can never be musical and consignment stockist is a clearing and forwarding agent: Cestat
NEW DELHI, NOV 03, 2006 : THE
appellant is a consignment stockist on behalf of Gas Authority of India Ltd. The Service Tax Department issued a Show Cause Notice demanding Service Tax on the commission received by them relying on following clauses in the agreement....

Airport Authority of India alleges harassment and threat of arrest by Service Tax - Tax paid under protest does not mean it is paid due to threat : Delhi HC
NEW DELHI, NOV 01, 2006 : THE
mighty AAI is a large organisation maintaining 126 airports. But even this mighty organisation is not above the persuasive powers of the Central Excise department. They were made to pay Rs 20 Crores voluntarily by the department, but later they alleged that the payment was because of coercion....

In Service Tax matters, tribunal can also hear cases involving tax amounts below Rs 50,000 : Cestat
KOLKATA, OCT 27, 2006 : SOME
facets remain un-explored unless they are raked up in appeal proceedings. Just when we felt that Service Tax issues are all about finding a proper category for the service provider and as to who should be really paying Service Tax, we have a good issue contested before the Tribunal by the Departmental Representative....

Making boards and painting are not advertising service : Cestat
NEW DELHI, OCT 17, 2006 : THE
work entrusted to the appellant by the Uttaranchal Tourism was....

Sale of SIM card liable to service tax : Delhi Cestat
NEW DELHI, OCT 11, 2006 : THE South Zonal bench of the Tribunal had in Idea Mobile Communication Ltd. Vs. CCE 2006-TIOL-857-CESTAT-BANG held that when sales tax is paid on SIM cards, no Service Tax is leviable.....

Service Tax - Religious and Charitable Institution not a 'Commercial Concern' even if it collects nominal fee for providing employment : Cestat
BANGALORE, OCT 04, 2006 : THE
issue before the CESTAT was whether a Religious and charitable Institution can be considered as commercial concern just because it collects some fee for the services provided.....

Supervision charges collected as levy cannot be described as consideration for services provided for storage and warehousing; Asst Distt Excise Officer of MP State Warehouse wins Service Tax case
NEW DELHI, SEPT 29, 2006 : I
have taken more good from alcohol than alcohol has taken from me - Winston Churchill, quoted by Quentin Reynolds....

Service Tax - demand under different heads - no break-up amount for each service mentioned in SCN - quantum of tax levied on individual services is uncertain - recovery stayed
CHENNAI, SEPT 26, 2006 : THE
appellants as a O&M Contractor were required to run an electric power generating plant (250 MW) of the owner....

Service Tax - constitutional validity of Sec 66A upheld - Only services received in India are taxable : Delhi HC
NEW DELHI, SEPT 22, 2006 : THOUGH
the High Court did not strike down Section 66A, it observed that service received abroad is not taxable....

Service Tax - advertising - Google's re-search finds no result in Advance Ruling
NEW DELHI, SEPT 21, 2006 : GOOGLE
has sought modification of the order of the Authority for Advance Ruling in the issue of Service Tax on advertisement charges - 2005-TIOL-15-ARA-ST on the ground that that there is prime facie factual error....

Bottling of liquor is liable to service tax : High Court
BHOPAL, SEPT 21, 2006 : IN
these writ petitions the question involved is whether service tax on packaging i.e. bottling and labelling of liquor, can be levied from the distillers and whether they can pass on this liability to the contractors obtaining the supplies from them....

Revenue's insatiable appetite for litigation - review initiated for non-existent order-in-original in service tax case!
NEW DELHI, SEPT 20, 2006 : IN
an interesting case a demand notice was issued to the assessee for short payment of service tax in the year 2000 and for the quarter ending March 2002....

Yeh Dil Maange More, but Cestat rejects Revenue appeal for imposing penalty on Service Tax assessee
MUMBAI, SEPT 19, 2006 : THE
Department was not happy with the waiver of the penalty amounts under Section 76 & 78 and reduction in penalty amount u/s 77 of the Finance Act 1994 by the lower appellate authority. It filed an appeal....

If testing of blood is not taxable under Service Tax, can drawing of blood be taxed? No, says the Tribunal
NEW DELHI, SEPT 18, 2006 : THE appellants run "SAMPLE COLLECTION CENTRES" for specialised laboratories like Dr Lal Path Labs Pvt. Ltd., New Delhi, M/s Speciality Ranbaxy Ltd....

Refund of service tax - Tribunal cannot consider a plea raised for the first time : Cestat
BANGALORE, SEPT 15, 2006 : THIS
case has all the circus that only the Revenue can perform.
Standard Chartered Bank filed a refund claim of Rs. 1,43,47,238/- as they had paid Service Tax even for the amounts which were not received from their customers....

Flashing an adveretisement on Cable TV would not call for Service Tax as Advertising Agency : Tribunal
MUMBAI, SEPT 14, 2006 : THE
worst part while watching the latest Bollywood hit on cable TV are those creeping advertisements/crawlies or those which pop before & after every song and dance sequence or a Gandhigiri dialogue...

Cestat third member cannot go beyond the point of reference : Bombay HC
MUMBAI, SEPT 14, 2006 : WHEN
there is a difference of opinion between two members of the CESTAT, normally the question is refereed to the third member....

Service Tax paid on Mobile phones is eligible for Cenvat Credit : CESTAT
MUMBAI, SEPT 13, 2006 : FORTUNATELY, the Tribunal decision for which everyone was waiting is out....

Telecom FDI festering with service tax evasion and changing security concerns
NEW DELHI, SEPT 11, 2006 : FOREIGN
Direct Investment (FDI) in telecom services is not only turning out to be a major challenge to national security but also a possible case of tax avoidance....

Supply of technical knowhow - under what head is it chargeable to service tax? Advance Ruling Authority rejects application
NEW DELHI, SEPT 11, 2006 : PFIZER LTD, a joint venture with an Indian company sought an advance ruling on "which clause in section 65 to chapter V of the Finance Act 1994....

Service tax - every firm that employs an engineer is not an engineering firm : Cestat
NEW DELHI, SEPT 06, 2006 : M/s Shakumbari Sugar & Allied Ind. Ltd. is a Central Excise assessee engaged in the manufacture of Sugar. In the year 1999-2000, it received an amount of Rs 75 lakhs as consideration for technical service rendered to M/s. Krishna Taxport Industries Ltd....

Foreign Service Provider –- Service Tax payable by Indian service receiver –- High Court
KOCHI, SEPT 01, 2006 : THE
Kerala State Electricity Board entered into a contract with M/s. SNC Lavalin Inc., Montreal, Canada to implement a project work of Kuttiyady Extension Scheme and also the Pallivasal, Sangulam and Panniyar upgradation projects....

Service tax on security agency - No abatement is allowable for cost of labour and contribution towards ESI and EPF : Cestat
NEW DELHI, AUG 29, 2006 : TRUE to their name this security agency promptly took registration as a Service Tax provider the moment these services were notified in October 1998, made periodic payments of tax and filed returns....

Service tax on GTA in 1997 - no tax payable, but if paid, no refund : Cestat
NEW DELHI, AUG 13, 2006 : THE
1997 GTA Service Tax fiasco refuses to die down. All the retrospective amendments could not save Revenue's ca(u)se....

Foreign Consulting Engineer having office in India - Revenue cannot hold on to the amount of service tax paid by receiver of service by mistake
NEW DELHI, AUG 9, 2006 : IN
the present case, the Indian company sought the services of a Consulting Engineer situated in Australia for their manufacturing plant. Being the service recipient, they paid Service Tax on the said Consulting charges paid by them....

Service tax evasion under BAS : DGCEI books Bangalore-based liquor firm for Rs 11 Cr evasion
NEW DELHI, AUG 5, 2006 : TAX
evasion is an old evil. Thanks to liberalisation and simplification of procedures a significant number has been taking undue advantages of the relaxed preventive regime....

Merely screen printing of advertising hoardings does not make a person an Advertising Agency : Cestat
BANGALORE, AUG 2, 2006 : WHAT's
in a name - one may say. Lot of things if you are called Zodiac Advertisers - that too if you come under the departmental scanner....

ZEE & Star celebrate joint victory in service tax case - Cestat sets aside Rs 22 Cr demand
MUMBAI, JULY 31, 2006 : IF at all any one has to be blamed, it should surely be the drafters of the amendments effected to section 65 of the Finance Act, 1994. If not them, then the authorities who want Service Tax....

Valuation of photographic service : Cestat rules cost of photographic paper and other materials not excluded from gross amount taxable to service tax
NEW DELHI, JULY 25, 2006 : SERVICE tax was imposed on photography services in 2001. The gross amount charged by a photography studio or agency for services provided or to be provided to a customer, by a photography studio or agency....

AC demands, Commissioner (Appeals) drops, Addl Commissioner demands, Commissioner (Appeals) confirms - Cestat remands
NEW DELHI, JULY 17, 2006 : THE legal maze through which an assessee has to go through is amazing. The sequence of events in this drama unfolded like this....

No service tax if sales tax is collected : Cestat
BANGALORE, JULY 12, 2006 : THE issue here is Service Tax on SIM cards for cellular phones....

Jules Romains, Mahler's 9th Symphony & Trishanku aid Larger Bench to hold that singular operation of clearing or forwarding also falls within ambit of C & F Agent and is liable to service tax
NEW DELHI, JULY 10, 2006 : WHERE there's music, there can be no evil - Cervantes, Don Quixote....

Service tax on C & F Agent : Larger Bench overrules Tribunal's decision in Prabhat Zarda case
NEW DELHI, JULY 3, 2006 : LARSEN & TOUBRO, Voltas and others have a very good reason to be happy. They would not be required to get themselves registered as C & F Agents under Service Tax for the reason that the Larger Bench has ruled in their favour....

Payment received from third party for exclusive right to catering in function hall does not attract service tax : Bombay HC
MUMBAI, JUNE 21, 2006 : THERE
is a function hall which is given on rent for social and business functions - clearly attracts Service Tax as mandap keeper. Now there's a catch. If you need this function hall, you have to order catering and decoration from a particular person...

What's the right word? 'Partly allowed' or 'partially allowed'?
CHENNAI, JUNE 22, 2006 : THERE is an old joke on how a comma could cost a life! A judge after hearing the arguments got convinced that there was no case for punishing the offender, but in a hurry to go home early, signed the judgment “Hang, not excuse him” instead of “Hang not, excuse him”....

Levy of service tax on placement by IIMs & IITs - CAG supports Revenue's stand
NEW DELHI, MAY 30, 2006 : COLLECTING
tax is certainly not a pleasant job. A taxman is detested by all and sundry for doing his job. This was recently seen when the taxmen in Ahmedabad issued a notice to the high-profile IIM-A for the levy of service tax....

Service tax on GTO - Notification 43/97 available to units having provisional SSI registration : Cestat
MUMBAI, JUNE 14, 2006 : DURING
the era of the small scale notification 175/86 CE, one of the important conditions for a manufacturer to avail exemption from Central Excise duty was to have an SSI registration from the Directorate of Industries....

CAG says Revenue failed to recover Rs 47 Cr service tax from DD on broadcasting services
NEW DELHI, JUNE 7, 2006 : AT
a time when the general atmosphere is about withdrawal of tax exemptions, the CAG in its latest report has indicated the Revenue's keenness to grant exemption to certain services....

Service Tax on GTA - tax paid for 1997-98 to be refunded
NEW DELHI, MAY 29, 2006 : FIRST
they imposed a tax on GTA to be payable by the recipient. This was challenged. The Supreme Court struck it down, but the executive was not going to take it lying down....

No penalty if service tax is paid before issue of SCN - Machino Montell applicable - but interest is recoverable : Cestat
NEW DELHI, MAY 19, 2006 : THE
relevant facts are that the appellants were receiving services of GTO for the period from 16.11.97 to 2.6.98. Validity of these services was challenged in the Supreme Court and a retrospective amendment was carried out to the Finance Act....

Service involving designing, erection, commissioning & training - a wide spectrum of tasks demanding certain professional engineering skills - tax payable under Consulting Engineer : Cestat
CHENNAI, MAY 25, 2006 : THE assessee admittedly performed the following activities....

Service Tax - Registration cannot be considered as granted with retrospective effect for availing Credit
MUMBAI, MAY 24, 2006 : THIS case pertains to the time the Service Tax Rules, 2002 were in vogue. Rule 3(1) of the said Credit Rules before its substitution on 14.05.2003 stipulated that an output service provider shall be allowed to take credit of the service tax....

'Spicing' up rule 6(3) of Service Tax Rules : Service tax paid to DoT cannot be adjusted towards own service tax liability
NEW DELHI, MAY 15, 2006 : IN
the present case, the Cellular operator was paying Service tax to the Central government in respect of the Cellular phone services provided to their customers....

No penalty during the amnesty scheme : Cestat
NEW DELHI, MAY 9, 2006 : THE
respondent in this Revenue appeal is a security services agency. The department found him an offender and demanded tax and penalties...

The tale of missing Cenvat Credit in service tax
CONTRARY
to the Finance Ministry announcement, changes made in the law disallows credit for the service tax paid on various input services....

Cable operator being a small firm - imposition of penalty under service tax not justifiable - Commissioner (A) order is considerate and humane : Cestat
NEW DELHI, MAY 5, 2006 : HERE
is a physically challenged person running a cable TV service with a turnover of Rs. 40,000/- to Rs. 70,000/- per year, which as we all know is barely sufficient to sustain him....

Surat Municipal Corporation is in the news again; but this time as a mandap keeper under service tax provisions
NEW DELHI, MAY 4, 2006 : THE
city of Surat is located in southern Gujarat, on the banks of the river Tapi. It is India's twelfth most-populous city. Manufacture of gold and silver brocade being a cottage industry, the tax compliance is observed to be below average....

'Reviewing' service tax orders passed by Commissioner - to become a nightmarish experience!
MUMBAI, MAY 2, 2006: TIOL had carried a report last week in the 'Breaking News' Section and the last word in that piece was that the departmental officers are going to vouch for Section 35E provisions to be made applicable to Service Tax matters. [2006-TIOL-461-CESTAT-DEL]....

Service tax - Sec 73 does not contemplate issuance of SCN when assessee pays tax with interest; Hence SCN is beyond provision of the Act
NEW DELHI, APR 28, 2006: FACTS of this case are that the appellants are providing services of transportation and loading of coal from rail yard to their client....

MoF notifies 15 new services from May 1; Service tax rate for air travel agents goes up; 70% abatement allowed on rail transport containers
NEW DELHI, APR 25, 2006: WITH
the Finance Minister scheduled to take active participation in the local elections in Tamil Nadu, today was expected to be a highly hectic day for the topbrass in North Block....

No vivisection even if the value of services separately mentioned : Cestat
MUMBAI, APR 25, 2006: IN
the now famous Daelim Industrial Co., case in which the Tribunal had held that a composite contract cannot be vivisected to levy Service Tax on various components....

CA's certificate is a reliable document to decide issue of unjust enrichment : Cestat
BANGALORE, APR 23, 2006: THE
Bills of Entry were assessed with higher value and the higher quantum of duty was demanded. The Commissioner (Appeals) upheld the assessee’s contention....

Service anywhere would attract liability under outdoor caterers for service tax : Kerala HC
NEW DELHI, APR 21, 2006 :
THE petitioners challenge a letter of the Superintendent of Central Excise holding them to be providers of catering service to Air India and liable to get registered and pay Service Tax....

Service tax - when amnesty is allowed to even those who were not registered, the same should be given to those who were registered : Cestat
NEW DELHI, APR 20, 2006 : THE
appellants are engaged in the business of renting Cabs since June, 2000 and got themselves registered as Rent a Cab Operator from 06.12.2000....

In service tax matters, you have the power to review but you cannot direct your subordinate to file an appeal : Cestat
NEW DELHI, APR 18, 2006:
FORGIVE them O Lord for they don't know what they have done - these are the words which holy men utter....

Chartered Accountant does not pay service tax within the time allowed by HC - Interest leviable : Cestat
NEW DELHI, APR 16, 2006: THE
appellant is a practising chartered accountant and were liable to pay the Service Tax. The Chartered Accountants Association of Rajasthan unsuccessfully challenged the imposition of the Service Tax in the High Court of Rajasthan, but the High Court granted the Association time to pay up Service Tax dues....

NEW DELHI, Feb 23, 2006: SERVICE TAX ON 'CONSULTING ENGINEER' : NOTIFICATION 18/2002 CANNOT BE READ RETROSPECTIVELY

BANGALORE, Feb 17, 2006: SERVICE TAX REFUND : FRIVOLOUS REVIEWS CONTINUE; IS THERE NO END TO THEM?

KOCHI, Feb 15, 2006: PRIVATE COLLEGES NOT AWARDING DEGREES ARE NOT LIABLE TO SERVICE TAX; TAX ON EDUCATION IS REGRESSIVE SAYS HC

CHENNAI, Feb 8, 2006 : MADRAS HIGH COURT STAYS TAX ON SERVICES RECEIVED ABROAD

NEW DELHI, Feb 6, 2006 : WHAT IS THE DIFFERENCE BETWEEN THE ADVICE AND CONSULTATION OF A SAINT SITTING UNDER A BANYAN TREE AND THE ADVICE OF A QUALIFIED PROFESSIONAL CONSULTANT ENGINEER? CESTAT UPHOLDS SERVICE TAX DEMAND OF RS 3 CR ON NOKIA

NEW DELHI, Jan 31, 2006 : KERALA HC SAYS PARALLEL COLLEGES COACHING PVT STUDENTS FOR PUBLIC EXAMS NOT LIABLE TO PAY SERVICE TAX

NEW DELHI, Jan 10, 2006 : SERVICE TAX ON CLEARING & FORWARDING SERVICE : PRABHAT ZARDA CASE REFERRED TO LARGER BENCH

NEW DELHI, Jan 3, 2006 : ADB STIPULATES SERVICE TAX FOR MUNICIPAL CORPORATIONS IN KERALA

MUMBAI, Jan 2, 2006 : SERVICE TAX CASE : CASH-RICH CRICKET BOARD ASKED TO DEPOSIT AN AFFORDABLE RS 6 CRORE AS PRE-DEPOSIT

NEW DELHI, Dec 27, 2005 : SUPPLYING FREE SAMPLES OF MANUFACTURER TO VARIOUS DOCTORS FOR ADVERTISING MEDICAMENTS COVERED UNDER BAS AND NOT C & F AGENT

NEW DELHI, Dec 23, 2005 : ADVANCE RULING : PROVIDING/SELLING SPACE FOR ADVERTISEMENT ON 'GOOGLE WEBSITE' IS LIABLE TO SERVICE TAX

NEW DELHI, Dec 20, 2005 : DEPUTATION OF EXECUTIVES TO SISTER CONCERNS AND RECOVERY OF AMOUNTS REPRESENTING SALARY AND OVERHEADS NOT LIABLE TO SERVICE TAX AS MANAGEMENT CONSULTANCY

NEW DELHI, Dec 12, 2005 : DGCEI BOOKS EICHER MOTORS FOR NOT COLLECTING SERVICE TAX ON INTELLECTUAL PROPERTY SERVICE

NEW DELHI, Dec 5, 2005 : AGREEMENT TO DEDUCT WITHHOLDING TAX AND DISPUTE SETTLEMENT ACCORDING TO INDIAN LAWS DO NOT PLACE BURDEN TO PAY SERVICE TAX : TRIBUNAL

MUMBAI, Dec 1, 2005 : COMMISSION PAID TO DEALERS FOR SERVICES RENDERED IS TAXABLE AS 'CLEARING & FORWARDING AGENTS'

CHENNAI, Nov 30, 2005: IS DONATION RECEIVED BY A CHARITABLE ORGANISATION CONSIDERATION FOR LEVYING SERVICE TAX?

NEW DELHI, Nov 25, 2005: REVENUE SECRETARY SAYS NORTH BLOCK NOT WORKING ON INDEPENDENT SERVICE TAX ACT; EET REPORT TO BE SUBMITTED SOON

HYDERABAD, Nov 19, 2005: SERVICE TAX CREDIT RULES : A DENSE BLACK HOLE IN COSMIC SPACE!

NEW DELHI, Nov 8, 2005: SERVICE TAX - PHOTOGRAPHY SERVICE - GROSS RECEIPTS TAXABLE - SC

MUMBAI, Oct 13, 2005: TRIBUNAL GRANTS IBPS A STAY FROM RECOVERY OF SERVICE TAX

MUMBAI, Oct 10, 2005: MANAGEMENT CONSULTANT MCKINSEY & CO FAILS TO MANAGE ITS TAX LIABILITY; ORDERED TO COUGH UP RS 2 CRORE AGAINST SERVICE TAX DUES FOR GETTING STAY

CHENNAI, Sept 9, 2005: A PLEA OF FINANCIAL HARDSHIPS CANNOT, BY ITSELF, BE A SATISFACTORY CAUSE OF DELAYED PAYMENT OF SERVICE TAX

NEW DELHI, Sept 8, 2005: CBEC FOCUS ON SERVICE TAX : AUDIT MAY PLAY CRITICAL ROLE TO COUNTERVAIL EVASION

NEW DELHI, Sept 6, 2005: SUPPLY OF FURNITURE TO A PANDAL ATTRACTS SERVICE TAX : ADVANCE RULINGS AUTHORITY

NEW DELHI, Sept 2, 2005: CO-ORDINATION ACTIVITIES ARE COVERED UNDER CLEARING & FORWARDING SERVICE : CESTAT RULES BY MAJORITY ORDER

NEW DELHI, Aug 31, 2005: PROJECT MANAGEMENT CONTRACT IS NOT LIABLE TO SERVICE TAX UNDER CONSULTING ENGINEER

NEW DELHI , AUG 26, 2005: CASES BOOKED BY DELHI SERVICE TAX PROVES HUGE POTENTIAL OF REVENUE FROM SERVICE TAX

NEW DELHI , AUG 12, 2005: UPA GOVT ALL GEARED UP TO GIVE A MAJOR FACELIFT TO SSI DEFINITION; SERVICE PROVIDERS PUT AT EQUAL FOOTING

NEW DELHI , AUG 05, 2005: CESTAT SAYS NO PENALTY IS IMPOSABLE IN CASES WHERE SERVICE TAX IS PAID BEFORE ISSUE OF SCN

NEW DELHI , AUG 02, 2005: DGST PRESCRIBES DISINCENTIVE FOR CENTRALISED REGISTRATION IN SERVICE TAX

NEW DELHI , JUNE 28, 2005: SERVICE PROVIDERS FALLING PREY TO 'TDS SYNDROME'; DGCEI NETS AAI AND JET AIRWAYS FOR SERVICE TAX EVASION

NEW DELHI , JUNE 22, 2005: CESTAT RULES KNOWHOW FEE AND ROYALTY PAYMENTS TO MNC PARENT ARE NOT LIABLE TO SERVICE TAX

NEW DELHI , JUNE 15, 2005: EXCHANGE OF INTANGIBLE PROPERTY THROUGH TECHNICAL TIE-UP IS NOT LIABLE TO SERVICE TAX

NEW DELHI , JULY 11, 2005: DGCEI FOCUSES ON SERVICE TAX EVASION; BOOKS SITA TRAVELS, THOMAS COOK & RECOVERS GOOD SUM FROM HYATT REGENCY; ALSO RAIDS BIRA GROUP OF LUDHIANA

NEW DELHI , JUNE 23, 2005: SUPPLYING MANPOWER CANNOT BE EQUATED WITH PROVIDING THE SERVICE OF 'CARGO HANDLING' : CESTAT

AGRA, JUNE 23, 2005: SERVICE OF NOTICE U/S 148 ON CA IS INVALID IN THE EYES OF LAW; ALL SUBSEQUENT PROCEEDINGS ARE ILLEGAL AND VOID

MUMBAI, JUNE 15, 2005: ANGADIA PAISE LAYA, ANGADIA PAISE LAYA RE! BUT NO SERVICE TAX IS LEVIABLE: CESTAT

NEW DELHI, JUNE 09, 2005: FM APPROVES CBEC FRESH RESTRUCTURING PLANS - NEW SERVICE TAX COMMISSIONERATES AND STRENGTHENING OF DGCEI AND DG (AUDIT)

NEW DELHI, JUNE 08, 2005: WANT TO DYE YOUR HAIR? PAY SERVICE TAX

NEW DELHI, JUNE 08, 2005: FICCI,CII & COAI SUBJECTED TO SERVICE TAX; EVEN RESIDENT WELFARE ASSOCIATIONS TO BEAR THE BRUNT

NEW DELHI, JUNE 07, 2005: MOF NOTIFIES NINE NEW SERVICES AND EXPANDED LIST OF EXISTING SERVICES FROM JUNE 16

NEW DELHI, JUNE 07, 2005: BREATHER FOR CELLULAR OPERATORS; SERVICE TAX RULES AMENDED TO ALLOW CENTRALISED REGISTRATION HOLDERS TO ADJUST EXCESS SERVICE TAX PAID

NEW DELHI, JUNE 06, 2005: TIOL LAUNCHES COMPREHENSIVE ELECTRONIC LIBRARY ON EXIM AND SERVICE TAX AND ALL OTHER INDIRECT TAXES

NEW DELHI, MAY 31, 2005: CABINET PERMITS MOC TO MAKE REVISED OFFER TO WTO ON OPENING UP SERVICES SECTOR

NEW DELHI, MAY 25, 2005: SERVICE TAX ON REPAIRS AND MAINTENANCE : A LEGISLATIVE HARA KIRI!

MUMBAI, MAY 20, 2005: HC GRANTS STAY ON LEVY OF SERVICE TAX; CESTAT SAYS A SHORT-LIVED 'STAY' ATTRACTS INTEREST

NEW DELHI, MAY 13, 2005: MS SHERAWAT, HER OPULENT JEWELLERY AND SEVICE TAX, A TERRIFIC TRIO!

CHENNAI, MAY 2, 2005: IN CASE OF DELAY IN PAYMENT OF SERVICE TAX, INTEREST IS TO BE PAID FOR THE ACTUAL PERIOD OF DELAY AND NOT ENTIRE MONTH

MUMBAI, APRIL 28, 2005: WHAT'S THE GOOD WORD, RENT OR HIRE, FOR SERVICE TAX?

NEW DELHI, MARCH 28, 2005: MODUS OPERANDI FOR SERVICE TAX EVASION - STRAIGHT FROM TRU!!

NEW DELHI, MARCH 23, 2005: SC UPHOLDS ANOTHER RETROSPECTIVE LEGISLATION; SERVICE TAX ON GTA IS VALID

BANGALORE, MARCH 11, 2005: NON-PAYMENT OF SERVICE TAX BY DUE DATE DUE TO STRIKE : CESTAT REDUCES PENALTY

NEW DELHI, MARCH 03, 2005: MOF NOTIFIES SERVICE TAX SOPS FOR EXPORTS OF SERVICES; CREDIT RULES AMENDED

NEW DELHI, MARCH 03, 2005: SERVICE TAX ON CONSTRUCTION SERVICE NOT TO HIKE THE PRICES OF FLATS ALREADY CONSTRUCTED AND SOLD BY BUILDERS

MUMBAI, MARCH 01, 2005:  SERVICE TAX ADDS TO DEMOLITION COST!

NEW DELHI, FEB 28, 2005:  IMPACT OF SERVICE TAX AMENDMENT : CANTEEN FOOD TO BE COSTLIER AFTER MAY

NEW DELHI, FEB 28, 2005:  SERVICE TAX ON BUSINESS AXULIARY SERVICES : 'BASK-ING' IN GLORY!

NEW DELHI, FEB 24, 2005:  ECONOMIC SURVEY HINTS AT REMEDYING INVERTED TAX STRUCTURE AND WIDENING OF SERVICE TAX NET

NEW DELHI, FEB 24, 2005:  SERVICE TAX ON JOB WORK

CHENNAI, FEB 20, 2005:  RELATIONSHIP BETWEEN THE SERVICE PROVIDER AND THE SERVICE RECEIVER IS A CRUCIAL ELEMENT FOR PURPOSE OF SERVICE TAX LEVY

NEW DELHI, FEB 12, 2005:  SERVICE TAX - AISHWARYA RAI, SHAH RUKH KHAN AND AMITABH BACHHAN HAVE CLEAN SLATES WHILE PSUS LIKE POWER GRID CORPORATION AND CENTRAL SILK BOARD ARE ON THE DOCK

NEW DELHI, FEB 09, 2005:  BUDGET NEEDS TO REDEFINE BUSINESS AUXILIARY SERVICES

NEW DELHI, FEB 08, 2005:  HC RULES CLUBS ARE NOT LIABLE TO SERVICE TAX AS 'MANDAP KEEPER'

NEW DELHI, FEB 06, 2005:  THE MARCH SYNDROME IS HERE; SERVICE TAX FOR MARCH TO BE PAID BY MARCH 31

NEW DELHI, JAN 14, 2005:  SERVICE TAX COMMITTEE CALLS FOR CREATION OF JS-LEVEL POSTS IN BOARD FOR INTERNATIONAL CUSTOMS AND EXCISE

NEW DELHI, JAN 13, 2005:  10,000 VACANCIES IN CBEC ALONE AND FM IS NOT AWARE OF IT? SERVICE TAX COMMITTEE SUGGESTS INTERIM MECHANISM TO FILL THEM UP!

NEW DELHI, JAN 12, 2005:  SERVICE TAX COMMITTEE CALLS FOR MASSIVE RESTRUCTURING OF CUSTOMS OUTFITS;

NEW DELHI, JAN 11, 2005:  SERVICE TAX ON GOODS TRANSPORT AGENCY : WILL THE GOVT SUCCEED IN SECOND INNINGS?

NEW DELHI, JAN 11, 2005:  SERVICE TAX COMMITTEE RECOMMENDS CREATION OF THREE MORE EXCLUSIVE COMMISSIONERATES IN DELHI, MUMBAI & KOLKATA

NEW DELHI, JAN 11, 2005:  IN DEFENCE OF THE GOVERNMENT - CONFUSION OVER NOTIFICATION NO 36/2004 SERVICE TAX DATED 31.12.2004

NEW DELHI, DEC 29, 2004:  DONATION RECEIVED IN RELATION TO SERVICE IS LIABLE TO SERVICE TAX; ANY SERVICE WHICH HAS A DIRECT OR INDIRECT NEXUS WITH USE OF MANDAP IS TAXABLE

NEW DELHI, DEC 28, 2004:  SERVICE TAX PENALTY U/S 76 & 77 IS NOT MANDATORY : CESTAT

NEW DELHI, DEC 22, 2004:  SERVICE TAX ON GOODS TRANSPORT : RETROSPECTIVE AMENDMENT DOES NOT HELP REVENUE!

NEW DELHI, DEC 21, 2004:  THE TRU HAS COME OUT WITH ELABORATE CLARIFICATION ON SERVICE TAX ON GOODS TRANSPORT AGENCY TO BE EFFECTIVE FROM 1ST JANUARY, 2005

NEW DELHI, DEC 15, 2004:  SERVICES SECTOR BOOM COMES UNDER SCANNER; IMF STUDY SUGGESTS ROOM FOR HUGE GROWTH IN TRADABLE SERVICES

NEW DELHI, DEC 14, 2004:  SERVICE TAX APPLICATION BY BRITISHER PROPOSING TO SET UP CALL CENTRES REJECTED

NEW DELHI, DEC 13, 2004:  GOODS TRANSPORT, SERVICE TAX NOTIFICATIONS ISSUED, BHARADWAJ COMMITTEE RECOMMENDATIONS ACCEPTED

NEW DELHI, DEC 03, 2004:  PC GOES BY BHARDWAJ PANEL RECOMMENDATIONS FOR SERVICE TAX ON TRUCKERS;

CHENNAI, NOV 29, 2004: DISPLAY OF ADVT BY LEASE OF SITE FOR RENTAL CHARGES DOES NOT ATTRACT SERVICE TAX

NEW DELHI, NOV 25, 2004: SERVICE TAX ON TRANSPORTERS : BHARDWAJ COMMITTEE DOES A SHODDY JOB...

MUMBAI, NOV 25, 2004: RS 3.74 CR DEMAND AGAINST BAJAJ AUTO SET ASIDE....

NEW DELHI, NOV 22, 2004: MAJOR SETBACK FOR SERVICE TAX DEFAULTERS.

NEW DELHI, NOV 19, 2004: CBEC PANEL CALLS FOR 3 MORE EXCLUSIVE SERVICE TAX COMMISSIONERATES..

NEW DELHI, OCT 28, 2004: INPUT SERVICE DISTRIBUTORS NOT REQUIRED TO BE REGISTERED

NEW DELHI, OCT 5, 2004: CO-OPERATIVE BANKS, ARE YOU NOT SUPPOSED TO PAY SERVICE TAX?

NEW DELHI, SEPT 20, 2004: REIMBURSEMENT FOR MANAGEMENT COST NOT LIABLE TO SERVICE TAX

NEW DELHI, SEPT 14, 2004: SIX NEW COMMISSIONERATE

NEW DELHI, SEPT 13, 2004: IATA AGENTS & FLIGHT CATERERS SILENTLY BROUGHT UNDER SERVICE TAX NET 

NEW DELHI, SEPT 13, 2004: EXERCISE OF POLLING 'OPINION' BECOMES MORE TAXING!