The CESTAT held that, input tax paid for construction service used in relation to modernization, renovation of the existing factory is available as Cenvat credit
Adding preservatives to ayurvedic medicine will change the classification of medicine
the Adjudicating Authority and held that, addition of non-active ingredients such as preservatives, would not change the classification of the product, if the active ingredients are ayurvedic in such case, the medicament is classifiable as ayurvedic medicament.
Fitting of electrical appliances is not covered under works contract
The CESTAT, Ahmedabad has set aside the order passed the Adjudicating Authority on the ground that assessee provides works contract services by holding that, the services of general wiring, fitting thereof, are not covered under works contract services.
Pre- fabricated shelters, tower, tower material are eligible for CENVAT Credit
Cenvat credit can be availed on pre-fabricated shelters, towers and tower material which form an essential ingredient in the provision of telecommunication service
Marketing and support services provided in India on direction of the foreign Company is export of service
The CESTAT, Bangalore in M/s. Sun Microsystems (I) Pvt. Ltd. v. Commissioner of Central Excise & Service Tax, LTU set aside the demand order passed by the Adjudicating Authority and held that, marketing, sales promotion, and technical pre-sales support service provided by the assessee to Indian customer on the direction of the foreign company tantamount to ‘export of service’.
Service provided by SEZ developer to unit within the SEZ are exempt from service tax
The CESTAT, Mumbai in M/s. Hiranandani Builders v. Commissioner of Service Tax-VII, Mumbai set aside the demand order and held that, the Revenue Department does not have authority of law to collect service tax on services provided by SEZ developer to units in SEZ within SEZ area.
Failure to declare amount in return alone does not imply wilful suppression
The CESTAT, Chandigarh in M/s. M R Beltings v. Commissioner of Central Excise Rohtak set aside the demand order on the ground that the entire demand is barred by limitation since, the department was not able to bring anything on record to show that the assessee has suppressed the material fact in order to evade the payment of duty.
Service Tax is not leviable on School buses as they are not categorised under the definition of ‘Cab’
The CESTAT, Ahmedabad in Akshar Travels v. C.C.E. & S.T.-Daman ruled that, use of motor vehicle for transportation of school children is clearly different from rent-a-cab service, hence no service tax is to be leviable on transportation of children to and from school.
Gaming laptops are “Automatic data Processing Machines” and not “Video Game Console”
The CESTAT, Chennai in M/s. Asus India Private Limited v. Commissioner of Customs held that, gaming laptops are classifiable under Customs Tariff Heading 8471 as “Automatic data processing machines” even though it is being marketed as a gaming computer that is capable of running high end graphic intensive games.
VAT not applicable on inter-state sale of goods
The Hon’ble Patna High Court in PCM Cement Concrete Pvt. Ltd. v. The Union of India held that VAT was wrongly collected by the Indian Railways by misunderstanding the transaction as intra-state sale. The Indian Railways is liable to refund the illegal tax collected and can further claim the refund from the Bihar Value Added Tax Department.