GST ArticlePre-GSTSupreme Court

No Service Tax on revenue sharing agreement between exhibitor & distributor for exhibiting film

The Hon’ble Supreme Court in Commissioner of Central Excise and Service Tax Ludhiana has disposed the appeal filed by Revenue challenging earlier order passed in favour of the Respondent by the CESTAT, which had set aside the demand for service tax w.r.t revenue sharing agreement between Exhibitor and Distributor pertaining to showcasing of films/ movies.

GST ArticlePre-GST

Service Tax payable under reverse charge when reimbursable expense incurred by distributor on providing service on behalf of taxable person

The CESTAT, Chandigarh in the case of M/s. Maruti Suzuki India Ltd. partly allowed the appeal filed by setting aside the penalty and confirming the demand of tax, thereby holding that, Service Tax is payable under reverse charge when reimbursable expense incurred by distributor on providing service on behalf of the taxable person for business purpose under Business Auxiliary Services.

GST ArticlePre-GSTSupreme Court

Transportation of goods along with ancillary service of handling goods not be taxed as Cargo Handling Service

The Hon’ble Supreme Court in the case of C.C.E. & S.T. Surat v. Arkay Logistics Ltd. dismissed the Civil Appeal filed by the Revenue Department thereby holding that, primary service of transportation of goods along with ancillary service of handling of goods and related activities would not be taxed as Cargo Handling Service.