The Hon’ble Supreme Court in Principal Commissioner Central Excise Delhi I v. SOTC Travels Services Private Limited dismissed the Appeal filed by the Revenue Department by relying on the judgement wherein it was held that the Performance linked bonus (“PLB”) and Computer reservation service (“CRS”) fees received by airline agents are not subject to service tax under the category of ‘Business Auxiliary Services’ (“BAS”).
Venture of Indian Railways is a deemed railway company- not exigible to service tax
The CESTAT, Mumbai in Konkan Railway Corporation Limited v. Commissioner of Service Tax set aside the order passed by the Commissioner by observing that assessee is ‘a deemed to be a railway company’ under the provision of Indian Railways Act, 1890 and since Indian railways was exempt from payment of service tax no service tax liable on the assessee.
Refund of service tax paid when the services were consumed outside India
The CESTAT, Ahmedabad in M/s. Aegis Limited v. Commissioner of Central Excise & ST, Surat-I held that services which were consumed outside India, the out of scope of service tax and any tax paid by assessee on such services should be refunded.
Service Tax not levied on reimbursable expenses incurred by the Assessee
The CESTAT, Ahmedabad in United India Shipping Services v. Commissioner of GST and Central Excise set aside the order confirming demand on expenses like deconsolidation charges, transportation charges, DO charges which are first collected by the assessee from their clients and thereafter paid to the service provider.
Services of extending corporate guarantee without any consideration is not considered as a service
The CESTAT, New Delhi in Sowar Pvt. Ltd. v. Commissioner of Service Tax [Final Order No. 50607 Of 2023 dated March 29, 2023] held that assessee has not received any consideration for providing corporate guarantee and hence no service tax is payable by the assessee. Facts: M/s. Sowar Pvt. Ltd. (“the Appellant”) is providing services […]
Rent received by Individuals owning Property jointly cannot be clubbed to impose service tax
The CESTAT, Chennai in M. Vijayabharathi June 14, 2023 set aside the order levying service tax on total rent received by co-owners jointly and held that the income received as rent by each co-owner is much below the threshold limit to subject the levy of service tax.
Refund of service tax allowed to real estate buyers on cancellation of the contract
The CESTAT, Mumbai in the case of M/s. Guardian Landmarks LLP v. Commissioner of Central Excise & Service Tax, Pune II [Service Tax Appeal No. 88084 of 2019 dated June 06, 2023] allowed refund claim of service tax to real estate developer on behalf of the unregistered customer, who has paid the service tax along […]
No Service Tax leviable on Cost of Spares and accessories used for free services during warranty period
The CESTAT, Chennai in M/s. T.A.F.E Access Ltd. v. Commissioner of GST & Central Excise [Service Tax Appeal No. 526 of 2012 dated May 26, 2023] set aside the order demanding Service Tax on cost of the spares/materials used for providing the free services provided during the warranty period. Held that, assessee is not liable to […]
No Service Tax on sale of coaching material
The CESTAT Kolkata in the matter of M/s. Kanhaiya Singh Vision Classes Private Limited v. Commissioner of CGST & CX, Patna-I Commissionerate [Service Tax Appeal No.75767 of 2021 dated May 18, 2023] has held that the amount collected by selling study material is not a taxable service under the Finance Act, 1994, hence, no service […]
No service tax leviable on user development fees collected by Airport authority, being a statutory levy
The Hon’ble Supreme Court in the case of Central GST Delhi – III v. Delhi International Airport Ltd (Civil Appeal No. 8996 of 2019 dated May 19, 2023) held that neither is there any compulsion to levy development fee nor is the collection conditional upon its deposit in the government treasury. Facts: Delhi International Airport […]