Service Tax Is Leviable On Renting Of Immovable Property: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax is leviable on renting of immovable property. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has opined that unless the levy of service tax on renting of immovable property service is held to be ultra vires by any constitutional court, it will continue to be a valid levy. The assessee/appellant was registered with the service tax...

Installation & Commissioning Of Goods After Sale Is Not “Works Contracts”; Service Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that installation and commissioning of goods after sale is not a “works contracts”, hence service tax is not leviable. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “merely because the goods were installed and commissioned after sale, the contract would not become a works contract services.” In this case, the show cause was issued to the...

Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “in absence of any reply or any supporting documents, Legal fees expense incurred by the assessee are expenses towards Legal services. Accordingly, Service Tax on Legal Fee expense incurred by the assessee is upheld.” ...

Service Tax Liability Can't Be Levied On Freight And Cartage Expenses Under GTA Services: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax liability cannot be levied on freight and cartage expenses under GTA (Good Transport Agency) services. “The said amount/expenses/charges were not paid by the assessee directly to the transporter for transportation of any goods. Thus, the said activity cannot be covered under GTA Services, hence, no service tax liability can be levied on the aforesaid amount/expenses/charges...

Service Tax Not Payable On Commission Received From Foreign Universities For Promoting & Publicizing Business In India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not payable on commission received from foreign universities for promoting and publicizing business in India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “the assessee is held not liable to pay service tax with reference to foreign Consultancy Income i.e. the income received from foreign universities for...

Mark-Up Earned By Purchasing & Selling Cargo Space To Importers/Exporters On Principal-To-Principal Basis Is Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mark-up earned by purchasing and selling cargo space to importers/exporters on principal-to-principal basis in freight business is not liable to service tax as it amounts to trading activity and not provision of service as intermediary. The Bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “when the assessee is acting on a principal to ...

Discounts Received From Manufacturer & Passed On To Customers During Car Sale Doesn't Constitute Service, Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that discounts/incentives received from manufacturer and passed on to customers during car sales constitute sale of goods, not service, hence not liable to service tax. The Bench of Binu Tamta (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “sale/target incentive/incentive on sale of vehicles and incentive on sale of spare parts received by assessee, could not be...

Assessee Entitled To CENVAT Credit For Service Tax Paid On GTA Services Used To Transport Goods To Buyer's Premises: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the assessee is entitled to CENVAT credit of the service tax paid on the goods transport agency (GTA) services received by the assessee to transport the goods from its factory to the buyer's premises sold on FOR (free on road) destination basis. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that ““place of removal” shifts to the buyer's ...

Transfer Of License Is “Deemed Sale,” Consideration Received Cannot Be Subjected To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transfer of a license constitutes a “deemed sale” under article 366(29A)(d) of the Constitution and, therefore, any consideration received from it cannot be subjected to service tax. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “…..The consideration received by the assessee on the execution of the License Agreement cannot,...

Once Service Fee Is Refunded By Assessee, Transaction Between Parties No Longer Qualifies As Service & No Service Tax Is Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that once the consideration (service fee) is refunded by the Assessee to the service recipient, the transaction between the two parties no longer qualified as a 'service' and no service tax would be leviable thereupon. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “…the waiver of service fee must be understood as the...

Only Service Recipient, Not Service Provider, Can Claim Credit For Service Tax Paid Under Reverse Charge Mechanism: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that even if service tax is paid under reverse charge mechanism by service recipient, it is the service recipient who can take credit of tax so paid and not service provider. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “……so long as the service tax is paid on a taxable service and such taxable service is an input service, the service ...

No Service Tax Can Be Levied On Rental Agreements In Name Of Individual Partners For Jointly Owned Property: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that rental agreements in the name of an individual partner regarding property jointly held by them are not liable to service tax. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………post 01.07.2012, the firm was not functional, and the rental agreements are in the name of the individual partner, with regard to the property held by...