Transfer Of License Is “Deemed Sale,” Consideration Received Cannot Be Subjected To Service Tax: CESTAT
4 months, 1 week ago

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the transfer of a license constitutes a “deemed sale” under article 366 of the Constitution and, therefore, any consideration received from it cannot be subjected to service tax. This License Agreement was renewed, and a new one was executed with Sab Miller India Ltd., which the assessee treated as a “deemed sale” under Article 366 of the Constitution and accordingly paid VAT. The assessee submitted that the License Agreements by which the assessee endorsed the brewery license issued in its name to Skol/Sab Miller, is a deemed sale under article 366 of the Constitution and, therefore, service tax could not have been demanded on the amount received by the assessee. There is, therefore, no manner of doubt that a “deemed sale” under article 366 of the Constitution had taken place when the assessee granted the right to use the License to Skol/Sab Miller.

Constitution Tax Sale Transfer Service Right Agreement Tribunal Received Stat License Assessee Transferred Service Tax Consideration Deemed License Agreement Subjected Deemed Sale Skol  transferred  license  right  consideration  assessee  tax  agreement  transfer  deemed  received  sale  service  cestat  subjected

History of this topic

No Penalty Leviable If Assessee Fails To Discharge Tax Liability Under Bonafide Belief That No Tax Needed To Be Paid: CESTAT
5 days, 18 hours ago

No Penalty Leviable If Assessee Fails To Discharge Tax Liability Under Bonafide Belief That No Tax Needed To Be Paid: CESTAT

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that if an assessee fails to discharge his tax liability under the bonafide belief that tax did not need to be paid, no penalty is leviable. The Bench of Dr. Rachna Gupta and Ms. Hemambika R. Priya has observed that, “even if payment is made through …

Tax Weekly Round-Up: March 10 - March 16, 2025
Trending News
1 week, 4 days ago

Tax Weekly Round-Up: March 10 - March 16, 2025

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HIGH COURTS Andhra Pradesh HC Notice Under Rule 142 Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High Court Case Title: Sri Durga Granites v. The Deputy Assistant Commissioner and Others Case Number: W.P.Nos.3480 & 6504 of 2020 The Andhra Pradesh High Court stated that a notice under Rule 142 of CGST Rules must be issued …

Service Tax Is Leviable On Renting Of Immovable Property: CESTAT
2 weeks ago

Service Tax Is Leviable On Renting Of Immovable Property: CESTAT

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that service tax is leviable on renting of immovable property. Subba Rao 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. During …

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

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that installation and commissioning of goods after sale is not a “works contracts”, hence service tax is not leviable. Subba Rao 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, …

Transaction Value Is Not The Only Basis For Assessment Of Duty: CESTAT
1 month, 1 week ago

Transaction Value Is Not The Only Basis For Assessment Of Duty: CESTAT

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the transaction value is not the only basis for assessment of the duty. When rejecting the transaction value, the customs officer does not modify the transaction value but only rejects it as the assessable value for determination of the duty.” In this case, the assessee …

Tax Weekly Round-Up [23rd December - 29th December 2024]
2 months, 4 weeks ago

Tax Weekly Round-Up [23rd December - 29th December 2024]

Live Law  

HIGH COURTS Bombay HC ITO Acted On Complete Change Of Opinion On Same Material With Intent To Review Assessment Order Passed By Him: Bombay HC Quashes Reopening Case Title: Imperial Consultants and Securities vs. Deputy CIT Case no. Amendment In Finance Act Can't Retrospectively Affect Vested Right Of Taxpayer To Adjudicate Settlement Application U/S 245: Calcutta HC Case Title: Pradeep …

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

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal 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 Tribunal after referring to previous judgments stated that when it was categorically held that there was no liability to Service …

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

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal 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 Tribunal after referring to previous judgments stated that when it was categorically held that there was no liability to Service …

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

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the assessee is entitled to CENVAT credit of the service tax paid on the goods transport agency services received by the assessee to transport the goods from its factory to the buyer's premises sold on FOR destination basis. Subba Rao has observed that ““place of …

Commission Shared By Head Office With Branch Office Of Same Entity Is Not Taxable: CESTAT
1 year, 1 month ago

Commission Shared By Head Office With Branch Office Of Same Entity Is Not Taxable: CESTAT

Live Law  

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that commission shared by the head office with a branch office of the same entity is not taxable.The bench of Binu Tamta and Hemambika R. Priya has observed that in the absence of any provider-receiver of service relationship, the commission amount shared by the. The Delhi Bench …

Service Tax Payable On Renting/Leasing Shops, Premises, Buildings, Etc. For Any Commercial Purpose Except Agriculture: CESTAT
1 year, 4 months ago

Service Tax Payable On Renting/Leasing Shops, Premises, Buildings, Etc. For Any Commercial Purpose Except Agriculture: CESTAT

Live Law  

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax is payable on renting or leasing shops, premises, buildings, etc. for any commercial purpose except agriculture.The bench of Dr. Rachna Gupta and P.V. rented or leased out for any other commercial purpose other than with reference to agricultural produce, the same shall not be …

CENVAT Credit Availed On ‘Banking And Financial Services’ Used In Providing Renting Of Immovable Property Service Is Admissible: CESTAT
1 year, 5 months ago

CENVAT Credit Availed On ‘Banking And Financial Services’ Used In Providing Renting Of Immovable Property Service Is Admissible: CESTAT

Live Law  

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that CENVAT credit availed on ‘banking and financial services’ used in providing renting of immovable property is admissible.The bench of D. M. Misra has relied on the decision of the Karnataka High Court in the case of Oberon Edifices & Estates Pvt. The Banglore Bench of Customs, …

Service Tax Exemption On Renting Of Immovable Property Service For Transmission Or Distribution Of Electricity By TANGEDCO: CESTAT
1 year, 6 months ago

Service Tax Exemption On Renting Of Immovable Property Service For Transmission Or Distribution Of Electricity By TANGEDCO: CESTAT

Live Law  

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax is not payable on the renting of immovable property services for the transmission or distribution of electricity by Tamil Nadu Generation and Distribution Corporation Limited.The bench of P. Dinesha and M. Ajit Kumar has observed that. The Chennai Bench of Customs, Excise, and Service …

CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply
1 year, 7 months ago

CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply

Live Law  

The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal has upheld the service tax demand against the service tax provider based on ONGC’s reply.The bench of Ashok Jindal and K. Anpazhakan, while dealing with the issue of whether the appellant has recovered service tax from ONGC or not, noted that the only evidence available. The Kolkata Bench Of …

Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT
1 year, 8 months ago

Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that excavation and raising of ore are classifiable under "business auxiliary service" and not under "mining service".The bench of Justice Dilip Gupta and Hemambika R. Priya has observed that where there is excavation or raising of ore, the same would not be. The Delhi Bench of …

No Service Tax Leviable On Construction Of Residential Complexes Prior To 01.07.2010: CESTAT
1 year, 11 months ago

No Service Tax Leviable On Construction Of Residential Complexes Prior To 01.07.2010: CESTAT

Live Law  

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that no service tax could be levied on the construction of residential complexes prior to July 1, 2010, even when the service is rendered either as a service simpliciter or as a work contract.The bench of P. Dinesha and Vasa Seshagiri Rao has observed that the. …

Service Tax Under RCM Not Payable By Company If Personal Property Rented Out By The Directors To The Company: CESTAT
1 year, 11 months ago

Service Tax Under RCM Not Payable By Company If Personal Property Rented Out By The Directors To The Company: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that service tax under the Reverse Charge Mechanism is not payable by the company if personal property is rented out by the directors to the company.The bench of Justice Dilip Gupta and P. V. Subba Rao has noted that the Commissioner assumed that. Therefore, the Commissioner …

Payment On One-Time Premium/Aalami Can't Be Charged To Service Tax Under Renting Of Immovable Property: CESTAT
2 years, 4 months ago

Payment On One-Time Premium/Aalami Can't Be Charged To Service Tax Under Renting Of Immovable Property: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the payment of a one-time premium or salami cannot be charged to service tax under the heading "renting of immovable property service. The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the payment of a one-time premium or salami …

No Service Tax Payable On Sale Of Ready-Mix-Concrete: CESTAT
2 years, 4 months ago

No Service Tax Payable On Sale Of Ready-Mix-Concrete: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the entire exercise is the sale of ready-mixed concrete and there is no service element involved so as to create service tax liability against the assessee.The two-member bench of Ramesh Nair and Raju has observed that the department has very. As a result, the department …

Service Tax Not Leviable On Business Exhibition Service Performed Outside India: CESTAT
2 years, 5 months ago

Service Tax Not Leviable On Business Exhibition Service Performed Outside India: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax is not leviable on business exhibition services performed outside India.The two-member bench of Ramesh Nair and Raju observed that as per Rule 3 of Sub Rule of the Taxation of Services. The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal …

No Service Tax On Reimbursement Of Expenses From Customers On Account Of Water, Electricity And Diesel Expenses Incurred: CESTAT
2 years, 8 months ago

No Service Tax On Reimbursement Of Expenses From Customers On Account Of Water, Electricity And Diesel Expenses Incurred: CESTAT

Live Law  

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the service tax is not applicable on reimbursement of expenses from its customers on account of water, electricity, and diesel expenses incurred for the provision of services. Secondly, service tax has been demanded on the amount received towards the reimbursement of expenditure in respect of …

Service Tax Cannot Be Levied On Reimbursement Of Expenses Incurred By The Service Provider: Reiterates CESTAT Delhi
2 years, 9 months ago

Service Tax Cannot Be Levied On Reimbursement Of Expenses Incurred By The Service Provider: Reiterates CESTAT Delhi

Live Law  

The Delhi Bench of CESTAT has reiterated that service tax cannot be levied on reimbursement of expenses incurred by the service provider. Subba Rao, held that since Rule 5 of the Service Tax Rules, 2006 has been held to be ultra vires by the Supreme Court in the case of Union of India versus Intercontinental Consultants and Technocrats Pvt. The …

In huge relief for flat buyers, HC rules against service tax levy on under-construction buildings
8 years, 9 months ago

In huge relief for flat buyers, HC rules against service tax levy on under-construction buildings

India TV News  

In huge relief for flat buyers, HC rules against service tax levy on under-construction buildings New Delhi: The Delhi High Court has said that there will be no service tax on contracts between buyers and builders for purchase of under-construction flats in a housing complex. The court also clarified that New Delhi: The Delhi High Court has said that there …

No Service Tax for buying Flats but preferential location charges Taxable; Delhi HC [ Read Judgment]
8 years, 9 months ago

No Service Tax for buying Flats but preferential location charges Taxable; Delhi HC [ Read Judgment]

Live Law  

Neither the Act nor the Rules framed therein provide for a machinery provision for excluding all components other than service components for ascertaining the measure of service tax, the Bench said.Delhi High Court in Suresh Kumar Bansal vs Union Of India, has held that no service tax under Section 66read with Section 65 of the Finance Act could be charged …

No Service Tax for buying Flats but preferential location charges Taxable; Delhi HC [ Read Judgment]
8 years, 9 months ago

No Service Tax for buying Flats but preferential location charges Taxable; Delhi HC [ Read Judgment]

Live Law  

Neither the Act nor the Rules framed therein provide for a machinery provision for excluding all components other than service components for ascertaining the measure of service tax, the Bench said.Delhi High Court in Suresh Kumar Bansal vs Union Of India, has held that no service tax under Section 66read with Section 65 of the Finance Act could be charged …

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