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

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that once the consideration 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. Consequently, the assessee refunded the entire service fee and service tax to the milk unions. The assessee then filed a refund claim for the service tax paid on services provided to the milk unions for this period. Further, the assessee also discharged service tax on the service fee received from the milk unions. Since, preceding the full waiver of service fee, there is no dispute that the assessee was rendering a 'service' to the milk unions and that post waiver the assessee has issued credit notes to all milk union members for the amount of service tax as was collected from them, the appeal the service tax so paid is refundable to the assessee, added the bench.

Tax Service Tribunal Fee Milk Refund Unions Assessee Service Tax No Service Tax Service Fee Leviable Cestat  qualifies  longer  bench  refunded  assessee  waiver  unions  fee  leviable  cestat  order  service  parties  tax  milk  transaction  refund

History of this topic

Tax Weekly Round-Up: March 10 - March 16, 2025
Trending News
2 days, 15 hours ago

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

Live Law  

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 …

Amount Deposited As Service Tax If Refundable, Should Not Be Treated As Pre-Deposit U/S 35F Central Excise Act: CESTAT
4 days, 21 hours ago

Amount Deposited As Service Tax If Refundable, Should Not Be Treated As Pre-Deposit U/S 35F Central Excise Act: CESTAT

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the amount deposited as service tax, if refundable, should not be treated as pre-deposit under Section 35F of Central Excise Act, 1944. Merely because such adjustment is made, the amount paid as service tax or fine or penalty does not become pre-deposit under section 35F” …

Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT
1 week, 5 days ago

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta and Hemambika R. Priya 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, …

Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT
1 week, 5 days ago

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta and Hemambika R. Priya 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, …

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT
2 weeks, 6 days ago

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT

Live Law  

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the reimbursements received by the assessee cannot be considered as 'consideration' towards any taxable service. The department considered the reimbursable expenses as 'consideration' towards rendering of the taxable service of 'supply of manpower' and accordingly demanded service tax from the assessee. The Tribunal held that the …

Service Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High Court
2 months ago

Service Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High Court

Live Law  

The Calcutta High Court has held that construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to the Government, cannot be exigible to service tax. A division bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya relied on two Circulars issued by the Central Board of Indirect Taxes and Customs to observe, …

Service Tax Not Payable On Commission Received From Foreign Universities For Promoting & Publicizing Business In India: CESTAT
2 months, 1 week ago

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal 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 and Hemambika R. Priya has observed that “the assessee is held not liable to pay service tax with reference to foreign Consultancy …

Mark-Up Earned By Purchasing & Selling Cargo Space To Importers/Exporters On Principal-To-Principal Basis Is Not Liable To Service Tax: CESTAT
Trending News
2 months, 3 weeks ago

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

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal 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 and Rajeev Tandon has observed …

Recovery Provisions Of Central Excise Act Are Not Applicable To Service Tax: Chandigarh CESTAT
8 months, 3 weeks ago

Recovery Provisions Of Central Excise Act Are Not Applicable To Service Tax: Chandigarh CESTAT

Live Law  

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that recovery provisions of the Central Excise Act are not applicable to service tax.The bench of S. S. Garg, while upholding the rejection of the refund on account of education cess and Secondary & Higher education cess, held that the refund cannot be appropriated. The Chandigarh Bench …

CESTAT Cases Monthly Round-Up: March 2024
11 months, 2 weeks ago

CESTAT Cases Monthly Round-Up: March 2024

Live Law  

Case Title: M/s GopiChenna Versus Commissioner of Central Tax Medchal - GST The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that the service tax demand was made on the basis of third-party data, i.e., amounts reflected in income tax returns and in Form 26AS, which is not sustainable. Case Title: Kuoni Travel India Pvt Ltd. …

Service Tax From 16.06.2005 to 26.07.2009 Not Leviable On Services Of Repair And Maintenance Of Roads: CESTAT
1 year ago

Service Tax From 16.06.2005 to 26.07.2009 Not Leviable On Services Of Repair And Maintenance Of Roads: CESTAT

Live Law  

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax during the period from 16.06.2005 to 26.07.2009 is not leviable under maintenance and repair service in relation to the repair and maintenance of roads.The bench of D.M. The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax during …

Indirect Tax Cases Weekly Round-Up: 04 To 10 February 2024
1 year, 1 month ago

Indirect Tax Cases Weekly Round-Up: 04 To 10 February 2024

Live Law  

Supreme Court Customs Act | Claimant Entitled To Interest On Delayed Return Of The 'Duty Drawback' : Supreme Court UNION OF INDIA AND ORS. Madras High Court Case Title: M/s.Supreme Paradise Versus Assistant Commissioner Citation: 2024 LiveLaw 61 The Madras High Court has held that a discount linked to the subsidy alone can form part of the “transaction value.” Case …

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 …

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 …

Tax Cases Weekly Round-Up: 28 May to 3 June, 2023
1 year, 9 months ago

Tax Cases Weekly Round-Up: 28 May to 3 June, 2023

Live Law  

Delhi High Court Faceless Assessment Is Not A Fundamental Right: Delhi High Court Dismisses Gandhis, Aam Aadmi Party's PleasCase Title: Sanjay Gandhi Memorial Trust Versus Commissioner Of Income Tax & Ors.Citation: 2023 LiveLaw 446The Delhi High Court, while dismissing the plea of Rahul Gandhi, Priyanka Gandhi, and the Aam Aadmi Party, has held that neither the. Delhi High Court Faceless …

Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT
1 year, 9 months ago

Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that excess service tax paid can be adjusted towards service tax liability for the succeeding month or quarter.The bench of Justice Dilip Gupta and P. Anjani Kumar has observed that the mistake of short or excess payment has occurred due to the newly introduced. The Delhi …

Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT
1 year, 9 months ago

Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise.The bench of Anil Choudhary has observed that in the absence of any transaction-wise and invoice-wise calculation, the show-cause notices are vague and. The Delhi Bench of the …

Refund Cannot Be Denied To Any Person Who Has Borne The Incidence Of Tax: CESTAT
1 year, 10 months ago

Refund Cannot Be Denied To Any Person Who Has Borne The Incidence Of Tax: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that a refund cannot be denied to any person who has borne the incidence of tax.The bench of Justice Dilip Gupta and Hemambika R. Priya has observed that Rajasthan Housing Board has also deducted the service tax payable by them by reverse charge mechanism from. The …

Reimbursable Expenses Are Not Includible In The Taxable Value Of The Service: CESTAT
1 year, 11 months ago

Reimbursable Expenses Are Not Includible In The Taxable Value Of The Service: CESTAT

Live Law  

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that reimbursable expenses are not includible in the taxable value of the service in terms of Rule 5 of the Service Tax Rules, 2006. The department was of the view that the reimbursable expenses are includible in the gross taxable value of the service by invoking …

Once The Flat Buyer Cancels The Booking Builder Not Liable To Pay Service Tax: CESTAT
2 years, 2 months ago

Once The Flat Buyer Cancels The Booking Builder Not Liable To Pay Service Tax: CESTAT

Live Law  

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it is established that no service is provided, then refund of tax for such service becomes admissible.The bench of Ajay Sharma has observed that. The …

Service Tax Refund Admissible On Trenching Pipeline Installed Partly In SEZ And Partly Outside But For Use In Operation Of The SEZ: CESTAT
2 years, 2 months ago

Service Tax Refund Admissible On Trenching Pipeline Installed Partly In SEZ And Partly Outside But For Use In Operation Of The SEZ: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that service tax refunds on trenching pipelines installed partly in SEZ and partly outside but for use in the operation of the SEZ are admissible.The two-member bench of Ramesh Nair and Raju has observed that the construction service received in relation. The Ahmedabad Bench of the …

No Service Tax Payable On Security Deposit Taken From Customers Towards Trading Of Shares: CESTAT
2 years, 3 months ago

No Service Tax Payable On Security Deposit Taken From Customers Towards Trading Of Shares: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax is not payable on security deposits taken from customers towards the trading of shares.The two-member bench of Ramesh Nair and Raju has observed that the amount is refundable and was towards security deposits and was not for the purpose of. The Ahmedabad Bench …

Service Tax Leviable On Policy Administration Charges From 1 May, 2011: CESTAT
2 years, 4 months ago

Service Tax Leviable On Policy Administration Charges From 1 May, 2011: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax is leviable on policy administration charges with effect from 01.05.2011.The two-member bench of Anil Choudhary and P.V. The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that service tax is leviable on policy administration charges with effect from …

Services Of Business Promotion/Support And Marketing Service Do Not Qualify As Intermediary Service: CESTAT
2 years, 4 months ago

Services Of Business Promotion/Support And Marketing Service Do Not Qualify As Intermediary Service: CESTAT

Live Law  

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that the services of business promotion, support, and marketing do not qualify as intermediary services.The bench of S. S. Garg and P. Anjani Kumar has observed that the place of provision of business promotion service shall be the location of the recipient. The Chandigarh Bench of Customs, …

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 …

Registration Of Premises Not A Necessary Prerequisite For Claiming A Refund Under Cenvat Credit Rules, 2004: CESTAT
2 years, 5 months ago

Registration Of Premises Not A Necessary Prerequisite For Claiming A Refund Under Cenvat Credit Rules, 2004: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the registration of premises is a necessary prerequisite for claiming a refund under Rule 5 of the Cenvat Credit Rules, 2004.The bench of Rachna Gupta has observed that service providers are entitled to a refund under rule 5 of the Cenvat Credit Rules, 2004 when …

Assessee Entitled To Avail Cenvat Credit Of Service Tax Already Paid During Transitional Period: Madras High Court
2 years, 6 months ago

Assessee Entitled To Avail Cenvat Credit Of Service Tax Already Paid During Transitional Period: Madras High Court

Live Law  

The Madras High Court, consisting of Justice R. Ramdevan and Justice Mohammed Shaffiq, has held that the assessee is entitled to avail cenvat credit of the service tax already paid but the assessee was unable to claim due to a transitional provision that has come into effect from 01.07.2017. The appellant/department stated that though the assessee is entitled to avail …

No Service Tax On Reimbursement Of Expenses From Customers On Account Of Water, Electricity And Diesel Expenses Incurred: CESTAT
2 years, 7 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 …

Services Provided With Respect To A Government Sports Stadium, Not A Commercial Service; Would Not Attract Service Tax: CESTAT Delhi
2 years, 8 months ago

Services Provided With Respect To A Government Sports Stadium, Not A Commercial Service; Would Not Attract Service Tax: CESTAT Delhi

Live Law  

The CESTAT Delhi has ruled that an activity undertaken in a stadium, which belongs to the Government and which is used for non-commercial activities, would not be covered under the definition of 'Commercial or Industrial Construction' services, as defined in Section 65 of the Finance Act, 1994, and hence, it would not attract service tax. The Bench, consisting of Justice …

Limitation Period Is Not Applicable On Refund Of Service Tax Wrongly Paid: Karnataka High Court
2 years, 8 months ago

Limitation Period Is Not Applicable On Refund Of Service Tax Wrongly Paid: Karnataka High Court

Live Law  

The Karnataka High Court bench of Justice P.S. Dinesh Kumar and Justice Anant Ramanath Hedge has held that the limitation period is not applicable to a refund of service tax wrongly paid. Subsequently, the assessee learnt that it was not liable to pay service tax on the export of services in terms of Chapter-V of the Finance Act, 1994. The …

Service Tax Cannot Be Levied On Reimbursement Of Expenses Incurred By The Service Provider: Reiterates CESTAT Delhi
2 years, 8 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 …

Liquidated Damages Does Not Attract Service Tax: CESTAT Hyderabad
2 years, 10 months ago

Liquidated Damages Does Not Attract Service Tax: CESTAT Hyderabad

Live Law  

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal has ruled that receipt of liquidated damages by the service provider for breach of conditions under an agreement to provide services would not attract Service Tax. The Service Tax Department issued a demand notice to the appellant proposing to recover Service Tax on the ground that the receipt …

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