CESTAT Rulings

One-to-one co-relation of input services with export not required, allows refund to 100% EOU

CESTAT allows refund under Rule 5 of CENVAT Credit Rules, 2004 (CCR) to 100% EOU engaged in providing Banking and Other Financial Services (BoFS); Accepts assessee’s plea that, rejection of refu...View More

Valuation-Rules inapplicable for assessing goods sold from depot where discount known at factory

CESTAT dismisses Revenue’s challenge to finalization of assessment on actual transaction value of goods sold at 'depot' which were cleared on ‘stock transfer’ basis from factory by r...View More

Allows exclusion of reimbursements subject to production of 'documentary evidence', remands matter

CESTAT allows Revenue's appeal by remanding matter to lower authority, directs computation of actual service tax liability of the assessee after giving due allowances to amounts claimed as reimburseme...View More

Quashes demand under Rule 6(3) on 40% non-taxable component in 'catering service'

CESTAT allows assessee's appeal, quashes demand on 40% non-taxable component of ‘outdoor catering’ service determined in terms of Rule 2C of Service Tax (Determination of Value) Rules, 200...View More

Sub-contractor liable to service tax despite discharge of tax by main contractor

CESTAT Larger Bench (LB) holds a sub-contractor liable to Service Tax even if the main contractor has discharged liability on the work assigned to sub-contractor, overrules decisions taking a contrary...View More

'Marketing Division' transferred as 'slump-sale' along with 'trade-marks', not ‘Franchise’ service

CESTAT quashes demand under ‘Franchise’ service as defined u/s 65 (105)(zze) of Finance Act, 1994 in respect of sale of marketing division of nutraceutical business for consideration of Rs...View More

No bona-fide error in mis-declaring parts/accessories to avail EPCG benefit, upholds confiscation

CESTAT upholds confiscation of goods u/s 111(m) of the Customs Act, 1962 (Act) on account of mis-declaration of goods as part and accessories of engine for availing benefit of exemption under EPCG sch...View More

Demand towards tax recovered by service-recipient from service-provider of reverse-charge payment, untenable

CESTAT holds that amount collected by assessee towards service tax from insurance agent is not required to be deposited u/s 73A(2) of Finance Act, 1994 (Act) where service tax has initially been paid ...View More

Sets aside Rs. 220 crores demand for alleged development rights transfer to DLF Ltd

CESTAT sets aside Rs. 220 crores (approx) demand stating that assessee has not transferred any land development right in favour of DLF Ltd. while purchasing land on their behalf from various Land Owni...View More

Service charges liable to ST, 'Money changing facility' by hotel not 'Business Auxiliary Service'

CESTAT upholds service tax liability on 10% service charge/tips charged in hotel bills, holds same as includible in gross amount charged from service recipient towards providing ‘Mandap Keeper S...View More