Delhi HC Directs CESTAT to Decide Service Tax on Prepaid Value-Added Services

Tata Teleservices Limited Vs Commissioner CGST Delhi East & Anr. (Delhi High Court) Delhi High Court has referred Tata Teleservices Limited’s petition to the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) for adjudication on whether charging service tax on Value-Added Services (VAS) purchased using prepaid balances constitutes double taxation. The dispute arose after the Commissioner CGST, Delhi East, passed an order demanding ₹31 crore in service tax and imposing an equal penalty. Tata Teleservices argued that service tax is already paid when a customer purchases a ...