CESTAT Delhi held that overseas liaison offices functioning merely as communication channels cannot be treated as separate service providers to their Indian head office. The Tribunal set aside service tax demands on reimbursements and emphasized that one cannot provide services to oneself.
Tribunal ruled that interest liability extends to the full duty adjudged under Section 28, regardless of whether payment is made through cash or EPCG licence adjustment. The decision clarifies the scope of compensatory interest provisions.
The ruling clarifies that consignment notes carry legal significance under the Finance Act and Service Tax Rules for determining GTA status. Without such documents, a transporter cannot be subjected to service tax as a Goods Transport Agency.
Where an EPCG licence holder becomes incapable of fulfilling export obligations due to unavoidable circumstances such as SARFAESI auction of imported assets, levy of interest and penalty cannot be sustained, particularly when customs duty has already been recovered through encashment of bank guarantees. Tribunal upheld only the customs duty demand while setting aside confiscation, interest and penalty.
CESTAT Mumbai held that Rule 16(2) of the Central Excise Rules does not mandate that remanufactured goods be supplied back to the original customer. The Tribunal allowed the credit and ordered refund of the demand.
The Tribunal observed that payment of licence fees for exclusive use of demarcated spaces amounted to renting of immovable property. Consequently, the transaction attracted forward charge provisions rather than reverse charge liability.
CESTAT held NHAI’s transfer of toll collection rights to contractors was a taxable service, not a sovereign function, and upheld service tax demand.
ESTAT held demurrage linked to transportation contracts is not consideration for services and cannot be taxed under Port Services or declared services.
CESTAT Chennai held that reimbursable expenses recovered on an actual basis could not be included in taxable value for periods prior to 14 May 2015. The ruling relied on the Supreme Court’s decision on the scope of Section 67 of the Finance Act, 1994.
CESTAT Chennai held that credits relating to renovation, sales promotion, testing services, vehicle-related expenses, and similar services could not be denied when they had a real nexus with taxable output services. The ruling clarifies that functional connection with business activities remains relevant even after amendments to the definition of input services.
