Confederation of Indian Industry Vs Commissioner of Central Excise and Service Tax (CESTAT Chandigarh)
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal examined an appeal against an order passed by the Commissioner of Central Excise and Service Tax, Chandigarh-I, which had confirmed Service Tax demands for the period from 1 October 2010 to 31 March 2012. The confirmed demands related to two heads: Service Tax on reimbursement of expenses under Convention Services amounting to ₹39,034 and Service Tax on income from the Modular Employment Scheme amounting to ₹1,25,818. These amounts were confirmed under the category of Business Auxiliary Service.
The appellant is an organisation registered with the Service Tax department and primarily engaged in serving industry. During audit, objections were raised leading to issuance of a show cause notice proposing Service Tax demands on four counts: reimbursement of expenses under Convention Service, income from Modular Employment Scheme, contributions or grants received from Government under Business Exhibition, and sponsorship amounts received. After adjudication, the Commissioner dropped the demands on contributions under Business Exhibition and sponsorship income but confirmed the demands on reimbursement of Convention expenses and income from the Modular Employment Scheme, giving rise to the present appeal.
