CESTAT Quashes Service Tax on TASMAC Bar Licenses

Tamilnadu State Marketing Corporation Ltd. Vs Commissioner of GST and Central Excise (CESTAT Chennai) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has set aside demands for service tax on license fees collected by the Tamilnadu State Marketing Corporation (TASMAC) from bar contractors for periods from March 29, 2013, onwards. The Tribunal’s consolidated order, addressing three appeals by TASMAC, affirmed that these activities, after a specific amendment to state rules, constitute a statutory function and thus fall under the negative list of services, exemp...