2025-VIL-536-CESTAT-ALH-ST
  1. Home
  2. 2025-VIL-536-CESTAT-ALH-ST

SERVICE TAX CESTAT Cases

Service Tax – Rendering of Works Contract services to Indian Railways, IIT, Kanpur - Exemption, Valuation – Appellant is engaged in the work of designing, supply, erection, commissioning and installation of electrical equipments and devices including wiring and fitting thereof. They are also engaged in Construction work, repair and maintenance of electrical equipments under annual maintenance contracts and Supply of tangible goods Service - Whether the services provided by the assessee are classifiable under the category of "Works Contract" or "Erection, Commissioning and Installation" - HELD - The services provided by the assessee are classifiable under the category of "Works Contract" as it involves transfer of goods on which VAT has been charged. The Tribunal relied on the Supreme Court decision in the case of Larsen & Toubro Ltd. which held that for the period prior to 01.06.2007, service tax cannot be levied on Works Contract services as there was no machinery provision for assessment of such services. Further, the definition of "Works Contract" itself excludes contracts executed for Railways. Therefore, the demand of service tax on the works contracts executed for Railways is not sustainable - Appeal filed by the appellant is allowed and the appeal filed by the revenue is dismissed - Whether the services provided to IIT Kanpur are exempt from service tax – HELD - As per the Supreme Court decision in the case of Shapoorji Pallonji & Company Pvt. Ltd., IIT Kanpur is a "governmental authority" and the services provided to it are exempt from service tax. The services provided to IIT Kanpur are exempt from service tax - Demand in respect of services provided to Madhyanchal Vidyut Vitran Nigam Ltd – Appellant claims they are liable to pay only 50% of the service tax due in terms of Notification No 30/2012-ST dated 20.06.2012 - HELD – The liability to pay service under the scheme of partial reverse charge mechanism has been well defined on both the service provider and service recipient. The liabilities are independent of each other, and each one is required to discharge his liability independently. Service receiver cannot shift the liability upon the service provider or vice versa, in excess of any amount specified in this regard. Thus, in respect of the services specified under the said scheme as per Notification No 30/2012-ST, the liability to pay service tax on the appellant in case of work contract services provided by them to the Madhyanchal Vidyut Vitran Nigam will have to be limited 50% of the service tax payable as claimed by the appellant - The demand in respect of this needs to be worked out and adjusted against the amount already paid. For this limited purpose the matter needs to be remanded back to the Original Authority.
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GSTAT Rules & Industry Preparedness
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?