2025-VIL-1825-CESTAT-KOL-ST
  1. Home
  2. 2025-VIL-1825-CESTAT-KOL-ST

SERVICE TAX CESTAT Cases

Service Tax – Filing of appeal – Maintainability – Appellant company has been engaged in execution of turnkey contracts for setting up of power plants for various Electricity Distribution Authorities – After investigation, Revenue issued show cause notice to Appellant by proposing demand of Service Tax on value of sale of equipment – Principal Commissioner confirmed demand as proposed in show cause notice – Whether appeal filed by Appellant company is maintainable or not – HELD – Revenue has taken preliminary objection on ground that appeals should have been filed by 45 noticees individually, since demand has been confirmed against 46 noticees, but one single appeal has been filed by one entity, i.e. headquarters of Appellant company. Appeal has been filed by Corporate Headquarters of Appellant, wherein accounts of all 45 units are maintained. Accounts are consolidated and a single balance sheet is prepared at end of Financial Year. Appellant company is operating under one single PAN Number. Irrespective of fact that demand is confirmed against various units of same company, final liability to pay confirmed demand, if any, would lie with headquarters. Preliminary objection raised by Respondent is rejected. Appeal filed by headquarters of Appellant company is maintainable – Appeals allowed - Sale of equipment – Tax liability – Whether value of equipments sold by Appellant can be included in value of works contract for levy of Service Tax – HELD – Turnkey contracts are divisible contracts for conceptualizing the project, supply of equipment, machinery, infrastructure, services of different nature and a number of other activities which may or may not involve tax liabilities. Contract for supply of equipments executed by Appellant with customers is totally distinct and not related to service contract. Contract for sale of equipment is a separate contract, wherein CST/VAT has been paid on sale of goods. No service tax is payable on value of equipments/materials, on which CST/VAT is applicable or paid/payable. Value of equipments sold under a distinct supply contract cannot be included in value of Works Contract for levy of Service Tax. Appellant has rightly not included value of sale of equipment to customers for purpose of payment of service tax. Demand confirmed in impugned order is set aside.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA 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?