2025-VIL-1824-CESTAT-CHE-ST
  1. Home
  2. 2025-VIL-1824-CESTAT-CHE-ST

SERVICE TAX CESTAT Cases

Service Tax – Reimbursable electricity charges – Entitlement of deduction – Appellant is engaged in providing various taxable services, but had not paid service tax on same – After investigation, department issued show cause notice to Appellant by proposing demand of service tax under various categories – Adjudicating Authority confirmed demands as proposed in show cause notice – Commissioner (Appeals) upheld order passed by Adjudicating Authority – Whether Appellant is liable to pay Service Tax on electricity charges under category of Management, Maintenance and Repair (MMR) Services when same is claimed to be reimbursable by Appellant – HELD – Appellant on his own accord furnished details of income from maintenance of complexes. Department has added electricity charges and computed tax demand. Appellant had submitted proof that they have paid electricity charges which were subsequently reimbursed by clients. Service Tax is not leviable on electricity charges, as they are reimbursements. Demand on MMR services is payable after deducting value of electricity charges. Matter is remanded to Lower Appellate Authority for limited purpose of computing tax after deducting reimbursed expenses on account of electricity charges and pass a reasoned order after following principles of natural justice – Appeals disposed of - Receipt of commission – Demand of tax – Whether demand confirmed under category of Business Auxiliary Service (BAS) is sustainable – HELD – Appellant have canvassed financial products like Home Loan on behalf of various financial institutions and received Sales Commission from said institutions. Sales commission paid by institutions was the sole and gross consideration for procuring clients. Service tax is chargeable on gross amount received as consideration for providing service. Commission received from Financial Institutions are rightly classified under BAS in impugned order. Demand under BAS is upheld - Overlapping of demand – Whether demand under Security Agency service overlaps with demand made under MMR service – HELD – Security services have been included in composite service of MMR Service. Security Services have been held to be within scope of maintenance and same cannot be taxed again, which will tantamount to double taxation and is not sustainable in law. Demand under Security Agency service is required to be set aside being a repeated demand and being already covered under MMR Services for similar period. Demand under Security Agency service is dropped on ground of overlapping of demand with MMR service.
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?