2025-VIL-1689-CESTAT-CHE-ST
  1. Home
  2. 2025-VIL-1689-CESTAT-CHE-ST

SERVICE TAX CESTAT Cases

Service Tax - Customs House Agent Services, Pure Agent - Supply of crane, material handling equipment, Demand under Business Support Services - Appellant collected certain charges along with the CHA service charges, but excluded these charges while computing the assessable value for service tax. It was also alleged that the Appellant had collected charges for providing crane and forklift services which should be classified as 'Business Support Services' - Whether the various expenses incurred by the Appellant on behalf of their clients can be excluded from the taxable value as 'Pure Agent' services under Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006 - HELD - The Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006, which required inclusion of all expenditure incurred by the service provider in the course of providing taxable service in the assessable value, has been struck down by the Hon'ble Delhi High Court and the Supreme Court as being ultra vires Sections 66 and 67 of the Finance Act, 1994. Consequently, reliance on Rule 5(2) for 'Pure Agent' services cannot come to the rescue of the Department as the parent provision, i.e. Rule 5(1), has been held to be invalid. Therefore, the demands relating to inclusion of the charges collected by the Appellant along with the CHA service in the assessable value are set aside – On the issue of charges collected charges for providing crane and forklift services, the services provided by the Appellant involving supply of cranes, forklifts etc. are classifiable under 'Supply of Tangible Goods' service and not under 'Business Support Services'. Since the demand pertained to the period prior to the introduction of 'Supply of Tangible Goods' service, the same is not taxable. Accordingly, the demand relating to 'Business Support Services' is also set aside – The impugned order is set aside and the appeal is allowed
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?