2026-VIL-250-CESTAT-CHD-ST
  1. Home
  2. 2026-VIL-250-CESTAT-CHD-ST

SERVICE TAX CESTAT Cases

Service Tax - Taxability of adda-fees collected by the appellant from bus operators for using the bus terminal - Under the agreement, the appellant was allowed to collect adda-fees from the bus operators using the terminal. Department issued service tax demands on the appellant claiming that the adda-fees collected are taxable under the "Business Support Services" category - Whether the adda-fees collected by the appellant from the bus operators are taxable under the "business support services" category - HELD - The services provided by the appellant are to the Punjab Infrastructure Development Board (‘PIDB/Authority’) and not to the bus operators, as there is no privity of contract between the appellant and the bus operators. The agreement between the appellant and PIDB clearly shows that the appellant was reimbursed the costs of the project by permitting it to collect the adda-fees, which is in lieu of the consideration payable by PIDB for the construction and development of the project. The determination of the adda-fees was solely at the discretion of the PIDB, and the appellant had no role in it – Appellant do not come under the ‘business support services’ because the BSS cover those services which are outsourced by the service recipient, and it is highly fallacious to hold that bus operators outsourced the construction of bus-terminal on build operate and transfer basis to the Appellant; therefore, it is beyond doubt that the Appellant has not rendered any BSS to bus operators - Further, the adda-fees are in the nature of parking fees, which are exempt under the "renting of immovable property services". The extended period of limitation is not applicable as the appellant had submitted all the relevant information to the department in time, and there was no evidence of suppression, fraud, or misstatement on the part of the appellant – 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

Analysis of Union Budget 2026-27:
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?