2026-VIL-28-CESTAT-MUM-ST
  1. Home
  2. 2026-VIL-28-CESTAT-MUM-ST

SERVICE TAX CESTAT Cases

Service Tax – Rule 3 of Export of Service Rules, 2005 – Export of services – Tax liability – Appellants are engaged in business of providing hospitality and management services to various hotels operating under Marriott International Chain of hotels – Department claimed that Appellants were providing taxable services of Business Auxiliary Service, but had failed to pay appropriate service tax to government exchequer – Department had initiated show cause proceedings demanding service tax on taxable services provided by Appellants – Commissioner confirmed demand along with interest and penalty – Whether services provided by Appellants to their group entity located abroad would amount to export of services or otherwise – HELD – On careful perusal of various agreements entered into between Appellants with Marriott foreign entities, it transpires that relationship between parties is that of independent contractor-contractee. In terms of agreements, Appellants were only required to identify, recruit, hire and supervise the senior hotel employees in order to ensure that standards and quality of Marriott standards are maintained. Content in agreements clearly provide that no services were provided by Appellants to end customers/hotel owners on behalf of overseas entity. Under such circumstances, it cannot be said that Appellants have acted as an intermediary in dealings between overseas entities and their customers in India. On careful examination of nature of arrangements between Appellants and foreign entities vis-à-vis statutory provisions, it is abundantly clear that services provided by Appellants to overseas entities qualify as ‘export’ in terms of Rule 3 of the Rules. Conclusion arrived at by Commissioner in impugned order for confirmation of adjudged demand, by denial of such activity as export of services, does not stand the legal scrutiny. Impugned order passed by Commissioner is set aside – Appeals 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?