2026-VIL-984-CESTAT-BLR-ST
  1. Home
  2. 2026-VIL-984-CESTAT-BLR-ST

SERVICE TAX CESTAT Cases

Service Tax on Gold Bullion Consignment - Profit Margin as Taxable Value - Appellant imports gold bullion on consignment basis pursuant to RBI Master Circular, retains the gold in its vaults, and sells it at a later date, settling with the supplier based on the difference between the sales price and import price, which constitutes the bank's profit margin - Whether the profit margin earned by the bank from the sale of imported gold bullion can be subjected to service tax on the ground that the bank acts as a consignment agent to the foreign supplier – HELD - No service is being rendered by the bank to the supplier; rather, the bank purchases and sells the gold bullion and after sale settles with the supplier based on the payment terms stipulated in the consignment agreement - Under the consignment arrangement, the gold remains in the possession and ownership of the supplier until the gold is purchased and paid for by the bank, and the bank merely earns a profit margin on the resale of the gold coins - Although the definition of 'Clearing and Forwarding Agency' includes consignment agent, in the instant case no such service is being rendered by the bank to the supplier and no consideration is being received from the supplier for any service. Therefore, the profit margin cannot be considered as the taxable value as there is no service being rendered by the bank as a consignment agent - The impugned order levying service tax on the profit margin is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
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

Security-Code
New Code?

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.

Security-Code
New Code?

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?