2026-VIL-1748-CESTAT-DEL-ST
  1. Home
  2. 2026-VIL-1748-CESTAT-DEL-ST

SERVICE TAX CESTAT Cases

Service Tax - Taxability of tender fee collected by a State corporation for tender documents - Appellant collected tender cost/fee from bidders, which the Commissioner (Appeals) treated as part of service covered by Section 65B(44) of the Finance Act, 1994 - Appellant contended that the amount was recovery towards sale of tender documents, being printed material containing details of work, formats of agreement, terms and conditions and bid dates, which amounts to trading of goods and not service - Whether the tender fee collected by the Appellant is exigible to service tax - HELD - Service tax is required to be paid for a taxable service, for the provision of that service by one person to another, and there must be consideration for that service. The amount collected was only the prescribed cost of tender documents, and the transaction can be viewed as sale or supply of documents rather than provision of a taxable service - A tender is ordinarily only an invitation to offer and does not itself create a contractual service arrangement with every bidder. There is no identifiable service between the tendering authority and the bidder, and no quid pro quo while receiving the said amount. Services provided in lieu of fees charged by the Government or local authority are taxable if and only if the payment is made for getting a service in return, and against the tender fee no service has been rendered except providing the tender documents. The tender cost/fee is wrongly held to be an amount received towards provision of service, as supported by the earlier decisions of the Tribunal - 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 Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
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?