Waiver of employer-paid telephone charges to employees is taxable consideration for service tax; appeal dismissed, previous decision upheld SC dismissed the appeal and upheld the CESTAT order, ruling that the waiver of telephone charges (CFA) granted by the employer to employees must be ...
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Waiver of employer-paid telephone charges to employees is taxable consideration for service tax; appeal dismissed, previous decision upheld
SC dismissed the appeal and upheld the CESTAT order, ruling that the waiver of telephone charges (CFA) granted by the employer to employees must be included in the valuation for service tax. The Court found no reason to disturb the tribunal's decision and rejected the High Court's view that such free allowances, not directly received by the service provider, cannot constitute consideration for levy of service tax. The CESTAT determination that CFA forms part of taxable consideration therefore stands.
"Delay condoned." The Court declined to interfere with the impugned order dated 27.01.2025 passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chandigarh, holding that there was "no good reason to interfere" with that decision. Consequently, "the appeal is... dismissed." Pending application(s), if any, were directed to stand disposed of. The dispositive action affirms CESTAT Chandigarh's adjudication and terminates further appellate relief in this proceeding.
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