https://www.taxtmi.com/caselaws?id=755203 The CESTAT Ahmedabad allowed the appeal regarding service tax on advance payments. The tribunal held that advances received by the appellant were in the nature of loans for purchasing capital goods, backed by bank guarantees, and later adjusted against service charges upon completion of contract stages. Following precedent in Thermax Engineering case, the tribunal ruled that such advances constitute earnest money, not taxable at receipt time. Service tax liability arose only when advances were proportionately included in stage-wise invoices. The original order was set aside as without merit. en-us Fri, 05 Jul 2024 00:00:00 +0530 Mon, 08 Jul 2024 11:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755203 The CESTAT Ahmedabad allowed the appeal regarding service tax on advance payments. The tribunal held that advances received by the appellant were in the nature of loans for purchasing capital goods, backed by bank guarantees, and later adjusted against service charges upon completion of contract stages. Following precedent in Thermax Engineering case, the tribunal ruled that such advances constitute earnest money, not taxable at receipt time. Service tax liability arose only when advances were proportionately included in stage-wise invoices. The original order was set aside as without merit. Case-Laws Service Tax Fri, 05 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755203