Beauty parlour services with franchisor product sales: retail value included in taxable value; demand and penalties largely upheld

Beauty parlour services with franchisor product sales: retail value included in taxable value; demand and penalties largely upheld https://www.taxtmi.com/highlights?id=95258 Retail sale value of franchisor's products was not excludible from the taxable value of beauty parlour services because the assessee failed to produce contemporaneous invoices/bills in the contractually prescribed manner and produced no VAT registration or VAT payment evidence, defeating the plea of independent sale; consequently, service tax demand was sustained. CENVAT credit was held inadmissible as it was never taken during the relevant period/adjudication and, in any event, cannot be availed beyond the prescribed time-limit as settled by binding Larger Bench law; consequently, credit benefit was denied. Extended limitation was upheld due to suppression with intent to evade, evidenced by non-payment and non-filing of returns despite registration; consequently, demand, interest, and Section 77(2) penalty were upheld, with Section 78 penalty modified, and the appeal dismissed - CESTAT en-us Mon, 22 Dec 2025 07:49:17 +0530 Mon, 22 Dec 2025 07:49:18 +0530 TaxTMI RSS Generator Beauty parlour services with franchisor product sales: retail value included in taxable value; demand and penalties largely upheld https://www.taxtmi.com/highlights?id=95258 Retail sale value of franchisor's products was not excludible from the taxable value of beauty parlour services because the assessee failed to produce contemporaneous invoices/bills in the contractually prescribed manner and produced no VAT registration or VAT payment evidence, defeating the plea of independent sale; consequently, service tax demand was sustained. CENVAT credit was held inadmissible as it was never taken during the relevant period/adjudication and, in any event, cannot be availed beyond the prescribed time-limit as settled by binding Larger Bench law; consequently, credit benefit was denied. Extended limitation was upheld due to suppression with intent to evade, evidenced by non-payment and non-filing of returns despite registration; consequently, demand, interest, and Section 77(2) penalty were upheld, with Section 78 penalty modified, and the appeal dismissed - CESTAT Highlights Service Tax Mon, 22 Dec 2025 07:49:17 +0530 https://www.taxtmi.com/highlights?id=95258