TaxTMI 
TaxTMI 
2025 (7) TMI 1411
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....Sale of sweet boxes • The sale of sweet box are taxable under the head of Outdoor Catering Service as per the provision of Rule 2C of Service Tax (Determination of Value) Rules, 2006, wherein goods being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity at a restaurant or as outdoor catering shall be specified percentage of the total amount charged for such supply. Legal services, Goods transportation agency services & manpower agency services • Legal services, Goods transportation agency services & manpower agency services were liable to tax under reverse charge mechanism under Notification No. 30/2012- ST dated 20.06.2012. Payment of director's remuneration • The Department alleged that these directors were not full-time employees/whole time director but were sharing time with one other Company. Mr. Dipak kumar Singh and Mrs. Laxmi Singh were engaged as employees in two companies - the Appellant Company and M/s. Kanak Land Development Co. Pvt. Ltd. Further, Mr. Arnish Singh & Yash Singh were engaged as employees in two companies - th....
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....ations has been considered as taxable service and service tax has been confirmed on 60% of total amount as service portion. 3.1. In this regard, the Appellant submits that the supply of sweet boxes is a transaction of sale of goods and no element of service is involved in the said transaction. The dominant nature of the transaction was sale only, and no services, amenities etc. were offered to the customers along with the sale of sweet boxes. The mere fact that the Appellant is registered as an outdoor catering service provider cannot lead to the conclusion that all transactions undertaken by them would be taxable under outdoor catering service.The Appellant submits that the entire demand is based on a superficial understanding of the department. The appellant submitted a copy of the sample invoices issued in this regard. 3.2. In support of their contention that no service tax is payable on a transaction which is considered as a 'sale', the appellant placed their reliance on the following rulings: Tamil Nadu Kalyana Mandapam Assn. Versus Union Of India - 2004 (4) TMI 1 - Supreme Co Hotel Priya v. Commissioner 2018 (9) TMI 1663 - CESTAT CHENNAI 3.3. In view of the abo....
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....legally flawed and contrary to established jurisprudence. Thus, the appellant submits that the demand of service tax confirmed in the impugned Order on this count is liable to be set aside. 7. Regarding the demand of service tax of Rs 19,08,000/- confirmed on the remuneration paid to Four directors, the appellant submits that it has been alleged in the impugned order that they were not full-time employees of the company; the Directors were also working in other companies; the Remuneration has been paid as professional fee for services rendered. Accordingly, it has been held that the remuneration paid to Directors are taxable under RCM as per Notification No. 30/2012-ST. 7.1. The Appellant submits that remuneration has been paid to the directors as salary and on such amount TDS was also deducted under the salary head Unser section 192 of the Income Tax Act, 1961& Form 16 was being issued to such directors. In view thereof, it is submitted that the service provided by Director as an employee to the employer is not liable to pay service tax as per Section 65B (44) of the Finance Act, 1994. 7.2. As per the above sub clause (b) of sub- Section (44) of Section 65 of Finance Act,....
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....xecutive director and employee in another company, especially when actual executive functions and employment remuneration exist. Therefore, the Revenue's approach of mechanically invoking service tax merely based on dual appointments, without appreciating the actual nature of engagement (executive vs. non-executive) and without rebutting the salary and TDS documentation, is contrary to law and binding departmental clarifications. 7.6. Reliance in this regard is placed on the following rulings: • Amara Raja batteries v. Commissioner (2024) 21 Centax 216 (Tri.-Hyd) • Power Mech Projects Ltd. v. Commissioner 2025 (3) TMI 965 - CESTAT Hyderabad • Allied Blenders & Distillers Pvt. Ltd. v. Commissioner 2019 (24) G.S.T.L. 207 (Tri. - Mumbai) • Lalitha Chem Industries Ltd. v. Commissioner 2024 (11) TMI 1185 - CESTAT Ahmedabad • Maithan Alloys Ltd v. Commissioner of C.Ex & ST, Bolpur [2019 (4) TMI 1595 - CESTAT KOLKATA] 7.7. Thus, the demand of service tax under reverse charge mechanism on amounts paid as salary to the four directors, where TDS has been duly deducted under Section 192 and Form 16 issued, is unsustain....
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.....10.2022] - CESTAT Ahmedabad. 8.3. Accordingly, the appellant submitted that the demand confirmed on this count is liable to be set aside. 9. The Ld. A.R reiterated the findings in the impugned order. 10. heard both sides and perused the appeal documents. 11. Regarding the demand of service tax Rs.56,159/- confirmed on the sale of sweet boxes, I find that the supply of sweet boxes is a transaction of sale of goods and no element of service involved in the said transaction. The dominant nature of the transaction was sale only, and no services, amenities etc. were offered to the customers along with the sale of sweet boxes. The mere fact that the Appellant is registered as an outdoor catering service provider cannot be the reason to conclude that all transactions undertaken by them would be taxable under outdoor catering service. I find that when the sweet boxes were delivered as per customer order, It is a sale of goods and the said transaction cannot be treated as outdoor catering service simply because the seller is registered under that category. I have perused the copy of the sample invoices submitted by the appellant. The invoices clearly indicate that the transacti....
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....r organising any official, social or business function. A mandap-keeper apart from proper maintenance of the mandap, also provides the necessary paraphernalia for holding such functions, apart from providing the conditions and ambience which are required by the customer such as providing the lighting arrangements, furniture and fixtures, floor coverings etc. The services provided by him cover method and manner of decorating and organising the mandap. The mandapkeeper provides the customer with advice as to what should be the quantum and quality of the services required keeping in view of the requirement of the customer, the nature of the event to be solemnized etc. In fact the logistics of setting up, selection and maintenance is the responsibility of the mandap-keeper. The services of the mandap-keeper cannot possibly be termed as a hire purchase agreement of a right to use goods or property. The services provided by a mandap-keeper are professional services which he alone by virtue of his experience has the wherewithal to provide. A customer goes to a mandapkeeper, say a star hotel, not merely for the food that they will provide but for the entire variety of services provided the....
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....d rates to Education Department. The service which is covered under Section 65(105)(zzt) is the service provided or to be provided to any person by an "outdoor caterer" and not by any caterer. The outdoor caterer as defined in Section 65(76a) means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. Since the appellant are preparing mid day meals in their Institute and not in the schools where the meals are served and are not involved in serving of the meals in any manner, in our view they are not covered by the definition of "outdoor caterer" and hence their activity of preparing and supplying meals for mid day scheme would not be covered by the definition of taxable service under Section 65(106(zzt) Accordingly the duty demand on this count would not be sustainable." 7. From the discussions made above and also from the facts presented before us, we are of the considered opinion that the activity does not fall within the definition of outdoor catering service. The demand therefore cannot sustain. The impugned order is set aside....
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.... I find that there is no dispute that the amount of Service Tax liability which is contested before the Bench is in respect of the services rendered by M/s. Naranji Peraj Transport Co., M/s. Pathik Roadlines and Transport Corporation of India Ltd. On perusal of the certificates issued by these transport companies, as annexed page Nos. 36, 37 & 38, I find that these transporters have categorically stated that the Service Tax liability for the invoices raised on the appellant has been discharged by them and they had also mentioned their Service Tax registration number and PAN number in their certificates. As against such documentary evidences, the first appellate authority's findings as to no authentic documentary evidence has been produced, seems to be incorrect. Since the certificates clearly indicate the Service Tax registration number, the least that could have been expected from the Revenue, was to call for the details from the concerned jurisdictional Service Tax authorities. Having not done, the lower authorities cannot shift the entire blame on the appellants for having not produced any authentic documentary evidence. 9. I find that the decision of this Bench in ....
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....e Company is outside the scope of service. For ready reference, the relevant clarification issued by Board is reproduced below: "Below mentioned issues have been referred to the Board seeking clarifications,- (i) applicability of service tax under 'Business Auxiliary service' on commission paid to Managing Director / Directors (whole time, or Independent) by the company, (ii) applicability of service tax on Independent Directors who are part of the Board of Directors under 'Management Consultant service'. 2. Both the matters have been examined by the Board and the clarifications are as under, - (i) Some Companies make payments to Managing Director/Directors (Whole-time or Independent), terming the same as 'Commissions'. The said amount paid by a company to their Managing Director/Directors (Whole-time or Independent) even if termed as commission, is not the 'commission' that is within the scope of business auxiliary service and hence service tax would not be leviable on such amount. (ii) The Managing Director / Directors (Whole-time or Independent) being part of Board of Directors perform manageme....
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....gard, I find that the input services were received by the Appellant in the course or furtherance of its renting an immovable property business. Hence, I hold that there is no violation of Rule 9 of CENVAT Credit Rules, 2004. Thus, I hold that the appellant is eligible for the credit availed by them on the basis of the said invoices and hence I set aside the impugned order dialling the Cenvat credit on the above ground. 14.1. Regarding the demand for reversal of Cenvat credit of Rs.2,94,809/-, I find that the the impugned order has disallowed the credit on the ground that service tax was not paid by M/s Sonu Services under RCM. In this regard, I find that the stand of the department is not sustainable. Once service tax is paid and the appellant has received it proper invoice evidencing payment of the tax, CENVAT credit is available whether service tax is paid by service provider or recipient. In support of this view, I rely on the decision in the case of Srini Link v. Commissioner [Final Order No. A/ 11246 /2022 dated 19.10.2022] - CESTAT Ahmedabad. 15. Regarding the penalties imposed on the appellant, I find that penalties have been imposed as the appellant has not paid servi....