Classification in tax law: differential construction service exemptions risk arbitrary class legislation and burden educational charities.
The note argues that differential service tax treatment on construction of charitable educational institutions constitutes arbitrary class legislation because religious and educational charities share the same public-benefit character; prior circulars exempted construction of charitable educational institutes, but a later notification grants disparate exemptions, causing tax incidence to fall on educational societies and undermining their charitable purpose and tax credit mechanisms. (AI Summary)

Right to use software treated as sale of goods, precluding service tax when possession and control transfer.
Software copied and supplied for use, including canned mobile apps, acquires the attributes of goods once copies are made and marketed; transfer of the right to use by giving legal possession and effective control constitutes a sale of goods and is subject to State VAT. Incidental installation or minor customization included in the sale price does not convert the transaction into a service, whereas separately charged, distinct services may attract Service Tax. (AI Summary)

Double taxation challenge over service tax and state VAT in restaurant services seeks reconciliation of overlapping tax bases.
The petition challenges the constitutional validity of service tax on restaurant services and argues that concurrent application of service tax and state VAT creates overlapping taxation because the central levy is applied to part of the billed value while the state taxes the entire billed value, invoking the mutual exclusivity principle between central and state taxes; the High Court has issued notices to the Union and the State and listed the matter for further hearing. (AI Summary)

Place of removal must be based on contractual facts; specified-rate liability does not automatically fix the factory gate.
Place of removal must be determined from the facts and contractual terms of each transaction; there is no statutory or regulatory basis to treat charging duty at a specified rate as automatically fixing the factory gate as place of removal. If the contract effects sale at destination, that destination may be the place of removal, and service tax on transportation to destination may be available for cenvat credit; the matter was remitted for fresh fact-based determination. (AI Summary)

British calendar month interpretation preserves appeal timeliness under service tax delay rules and mandates merits reconsideration.
The General Clauses Act's definition of "month" as a British calendar month governs computation of the appeal and condonable periods in service tax proceedings; because that method of calculation placed the appellant's filing within the condonable period, the appeal could not properly be dismissed as time barred, and the matter was remanded for adjudication on merits with the appellant to be heard. (AI Summary)

Service tax on advertising space requires official commencement notification before expanded levy can take effect.
The Finance Act, 2014 broadens potential service tax coverage for advertising across multiple media while preserving a narrowly defined print media exemption for sale of advertisement space. The substituted negative list entry that affects the tax status of advertising is subject to a central government commencement notification; until that notification is issued the substitution does not take effect, and collections predicated on the substitution are premature. (AI Summary)

Additional customs duty refund procedures require payment at import, explicit invoice denial of duty credit, and documentary tax proof.
Refund of the additional customs duty on imported goods sold as such is available where the importer pays all duties at import, issues sales invoices expressly denying credit for the additional duty, files a refund claim with the jurisdictional customs officer, and furnishes documentary proof of payment of the additional duty and of appropriate sales tax or VAT on resale, subject to a one year filing limit and satisfaction of the customs officer. (AI Summary)

Place of removal determines service tax refund eligibility; ex-factory delivery may make post-factory services refundable.
The core contention is whether services used after the factory gate constitute usage beyond the place of removal under Notification No. 41/2012-ST. The department treats FOB delivery at the port as the place of removal, denying refunds for services up to shipment, while exporters contend sales are ex-factory and delivery to a carrier at the factory effects removal, excluding post-removal transport and insurance from excise value and making such services eligible for refund or specified drawback. (AI Summary)

Cenvat credit on capital goods can be deferred when exiting SSI; earlier purchases claimable on pro rata depreciated basis.
Manufacturers crossing the SSI exemption should register before crossing or before purchasing capital goods to preserve cenvat credit and file returns accordingly. Rule 11(2) mandates reversal only for inputs in stock, in process, or contained in final products and does not cover capital goods, permitting deferment of credit on current year capital goods. Prior year capital goods may be credited if available when duty liability begins, with a prudent approach to claim pro rata depreciated value. These claims attract departmental scrutiny and potential show cause notices. (AI Summary)

Cenvat credit restriction may be reviewed to distinguish bonafide defaults from willful defaults and impose automatic penalties.
Rule 8(3A) bars use of cenvat credit where an assessee defaults in duty payment beyond the prescribed grace period, obliging consignment wise payment; the rule is criticised for not distinguishing bonafide from willful defaults and for conflicting with tribunal and court decisions that have permitted credit use during default or limited penalties. The Central Board has initiated a review and sought field input on the rule's effectiveness, enforcement practice, confiscation of goods cleared during default, and the possibility of replacing the present regime with an automatic penalty mechanism to reduce adjudication. (AI Summary)

SSI exemption for rent depends on whether co owners act as an association or as separate individual providers.
Eligibility of SSI exemption for rent from immovable property turns on whether co owners act as an association of persons or as individual providers; if each co owner's share and rent receipt are definite and ascertainable, they are taxable and eligible for exemption individually, and mere division of receipts does not by itself create a collective juristic person. (AI Summary)

Contract carriage exemption for school transport allows exemption from service tax unless used for tourism or charter.
Transport charges charged by educational institutions for carrying students and staff typically fall within the definition of contract carriage under the Motor Vehicles Act and, as such, are covered by Point 23(ii) of the service tax mega-exemption notification when services are provided by the institution. Contract carriage requires carriage of specified passengers under an express or implied contract between fixed points without picking up outsiders. However, contract carriages used for tourism, conducted tours, charter or hire are excluded from this exemption. (AI Summary)

Export of services: place of provision and service classification determine taxability of call centre and BPO operations.
Export of services for call centre and BPO operations requires satisfying Rule 6A conditions, especially the place of provision. If the place of provision is outside India and the service is not excluded, and payment is in convertible currency with provider and recipient being independent establishments, the service may qualify as export. Classification under Place of Provision Rules determines whether the service is treated as rendered in physical presence or as an online information and database access or retrieval service; the latter requires automated electronic delivery with minimal human intervention. Where multiple rules apply, the later rule governs, subject to meeting the online information criteria for export treatment. (AI Summary)