service tax demand Archives

service tax cannot be confirmed without evidence

Case Briefs Tribunals/Commissions/Regulatory Bodies

‘Mechanical reliance on income tax data impermissible’: CESTAT sets aside service tax demand confirmed without corroborative evidence

“Mere entries in income tax returns or Form 26AS cannot, by themselves, establish liability under the Finance Act, 1994, unless corroborated by evidence demonstrating rendition of taxable service.”

damages for dispute settlement not declared service

Case Briefs Tribunals/Commissions/Regulatory Bodies

Damages received for dispute settlement of agreement to sell, not taxable as ‘declared service’ under S. 66-E(e) of Finance Act, 1994: CESTAT

A settlement of dispute is clearly not an agreement to tolerate any act or situation. It is beyond the scope of Section 66-E(e) of the Finance Act, 1994 and thus not a ‘declared service’.

Service tax on assignment under copyright service

Case Briefs Tribunals/Commissions/Regulatory Bodies

Whether service tax can be levied on transfer or assignment of copyright of the film produced under copyright service? CESTAT answers

The Adjudication Authority stated that the appellant’s activity of receiving income from transferring temporarily or permitting the use of the right vested in the film produced by them to their clients fell under the definition of copyright service under Section 65(105)(zzzt) of the Finance Act, 1994.