#Negative List Regime

CESTAT quashed a Rs 22.84 crore service tax demand against HCL Infosystems, holding that the services do not fall within the negative-list taxable categories and are not deemed sales or advertising agency services. The ruling narrows the tax base under the negative-list regime, benefitting IT service providers offering consulting, maintenance and related services.

CESTAT Chennai ruled that leasing tea estates along with incidental labor, machinery, and infrastructure constitutes a single composite agricultural activity, not a taxable service under the Negative List regime. This clarifies that farmers and plantation owners can lease land with operational assets without triggering service tax liability, reinforcing the exemption for genuine agricultural operations.

CESTAT Bangalore rules that outbound tour services provided by Indian operators to Indian tourists were taxable under the Service Tax regime prior to the Negative List introduction, rejecting the 'export of services' claim. The ruling clarifies territorial applicability of taxable services, impacting tour operators' compliance obligations for pre-2012 periods.