#Service Tax Rules

CESTAT ruled that a taxpayer may carry forward surplus service tax and set it off against liability in any later month or quarter, not just the immediate period prescribed by the revenue. This expands the relief available under Rule 6(4A) of the Service Tax Rules, giving businesses greater cash-flow flexibility. The decision applies to all service-tax payers with excess tax payments.

CESTAT Chandigarh rules that incentives paid by Computer Reservation Systems/Global Distribution Systems (CRS/GDS) to air travel agents do not constitute taxable 'Business Auxiliary Service' under Service Tax law. The ruling provides relief to travel agents by exempting such payments from tax liability, while also clarifying the treatment of fuel surcharges, abatement, and CENVAT credit rules.

CESTAT Delhi rules that refund claims for service tax paid on unrendered services cannot be denied on limitation grounds under Section 11B of the Central Excise Act. The tribunal directs authorities to decide refunds solely on unjust enrichment principles, offering relief to businesses transitioning to GST.