Topic
Approval of a resolution plan under IBC extinguishes tax liabilities, requiring refund of pre-deposit and quashing tax recovery orders; this bars authorities from pursuing dues after plan approval, affecting taxpayers and tax departments.
CESTAT Bangalore rules that royalty payments for technical know-how under a Technical License Contract Agreement do not constitute Intellectual Property Rights (IPR) services under Section 65(55a) of the Finance Act, 1994, setting aside service tax demand.
CESTAT Chennai rules that non-air-conditioned restaurant services sourced from a common kitchen are exempt from service tax if clearly demarcated from AC sections. The ruling underscores strict compliance with Notification No. 03/2013-ST, impacting restaurant operators with mixed seating arrangements.
Bombay High Court stayed a Rs.24.41 crore IGST demand on Singapore Airlines, ruling that airline operators are not 'recipients' of Computerized Reservation System (CRS) services under the CGST Act. The court relied on precedent to hold that IGST liability cannot be imposed where the operator neither directly pays for nor receives the services.
CESTAT Allahabad rules that service tax demand is invalid if services remain incomplete due to the recipient's bankruptcy, even if invoices were issued. The tribunal set aside penalties and limited demand to only realised amounts, reinforcing that tax liability arises upon service completion, not mere invoicing.
The Tribunal holds that manpower supply services to corporate entities attract RCM under Notification 30/2012-ST, shifting tax liability to the recipient and invalidating demands based solely on Form 26AS discrepancies.
CESTAT Hyderabad holds service tax cannot be imposed on construction services where flats are sold with separate construction agreements for personal use, clarifying classification under Works Contract.