Finance Act, 1994

The Supreme Court examined appeals by the Union of India and the Central Bureau of Investigation (CBI) against a Delhi High Court order that directed the CBI to convert three preliminary enquiries into FIRs/RCs and to complete the investigation. The CBI argued that its preliminary enquiries concluded there was no invol…

The Commissioner of Service Tax appealed against M/s. Adani Gas Ltd. challenging the taxability of charges collected for supplying pipelines and measurement (SKID) equipment to gas consumers. The issue was whether Section 65(105)(zzzzj) of the Finance Act, 1994 applied, i.e., whether the supply of such tangible goods f…

The petitioner, who runs a colour photographic film developing and printing business, challenged a Ministry of Finance letter that clarified the Service Tax provisions of the Finance Act, 1994 (as amended by Act 14 of 2001). The letter stated that the taxable value of photography services is the gross amount charged, e…

Mis Apex Traders, a manufacturer of aerated water, filed a declaration of assessable value under Rule 173‑C claiming deductions for equalized freight and rent on containers (ROC). The Assistant Commissioner allowed the ROC deduction but treated the factory‑gate price as the assessable value for freight, leading to the …

The Union of India issued show‑cause notices under Section 73 of the Finance Act, 1994, demanding service tax from Coastal Container Transporters Association and its members, classifying their activities as "cargo handling services". The respondents contended that their services fell under the "goods transport agency" …

The Collector of Central Excise assessed additional duty on Orient Fabrics for alleged mis‑disclosure and undervaluation of fabric, also ordered confiscation of 35 bales and imposed a penalty. The Central Excise and Gold (Control) Appellate Tribunal allowed the appeals, holding that the Central Excise Act could not be …

The appellant, a public sector steel manufacturer, appointed the respondent as a handling contractor under a 1998 contract that contained clause 9.3 requiring the contractor to bear all taxes arising from the performance of his obligations. After the Finance Act, 1997 extended service tax to handling contractors, the a…

M/S Super Poly Fabriks Ltd entered into a "Consignment Stockistship Agreement" with GAIL. The Commissioner of Central Excise issued a show‑cause notice demanding service tax, alleging that the company acted as a clearing and forwarding (C&F) agent under Section 65(25) of the Finance Act, 1994. The assessee contended th…

The Krishi Upaj Mandi Samiti (agricultural market committees) in Rajasthan, created under the Rajasthan Agricultural Produce Markets Act, 1961, collected market fees and rent/lease charges for shops and land. The Revenue assessed service tax on the rent/lease income, leading to a CESTAT decision that the committees wer…

Gujarat State Fertilizers & Chemicals Ltd (GSFC) and Gujarat Alkalies & Chemical Ltd (GACL), both public sector undertakings, receive hydrocyanic acid (HCN) from Reliance Industries Ltd through a common pipeline and share the raw material in a 60:40 ratio. To handle the HCN, handling and incineration facilities were in…

The Commissioner of Central Excise appealed against the Gujarat Maritime Board (GMB) claiming that wharfage charges collected from its licensee, Ultratech Cement Ltd (UCL), were liable to service tax as "port services" under the Finance Act, 1994. The dispute centered on a licence agreement under the Gujarat Maritime B…

The Supreme Court considered whether assessees engaged in broadcasting television signals to subscribers are liable to pay both entertainment tax under State enactments (Entry 62, List II of the Constitution) and service tax under the Finance Act, 1994 (Entry 97, List I). The Court held that the activity of broadcastin…

The All India Federation of Tax Practitioners challenged the levy of service tax on chartered accountants, cost accountants and architects under the Finance Acts of 1994 and 1998, arguing that such tax fell within State List Entry 60 (taxes on professions) and was barred by Article 276. The Supreme Court examined the c…

The Supreme Court examined whether service tax could be levied on indivisible works contracts entered into after the Finance Act, 1994 but before the 2007 amendment that expressly made such contracts taxable. It held that the 1994 Act neither charged nor provided machinery to assess service tax on composite works contr…

The Central GST Delhi‑III (the revenue) appealed against Delhi International Airport Ltd., contending that the User Development Fee (UDF) collected from passengers under Section 22A of the Airports Authority of India Act, 1994, was a taxable service liable to service tax. The Court examined the nature of the fee, the s…

The Supreme Court examined whether Northern Operating Systems Pvt. Ltd. (the assessee) was liable to pay service tax on payments made to its overseas group companies for seconded employees. The Court held that the overseas entities supplied manpower services, making the assessee the service recipient liable for service…

The assessees, construction service providers, paid service tax under Notification 15/2004‑ST, which levies tax at 33% of the gross amount charged for construction services. In several projects the service recipients supplied certain materials (e.g., steel, cement) free of charge. The Revenue argued that the value of t…

The respondents, Gujarat Carbon & Industries Ltd., had hired transport operators before 2003 and were served with a notice demanding service tax on the gross transport charges. The Commissioner of Central Excise relied on sections 70, 73, 76, 77 and 81 of the Finance Act, 1994 and on a retrospective amendment under sec…

The appellant, Adiraj Manpower Services Pvt. Ltd., a manpower recruitment agency, entered into agreements with Sigma Electric Manufacturing to supply personnel for various manufacturing activities. The Commissioner of Central Excise issued a show‑cause notice alleging that the appellant had failed to assess and pay ser…

Safety Retreading Company (P) Ltd entered into tyre retreading contracts and was assessed service tax on the total consideration, including material costs. The issue before the Supreme Court was whether service tax is payable on the entire amount or only on the service component as defined under the Finance Act, 1994. …

The State of Gujarat appealed against a Gujarat High Court order that had directed the GST authority to complete an adjudicatory process within eight weeks and had granted the respondents protection from arrest after they were served summons under Section 69 of the CGST Act, 2017 for interrogation. The respondents, fea…

The petitioners, customers of goods‑transport operators and clearing‑and‑forwarding agents, challenged the constitutional validity of Sections 116 and 117 of the Finance Act 2000 and Section 158 of the Finance Act 2003 which retrospectively validated service‑tax levies that had been struck down in *Laghu Udyog Bharati*…

HT Media Ltd organized an annual Hindustan Times Leadership Summit and hired foreign speakers through booking agents such as the Washington Speakers Bureau and Harry Walker Agency. The tax authorities issued show‑cause notices and later a demand of Service Tax, asserting that the fees paid to the speakers via the agent…

M/s Stemcyte India Therapeutics, a joint‑venture stem‑cell bank, was assessed service tax for its enrolment, collection, processing and storage of umbilical cord blood stem cells for the period 1 July 2012 to 16 February 2014. The appellant claimed exemption as a "Healthcare Service" under Notification No.25/2012‑ST an…

The Supreme Court examined two appeals filed by the Commissioner of Customs, Central Excise and Service Tax challenging High Court orders that granted service‑tax refunds to Shapoorji Pallonji & Co. Ltd. (SPCL) for construction work at IIT Patna and NIT Rourkela. The core issue was whether these educational institution…

The appellant, Sparkway Enterprises, held a licence from the Airports Authority of India (AAI) to collect airport admission ticket charges at Karipur Airport and paid a monthly licence fee to AAI. The Central Board of Excise and Customs issued a show‑cause notice demanding service tax and education cess on the collecte…

The Kerala State Electricity Board (KSEB) entered into a contract with the foreign consultancy SNC Lavalin for engineering services, agreeing to pay the service tax on the foreign company's behalf. KSEB failed to make the payments and argued that, under the Finance Act, 1994, the tax liability rested on the service pro…

Mis. Mercantile Company received raw chemicals from Mis. T. Paul & Sons, supplied by Mis. Philips India Ltd., and carried out filtering, repacking into 50 ml containers, labeling and marketing them as distinct cleaning products. The Central Excise authorities classified these goods under sub‑heading 3402.90 of the Cent…

The Supreme Court examined whether the definition of “consulting engineer” in Section 65(31) of the Finance Act, 1994, before its 2005 amendment, covered a body corporate. The CESTAT had held that it did not, thereby exempting M/s Sepco Electric Power Construction Corp. from service tax. Relying on a 1997 circular and …

Mis. Shoeline was served a show‑cause notice for non‑payment of service tax on commissions paid to overseas agents for the period July 9, 2004 to March 31, 2006. The Joint Commissioner confirmed the demand in February 2008, but the appellant neither filed a statutory appeal nor challenged the order, instead paying the …

Suzlon Energy Ltd imported engineering design and drawing blueprints from its sister companies abroad for manufacturing wind turbine generators and classified them as "paper" goods for customs, claiming nil duty and arguing they were not liable to service tax. The Revenue issued show‑cause notices demanding service tax…

The Union of India challenged the liability of several private companies, including Future Gaming Solutions, to pay service tax on the sale of paper and online lottery tickets for the Government of Sikkim. The High Court of Sikkim had set aside service‑tax notices issued under various amendments to the Finance Act, 199…

The Commissioner of Service Tax issued show‑cause notices to Citibank alleging that the Rs 2 interchange fee it earned as an issuing bank on credit‑card transactions was taxable service income. Citibank contended that it performed no service, that the fee was interest, and that tax had already been paid by the acquirin…

M/s Nagarjuna Construction Co. Ltd. entered into composite construction contracts and paid service tax before 1 June 2007 under the then‑applicable clauses (zzd), (zzq) and (zzzh) of Section 65(105) of the Finance Act, 1994. After the amendment introducing clause (zzzza) and the Works Contracts (Composition Scheme for …

M/s Imagic Creative Pvt Ltd, an advertising agency, filed returns for service tax under the Finance Act, 1994 and for VAT under the Karnataka Value Added Tax Act, 2003. The VAT authority classified the entire transaction, including the concept‑creation service for which service tax had already been paid, as a single in…

The appellants, who were registered lottery dealers in Kerala, bought state lottery tickets in bulk at a discount and resold them to retailers on an outright basis, earning a profit. The Central Excise authorities directed them to obtain service‑tax registration and pay tax under the heading ‘business auxiliary service…

Signode India Ltd. performed packaging of goods within the manufacturing unit of its principal manufacturer. The Revenue argued that this constituted "cargo handling service" under Section 65(23) of the Finance Act, 1994 and sought service tax for the period before the 2005 amendment. The appellant contended that its a…

The Union of India (lessee) and Bengal Shrchi Housing Development Limited (lessor) entered into a three‑year lease for commercial premises. Dispute arose over who should pay service tax on the lease. The High Court held the lessee liable, but the Division Bench reversed, holding the lessor liable based on the Service T…

The assessees, who provide various services, received reimbursements for out‑of‑pocket expenses such as travel and hotel costs. They paid service tax only on the fees for services, not on the reimbursable expenses, whereas Rule 5 of the Service Tax (Determination of Value) Rules, 2006 required inclusion of such expense…

M/s Diebold Systems supplied ATMs to banks under turnkey contracts that included supply, installation and commissioning. The Revenue sought service tax on 33% of the contract value, treating that portion as consideration for "commissioning or installation" under s.65(105)(zzd) of the Finance Act, 1994. The CESTAT held …

The Court examined whether a composite contract for the manufacture, supply and installation of lifts constitutes a "sale of goods" or a "works contract" for tax purposes under Article 366(29A)(b) of the Constitution and related sales‑tax statutes. The petitioners argued that the installation component made the contrac…

Quick Heal Technologies Ltd. sold antivirus software on CDs together with a license key and free updates to end‑customers. The Revenue argued that the transaction comprised two components – sale of the CD (goods) and provision of updates (service) – and that service tax should be levied on the entire consideration desp…

The appellants, M/s. Coal Handlers Pvt. Ltd., performed agency services for Ambuja cement companies, supervising coal loading and liaising with railways, but did not handle the clearing, warehousing, or forwarding of the coal. The Revenue claimed that these services fell within the definition of a "clearing and forward…

The case concerned whether the sale, promotion and marketing of state‑run lottery tickets by M/s Martin Lottery Agencies Ltd. attracted service tax under Section 65(19) of the Finance Act, 1994. The High Court had held that lottery tickets are not "goods" and that the distributor’s activities were merely promotion, not…

The respondent, a class‑I civil contractor, completed work on the Koyna Hydro Electric Project funded by the World Bank and claimed duty drawback as a "deemed export" under the Exim Policy 1992‑1997. After multiple rejections by the DGFT, a Policy Interpretation Committee in 2002 allowed the drawback, which was paid in…

The respondents, co‑owners of a 42‑room residential building in Bangalore, leased the property to a company which sub‑let it as a hostel for students and working professionals. The respondents sought an advance ruling that the rent received was exempt from GST under Entry 13 of Notification 9/2017, which provides exemp…

Idea Mobile Communication Ltd sold SIM cards to its subscribers and charged both sales tax and service tax on activation. The dispute centered on whether the value of the SIM cards should be taxed as a service under Section 65(105) of the Finance Act, 1994, or as a sale of goods under the Kerala General Sales Tax Act, …

The State of Uttar Pradesh appealed against the High Court’s order that the Department of Telecommunications (DoT) was not liable to Uttar Pradesh Trade Tax on rentals collected from telephone subscribers. The Supreme Court examined whether the DoT qualifies as a "dealer" under Section 2(c) of the Uttar Pradesh Trade T…

The Calcutta Club, a Section 25 company operating as a members' club, was served with a notice for non‑payment of sales tax on food and drinks supplied to its permanent members. The Club argued that, under the doctrine of mutuality, no sale occurred because the supplier and the buyer were the same persons, a view uphel…

The Supreme Court considered a group of civil appeals challenging service‑tax assessments on composite (indivisible) works contracts that were levied for periods before the Finance Act, 2007 introduced a definition of "works contract" under s.65(105)(zzzza) of the Finance Act, 1994. The Revenue argued that service tax …

The appellant (Revenue) challenged the CESTAT’s order that allowed M/s Interarch Building Products to treat its construction services as a works‑contract service, pay service tax on the total contract value and claim CENVAT credit on inputs. The Court examined whether Rule 2A of the Service Tax (Determination of Value)…

The Supreme Court examined whether the provision of telephone services by telecom operators constitutes a sale of goods, a service, or a composite contract of both, and consequently whether State governments can levy sales tax under Entry 54 of List II. The petitioners argued that the transaction is purely a service, i…

International Merchandising Co. organized the Chennai Open tennis tournament and entered into agreements with First Serve Entertainment (FSE) for a player's appearance, with Zee Telefilms for broadcast rights, and with Trans World International for overseas telecast rights. The Service Tax Commissioner issued demands u…

UltraTech Cement Ltd claimed Cenvat credit for service tax paid on outward transportation of cement from its factory to customers' premises during Jan‑Jun 2010. The Revenue argued that such transport service, being beyond the "place of removal", is not an "input service" under Rule 2(l)(ii) of the Cenvat Credit Rules, …