Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Actual Amount received from m/s BPCL for Sale of Fleet Cards cannot be Subject to Levy of Service Tax: CESTAT
Excise, VAT & Custom
The Chennai bench of CESTAT ruled that the actual amount received from M/s. BPCL for the sale of fleet cards cannot be subjected to service tax. The appellant, M/s. Perundurai Lorry Urimaiyalargal Sangam, faced a show cause notice proposing service tax demands under various categories for the period 2007 to 2012. \r
However, the tribunal observed that the appellant had collected only freight charges from M/s. BPCL for supplying lorries for transporting petrol, with no additional hire charges. \r
Moreover, M/s. BPCL had already paid service tax on the freight charges. Referring to a similar case precedent, the tribunal concluded that the demand of service tax under the category of Supply of Tangible Goods Services cannot be sustained. Thus, CESTAT set aside the demand of service tax under this category.
