Supreme Court Issues Notice On Birla Sun Life Insurance's Plea Against Service Tax On Life Insurance Charges

The Supreme Court on Friday issued notice on Birla Sun Life Insurance Co. Ltd.'s special leave petition challenging a Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai order that partly upheld service tax demands on charges collected from life insurance policyholders. The Tribunal, in its April 10, 2026 order, set aside service tax demands on surrender, discontinuation and foreclosure charges, relying on its earlier rulings in similar cases involving life insurance companies. ...

Supreme Court Issues Notice On IOCL's Plea Against Service Tax On Crude Oil Storage At Barauni Refinery

The Supreme Court on Monday issued notice on a plea filed by Indian Oil Corporation Limited (IOCL) challenging a Patna High Court ruling. The High Court had held that the terminal facility used for storing crude oil at its Barauni Refinery amounted to an independent “storage and warehousing” service liable to service tax.A Bench of Justice Manoj Misra and Justice Vijay Bishnoi briefly heard IOCL's challenge to the High Court ruling before issuing notice. The case concerns whether storage of...

Supreme Court Upholds TVS Motor's Referral Charges As Business Auxiliary Service, Sets Aside Penalty

The Supreme Court on 19 August held that TVS Motor Company Limited was liable to pay service tax on referral charges it received from banks and an insurance company for facilitating vehicle loans and insurance policies, treating the charges as Business Auxiliary Service under the Finance Act, 1994. However, the Division Bench comprising Justices J.B. Pardiwala and K. Vinod Chandran set aside the penalty imposed on the company under Section 78 of the Finance Act, after finding that it had paid...

Revenue Cannot Levy Service Tax Through Notional Apportionment Of Indivisible Turnkey Contracts: Supreme Court

The Supreme Court has held that the Revenue cannot artificially split an indivisible turnkey contract and levy service tax on a notional portion of the total consideration towards installation and commissioning. Such segregation was not permitted under the law during the relevant period, from July 2003 to April 2006.A Bench of Justice Prashant Kumar Mishra and Justice Shree Chandrashekhar made the observation while upholding a CESTAT order that had set aside service tax demands against Diebold...

Supreme Court Holds BPCL, HPCL Liable For ₹16.6 Crore Service Tax For Marketing MGL's CNG

The Supreme Court on Monday held that Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL) are liable to pay more than ₹16.6 crore in service tax for facilitating the sale of Mahanagar Gas Ltd.'s (MGL) compressed natural gas (CNG). It ruled that the two public sector oil companies rendered Business Auxiliary Service to MGL by promoting and marketing its CNG, instead of purchasing and reselling the fuel. "The agent Corporations provide promotional services...

Supreme Court Dismisses Fox Mandal's Appeal In ₹3.89 Crore Service Tax Case

The Supreme Court recently (March 25) dismissed an appeal filed by Fox Mandal and Company against the Commissioner of Central Goods and Service Tax, Noida, declining to interfere with the CESTAT order, which upheld service tax and CENVAT-related demands aggregating to about Rs. 3.89 crore.While refusing to interfere with the CESTAT judgment dated December 11, 2024, which had upheld substantial service tax demands and remanded certain issues for reconsideration, a bench of Justices Pamidighantam...

Supreme Court Stays CESTAT Order Against Prism Johnson In ₹11.25-Crore Service Tax, CENVAT Credit Case

The Supreme Court on Monday, issued notice and granted an interim stay on an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi against listed building materials company Prism Johnson Limited. The tribunal had upheld a service tax demand of about Rs 11.25 crore and denied CENVAT credit of around Rs 7.70 crore in related excise proceedings. A bench comprising Justice J.B. Pardiwala and Justice Vijay Bishnoi passed the order after hearing senior counsel...

Supreme Court Refuses To Entertain Ola Parent ANI's Plea Against Delayed Service Tax Order

The Supreme Court of India has declined to interfere with a Bombay High Court order directing ANI Technologies Private Limited, the parent company of Ola Cabs, to pursue a statutory appeal against a service tax demand. A Bench of the Chief Justice of India Surya Kant and Justice Joymalya Bagchi held that no valid ground was made out to disturb the High Court's decision. The court agreed that the writ petition was rightly not entertained. The dispute relates to a service tax adjudication order...

Booking Speakers For Events Is Not Event Management, No Service Tax Under That Head: Supreme Court

Holding so, the Court quashed the service tax demand raised against HT Media for booking speakers through international agents for its Leadership Summit.

GST Exemption For Residential Lease Applies When Lessee Sub-Leases Building For Hostel/PG Use : Supreme Court

To avail the GST exemption, it is not necessary that the lessee should reside in the property.

Transfer Of Title In Immovable Property Doesn't Attract Service Tax : Supreme Court

The Supreme Court has clarified that an activity which merely involves the transfer of title in immovable property by way of sale cannot be treated as a “service” under the Finance Act, 1994. Consequently, such transactions lie outside the ambit of service tax.A bench comprising Justices JB Pardiwala and Sandeep Mehta delivered the verdict while dismissing an appeal filed by the Commissioner of Service Tax, New Delhi against M/s Elegant Developers, a partnership firm based in Allahabad. The...

Supreme Court Dismisses Rs 244 Crore Service Tax Plea Against Bharti Airtel Over Employee Scheme

The Supreme Court has recently dismissed a nearly Rs 244 crore service tax appeal filed by the Commissioner of Central Goods and Service Tax, Gurugram, against telecom giant Bharti Airtel Ltd. The dispute concerned the company's Airtel Employees Services Scheme (AESS), which offered free or discounted telecom services to its employees.The appeal challenged a January 27, 2025 order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, which had set aside the entire tax...