The case involved the recovery of service tax in relation to ...

Recovery of service tax: Interest-bearing deposits not taxable. Charges like fuel surcharge correctly paid. Cenvat credits allowed. Time-barred demand for extended period.

Case Laws     Service Tax

August 8, 2024

The case involved the recovery of service tax in relation to various services, including transportation of goods through pipelines, erection, commissioning, and installation services. The appellate tribunal held that interest-bearing deposits cannot be considered as part of the taxable service and thus not liable for service tax. The tribunal also ruled that certain charges, such as fuel surcharge and minimum demand charge, were correctly paid and required no further action. Additionally, amounts received against statutory provisions and refundable security deposits were deemed non-taxable. The tribunal allowed certain Cenvat credits and determined that the demand for the extended period was time-barred. The decision settled the demands under different heads, confirming some while setting aside others.

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