𝗖𝗘𝗦𝗧𝗔𝗧 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗳𝗼𝗿 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲 𝗮𝗻𝗱 𝗟𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 𝗠𝗮𝗿𝗴𝗶𝗻 📢 The bench of CESTAT Delhi stated:

Corporate guarantees without consideration and margins retained for booking cargo space are not liable to service tax.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Pristine Logistics and Infra Projects Private Limited 𝗜𝘀𝘀𝘂𝗲: Liability of service tax on corporate guarantees and profit margins from cargo bookings.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: Pristine Logistics received a show cause notice for not paying service tax on corporate guarantees and margins from cargo bookings. The demand was set aside on appeal.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that corporate guarantees without consideration and margins retained from booking cargo space are not taxable services, citing previous cases like Edelweiss Financial Services Ltd and Tiger Logistics (India) Ltd.

𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 30 May 2024 𝗣𝗮𝗿𝘁𝗶𝗲𝘀: Commissioner of Central Goods, Service Tax and Central Excise, Delhi vs Pristine Logistics and Infra Projects Private Limited 𝗖𝗮𝘀𝗲 𝗡𝗼: ST/87936/2023-CU(DB)

📜 This ruling confirms that corporate guarantees without consideration and margins from cargo bookings are not taxable services. #CESTAT #ServiceTax #LegalUpdate #arr4nirc