𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗟𝗶𝗰𝗲𝗻𝘀𝗲 𝗙𝗲𝗲 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "License fees paid to Indian Railways are not taxable as ‘support services’ since they are not quid pro quo for any support. Service tax cannot be demanded on license fees."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Ambuj Hotels & Real Estates Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Whether the license fee paid by the appellant to Indian Railways is liable to service tax under the category of ‘support services’? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant paid license fees to Indian Railways, allegedly as consideration for infrastructural, operational, and marketing support. Service tax was demanded under reverse charge for July 2013 to June 2017.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that license fees linked to sales turnover are not quid pro quo for support services and are instead for catering authorization. As clarified by the CBIC Circular, granting licenses became taxable only after 01.04.2016. The service tax demand, interest, and penalties were set aside, and the appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Ambuj Hotels & Real Estates Pvt. Ltd. vs. Director General of GST Intelligence 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 51712 OF 2022 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 03 April 2023 📜 This ruling establishes that license fees linked to sales turnover, without quid pro quo for support services, are not subject to service tax before 01.04.2016.