Service Tax Weekly Flashback (01–07 February 2026) encapsulates the major developments under the Service Tax regime during the week, highlighting important judgments of the Supreme Court and various High Courts, key orders of the CESTAT, and significant clarifications, circulars, and departmental instructions impacting legacy service tax disputes.
This weekly roundup provides a concise yet comprehensive update on evolving legal interpretations, valuation and classification issues, exemptions, and transitional matters that continue to affect taxpayers and practitioners dealing with pre-GST service tax litigation.
Bombay High Court
Service Tax Not Leviable on Advocate’s Legal Services to Law Firm: Bombay HC
The Bombay High Court has ruled that service tax cannot be levied on an individual advocate for legal services rendered to a partnership firm of advocates, holding that such services are expressly exempt under statutory notifications issued under the Finance Act, 1994. The Court quashed the service tax demand, recovery notice, and the underlying show cause notice, concluding that the tax authorities had acted without jurisdiction.
Calcutta High Court
Logistics Firm Liable for Service Tax as ‘Clearing and Forwarding Agent’: Calcutta High Court
The Calcutta High Court has held that a logistics and services firm providing end-to-end handling of goods for large steel companies was liable to pay service tax as a “Clearing and Forwarding (C&F) Agent” under the Finance Act, 1994, while simultaneously quashing tax demands raised on certain ancillary activities such as bending, bundling, and stock verification of goods.
CESTAT
No Service Tax on Unpaid Commission to Overseas Agents for Export Sales: CESTAT
The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside and remanded a service tax demand of Rs. 14.81 lakh imposed on M/s Lifelong India Private Limited, holding that service tax liability cannot be fastened merely on book provisions for commission payable to overseas agents when no service is received and no consideration is paid.
Public Parking Projects Non-Commercial: CESTAT Allows Rs. 1.58 Crore Service Tax Refund to RIDCOR
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has allowed the appeal filed by Road Infrastructure Development Company of Rajasthan Limited (RIDCOR) and directed refund of Rs. 1.58 crore of service tax paid on construction of public parking facilities and a residential school for the Government of Rajasthan.
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