LatestGoods & Service Tax (GST) 16 August 2026
Service Tax Demand Limited
The CESTAT Delhi has ruled that service tax demand cannot go beyond the show-cause notice, introducing a separate statutory mechanism through the works contract service to exclude the value of transfer of property in goods, this decision has implications for businesses operating under the goods and service tax regime
A recent ruling by the *CESTAT Delhi* has clarified that service tax demand cannot exceed the amount specified in the show-cause notice.
The decision introduces a separate statutory mechanism through the *works contract service* to exclude the value of transfer of property in goods.
- Key points of the ruling include:
- Introduction of a separate statutory mechanism
- Exclusion of the value of transfer of property in goods
- Implications for businesses under the goods and service tax regime
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