No Power Lies at the Behest of CBEC to Modify the Scope of Exemption Notification issued by the Central Government

Last updated: 24 November 2022
Quick Summary
The CESTAT has ruled that the Central Board of Excise and Customs (CBEC) cannot alter the scope of exemption notifications issued by the Central Government. In this case, a coaching institute was denied service tax exemption on study materials. The CBEC's circular had restricted the exemption to standard textbooks with an MRP, which the Tribunal found to be an unauthorised modification of the original exemption notification.

Court :
CESTAT, New Delhi Bench

Brief :
The CESTAT, therefore, held that the CBEC was not given authority under Section 93 of the Finance Act, hence it is not permitted to provide exemptions or alter those already granted by the Central Government. As a result, the CBEC's circular cannot change the parameters of the exemption notification.

Citation :
SERVICE TAX APPEAL NO. 50233 OF 2016

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