Indian Railway Catering and Tourism Corporation (IRCTC) has received favorable orders from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi. The tribunal dismissed appeals related to service tax demands. This decision pertains to transactions based on revenue sharing, where the demand for service tax was deemed unsustainable. The original demands totaled ₹6.78 Cr across three cases.
Favorable Orders Received
IRCTC has secured a positive outcome regarding appeals filed with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in New Delhi. These appeals challenged orders previously issued by the Commissioner of Service Tax.
Details of the Tribunal’s Decision
The CESTAT Principal Bench in New Delhi has ruled in favor of IRCTC, dismissing the appeals. The original orders, referenced as FO/ST/A/51339-51341/2025-ST{DB} and dated 2025-09-22, have been set aside. The tribunal found that the transactions in question were based on revenue sharing, and the demand for service tax was not justified.
Financial Impact
The appeals that were dismissed involved a total demand of ₹6.78 Cr. This amount includes ₹3.90 Cr, ₹2.84 Cr, and ₹4.45 Lac across the three related cases. The dismissal of these appeals means IRCTC is no longer liable for these amounts. The receipt date of the direction was 08.10.2025, acknowledged on 10.10.2025.
Source: BSE
