CESTAT Bangalore on Kalyan Jewellers Cost Sharing Manpower and the Limits of Extended Limitation

CESTAT Bangalore set aside the service tax demand against Kalyan Jewellers concerning manpower, works contract and advertisement expenses. While the Tribunal accepted the manpower demand on merits by applying the Supreme Court ruling in Northern Operating Systems, it held that the extended period was unavailable. It also found no evidence of works contract services or taxable business promotion in the sharing of common advertisement costs.