CESTAT Delhi held that imposition of service tax on composite works contract prior to 1st July 2007 i.e. prior to introduction of works contract service is unjustified and untenable in law.
CESTAT Delhi held that Cenvat Credit in respect of capital goods parts/spares/components received in the factory of the manufacturer and used in manufacture of dutiable final product is duly eligible.
A ruling from the CESTAT Chennai holds that the manufacture of non-marketable sugar syrup is not subject to excise duty, setting a new precedent in tax law.
CESTAT Mumbai held that waste or rubbish, which is thrown up in the course of manufacture, cannot be said to be a produce of manufacture and cannot be said to be exigible to excise duty. Hence, sale of Ferric Oxide which emerged through chemical reaction of Waste Pickle Liquor is not liable to any duty.
CESTAT Kolkata held that there was no proposal to demand service tax under ‘Cargo Handling Service’ in the Notice, however, in the impugned order the adjudicating authority classified the services under ‘Cargo Handling Service’. Hence, adjudicating authority has travelled beyond the scope of the Notice, which is legally not sustainable.
An insightful analysis of the CESTAT Ahmedabad’s ruling in Magnam Netlink Pvt. Ltd. Vs C.C.E. & S.T case, emphasizing the legality of cenvat credit reversal on exempted services like “Trading”.
The case at hand pertains to the valuation of Lead Acid Batteries and the determination of whether these should be valued under Section 4 or Section 4A of the Central Excise Act, 1944. The core question revolves around the charging status of the batteries and where the charging occurs.
CESTAT Chennai held that the licence fee is includible in transaction value only when licence fee is paid as condition of sale. Accordingly, licence fee cannot be included to the transaction value when the same is not a condition of sale.
CESTAT Delhi held that the service tax is not applicable to the services provided in the State of J&K irrespective of the service provider being from the said State or otherwise. Accordingly, service tax is not leviable on Consulting Engineering Services rendered to the clients for construction of road in the State of J&K.
CESTAT Chennai held that refund claim of Education Cess (EC) and Secondary and Higher Education Cess (SHEC) on Oil Industry Development Cess (OID Cess) u/s 11B of the Central Excise Act, 1944 duly available as proved that burden of OID cess is not passed on to the buyer.
