CESTAT Sets Aside Service Tax Demand Because Extended Limitation Could Not Be Invoked
CESTAT held that rent paid for walls used to display advertisements forms an intrinsic component of advertising services and must be included in the taxable value. The Tribunal rejected the claim that the advertiser acted as a pure agent. However, the value of printed flexes sold separately was excluded from service tax valuation.
CESTAT Chandigarh held that the manufacturer and marketing company could not be treated as related persons under the Central Excise Act. As a result, the valuation-based excise demands and penalties were set aside.
CESTAT Chandigarh held that the manufacturer and marketing company could not be treated as related persons under the Central Excise Act. As a result, the excise duty demand based on related-party valuation was set aside.
The Tribunal followed its own earlier rulings in the appellant’s cases and held that the dispute was no longer open to reconsideration. The impugned order was set aside accordingly.
CESTAT Chandigarh held that various disputed services qualified as input services under Rule 2(l) of the Cenvat Credit Rules, 2004. The Tribunal ruled that services having a direct or indirect connection with manufacturing were eligible for Cenvat credit.
Tribunal held that capital goods do not lose eligibility for Cenvat credit after becoming part of an immovable plant fixed to earth. It ruled that admissibility depends on compliance with Cenvat Credit Rules, not on immovability of final structure.
CESTAT held that hiring dredgers under bareboat charter agreements amounts to transfer of right to use goods and therefore cannot be taxed as supply of tangible goods service. The Tribunal quashed the entire service tax demand raised on reverse charge basis.
CESTAT Chandigarh held that statements relied upon against assessees cannot be used without following the mandatory procedure under Section 9D of the Central Excise Act. The matters were remanded after finding violation of principles of natural justice.
CESTAT Chandigarh held that seizure of imported ‘Roasted Areca Nuts’ on the basis of contradictory CRCL reports is not justifiable since report failed to account for low moisture levels. Accordingly, appeal is allowed and detained goods are directed to be released.
