CESTAT Delhi allows interest on auction sale proceeds from date of receipt by Customs Department, till the date of disbursal, in Oriental Trimex Limited vs Commissioner of Customs (Import) case.
CESTAT Delhi in case of Quality Builders & Contractor vs Commissioner of Central Excise, set a new precedent for service tax refund claims.
In the case of Oriental Trimex Limited Vs Commissioner of Customs (Import), CESTAT Delhi allowed interest on auction sale proceeds from the date of receipt of the amount by the Customs Department until the date of disbursal. The CESTAT held that the Revenue cannot adjust the redemption fine against the sale proceeds since the goods were not available for redemption. The appellant was entitled to the sale proceeds, reduced only by the amount of penalty.
CESTAT Delhi held that demand unsustainable as difference between value of goods shown in ER-1 returns and balance sheet duly explained with sufficient evidence.
CESTAT ruled that appellant is entitled to offset underpaid service tax against excess tax paid in subsequent months/quarters, in accordance with Rule 6 (4A) of Service Tax Rules, 1994.
CESTAT Delhi held that confirmation of demand without identifying the common inputs used for both taxable as well as exempted services is unsustainable and liable to be quashed.
CESTAT Delhi held that demanding the duty drawback unsustained as payment for goods exported is duly supported by BRC and re-certified after verification by the Bank. Further, revenue has not brought on record any evidence relating to diversion of goods or return of any remittance.
CESTAT Delhi held that the extended period of limitation could have been invoked only if there was suppression of facts with intent to evade payment of service tax.
CESTAT Delhi held that denial of CENVAT Credit due to procedural irregularities/ lapses is unsustainable in law. Substantive benefit cannot be denied due to procedural irregularities/ lapses.
CESTAT Delhi held that as appellant failed to produce document proving discharge of customs duty liability, it can easily be concluded that gold so procured has passed the customs area in concealed manner and accordingly the same is smuggled goods.
