CESTAT Kolkata held that Customs authorities cannot enhance declared transaction value without first following the mandatory two-step verification process under Rule 12 of the Customs Valuation Rules, 2007. The Tribunal ruled that the Department failed to establish valid grounds for rejecting the declared value.
The tribunal held that penalties cannot be imposed without direct evidence connecting the appellant to alleged overvalued exports. Mere suspicion and assumptions were found insufficient.
The Tribunal held that the margin between purchase and sale of vehicles is trading profit, not commission. Service Tax demand on such margin was therefore unsustainable.
The Tribunal held that no documentary evidence connected the Customs Broker to the alleged fraudulent exports. Revocation and penalty were quashed for want of proof.
The case examined whether authorities could revoke a G-card under existing regulations. The Tribunal held that no such power exists and ordered restoration of the G-card.
Composite contracts involving supply of materials could not be taxed under construction or other service categories and only the service portion was liable to tax.
The Tribunal found that the show cause notice did not identify the relevant provision under Business Auxiliary Services. It held that absence of specific legal basis renders the demand unsustainable.
CESTAT Kolkata held that the charge of clandestine removal of goods cannot be proved on the basis of private records recovered during the course of investigation in the absence of any corroborative evidence in support. Accordingly, order set aside and appeal is allowed.
The Tribunal ruled that the Department failed to prove that goods classified as trading were actually manufactured by the assessee. In absence of proper investigation, excise demand and penalties were held unsustainable.
The Tribunal ruled that coal extraction and processing constitute manufacture, not mining services, making service tax demand unsustainable and reinforcing mutual exclusivity of tax levies.
