The Tribunal held that services of commission agents fall within the scope of “sales promotion” under Rule 2(l) of the Cenvat Credit Rules. As a result, the demand denying Cenvat credit on sales commission services was set aside.
CESTAT Kolkata held that shortages of raw materials and finished goods cannot be established through mere eye estimation. The Tribunal consequently quashed excise demands, interest, and penalties based on alleged stock shortages.
The dispute concerned whether coal transportation between mines and industrial facilities could be taxed as mining service. CESTAT held that the activity was transportation by road and, in the absence of consignment notes, fell under the Negative List and was not liable to service tax.
CESTAT Kolkata held that Cenvat credit on Service Tax paid for outward freight and insurance was admissible where goods were delivered at the buyer’s premises and ownership passed there. The demand was set aside on merits and limitation.
CESTAT Kolkata held that Indian currency cannot be confiscated under Section 121 of Customs Act without clear evidence connecting it to smuggled goods. Tribunal ruled that investigative statements alone are insufficient to justify seizure of cash as sale proceeds of smuggled gold.
CESTAT ruled that the Department failed to consider ST-3 returns and service tax already discharged by the assessee. The Tribunal held that duplicate tax demands arising from erroneous calculations could not survive.
CESTAT Kolkata held that granules cleared to job workers for conversion into PPCP containers could not be treated as traded goods. The Tribunal ruled that reversal of credit under Rule 3(5) had been properly carried out.
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.
