Gammon India Ltd Vs CST (CESTAT Mumbai) The Mumbai CESTAT, in Gammon India Ltd Vs. CST held that demand on Mobilization advance is not consistent with law and deserves to be set aside. Proviso to Section 2(31) of the CGST Act 2017 provides that deposits shall not be considered as payment made unless the supplier applies […]...

EIH Associated Hotels Ltd. Vs Commr. of Customs (E) (CESTAT Mumbai) After considering the submissions of both sides, we find that in the first round of litigation when the original authority confirmed the demand and confiscated the goods with a redemption fine of Rs.1,00,000/-, the appellant filed appeal before the Commissioner (Appeals) ...

The issue under consideration is whether denial of CENVAT credit availed by the appellant for construction/setting up of landfill is justified in law?...

Classic Marble Company Vs Commissioner of Customs (CESTAT Mumbai) In this case The learned adjudicating authority has rejected the declared value in respect of the subject Bills of Entry under Section 14(1) ibid read with Rule 12 ibid and re-determined the assessable value under Section 14(1) ibid read with Rule 3(1) ibid, holding that su...

The issue under consideration is whether the service tax is applicable to the collection of Octroi for entry of goods in the discharge of sovereign privilege?...

whether assessing officer is correct in rejecting the benefit of Basic Customs Duty exemption claimed by the appellant on the import of ‘GoPro HERO5 Black’ Action Camera?...

The issue under consideration is whether the commission or agency fee remitted to entities for handling vessels outside India are exempt from service tax as per Section 78 of Finance Act, 1994? ...

Services provided by NSDL to depository participants are aptly of 'provision and transfer of information and data processing', classifiable under (vii) of Banking and Financial Services as defined under Section 65(12) of Finance Act, 1994;...

The respondents are, or have been, 'surrogate' providers of `broadcasting' service in India, taxable under section 65(105)(zk) of Finance Act, 1994 since 2001 (and, more especially, with retrospective effect of the amendment incorporated in 2002), in the hands of `broadcasting agency' as defined in section 65(16) of Finance Act, 1994....

Sale of banking software to a bank was 'commercial exploitation' merely because the bank deployed the software in its normal business activities was not correct in the absence of facts that establish otherwise or of any evidence that such was the transaction between assessee and the customers, therefore, demanding service tax on the same ...

The issue under consideration is that whether Event Management Service, short term accommodation, storage and packing, Management, Maintenance & Repair, Business Auxiliary Service and Business Support Services these are considered as Input Service or not?...

The issue involved in the matter is whether the Cenvat credit of service tax paid on 'Tour Operator Service' used for pick-up and drop of employees of the Appellant to and fro Andheri and Kurla to their office premises is admissible as ‘input service’ under Rule 2(l) of Cenvat Credit Rules, 2004....

Appellants are engaged in the manufacture of various Computer Stationeries, LIC Forms, Bank Statement Forms as per the requirement of LIC, Banks & Govt department as per the requirements of LIC, Bank and Government department, falling under chapter sub heading 482040 of Central Excise Tariff Act, 1985 and paying duty accordingly....

The issues involved in this Appeal is whether GTA service is entitle as an input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004 even after 1.4.2008 on FOR sales i.e. delivery upto the factory gate of the customers, which, according to Revenue, was beyond the place of removal?...

NMC Industries Pvt Ltd Vs Commissioner of Service Tax (CESTAT Mumbai) We are unable to comprehend the resort to Railways Act, 1989 for a broader understanding of expression ‘railways’ in the absence of permissible referral in section 65(105)(zzzza) or (zzp), or, for that matter, anywhere in section 65, of Finance Act, 1994. In the abs...

‘Casino vessels’ could not be classified as ‘pleasure boats’ as the vessel was a supply vessel used for transport of persons and goods, the correct classification would be heading no. 8901 90 00 which covers' Other vessels for transport of the goods and other vessels for transport of both persons and goods' and not under heading N...

The issue to be decided is Whether the Appellant i.e. the service recipient could utilize Cenvat credit of Central Excise duty paid on inputs, for payment of service tax on services viz.Management, Maintenance or Repair, Copyright and Advertising, received by them from abroad, under reverse charge mechanism?...

The issue involved is whether the appellants are liable to pay Service Tax on the rent received by them for allowing the harvesting contractors to use the Appellant’s bullock carts with tyres without any bullocks or driver for transporting the sugarcane to the sugar factories?...

The purpose of compounding of offences against payment of compounding amount is to prevent litigation and encourage early settlement of dispute. In the guidelines issued vide Circular No. 15/10/2009 no prohibition has been imposed against deciding the application for compounding...

Milk crumb was marketable and hence assessee-cadbury was liable to pay excise duty for clearing goods without payment of duty as revenue neutrality could never be ground for not demanding the duty on the excisable goods in the form and manner they were being cleared by assessee. ...

Anand I Power Ltd. Vs Commissioner of Central GST (CESTAT Mumbai) Renting of immovable property services taken to be used as branch office for procurement of orders, delivery of goods, repair and maintenance service as well as for marketing purpose are admissible credits for both pre and post amendment period covering the entire disputed ...

Kailash Bahiru Jadhav Vs Commissioner of Customs (Export) (CESTAT Mumbai) Customs House Agents Licensing Regulation, 2004 which is a comprehensive self-contained scheme for licensing, operations, monitoring and regulation, is a standalone provision. Indeed it is a special provision in the Customs Act, 1962 by which, a whole range of activ...

Lenovo (India) Pvt. Ltd. Vs. Commissioner of Customs (Import)- (CESTAT Mumbai) Computer having integrated CPU, VDU, but without physical keyboard (having virtual keyboard), and weighing less than 10 kg is classifiable as portable PC under TI 84713010 and not under TI 84715000 of the Customs Tariff Act, 1975. The Tribunal found no literatu...

Kopran Ltd. Vs Commissioner of Customs (E) (CESTAT Mumbai) Rejecting the plea that bond/LUT executed by assessee-importer did not cover the anti-dumping duty leviable on material imported under Advance Authorisation, The Tribunal observed that the bond executed did not make any distinction between the duties leviable. Larger Bench order i...

CESTAT Mumbai has held that Cenvat credit can be availed on foreign warehouse services received by a company in India for which service tax was paid under reverse charge mechanism. It was held that denial of credit would amount to double taxation....

The appellant does not offer ‘convention services’ but gets events organised by professionals and, by collecting fees which are transmitted to such organisers, enables its members to participate in them. There is no allegation that any part of the fees charged by convention organisers is retained by the appellant. Thus, the activity ...

Moneygram India P. Ltd. Vs Assistant Commissioner (CESTAT Mumbai) Issue under consideration is that whether the Appellants are entitled to avail CENVAT Credit on the input service viz. event management service? The learned Advocate for the Appellant submits that events are organized by the Appellant company for promoting their brand value...

Mumbai Bench of CESTAT has held that there is no estoppel in raising classification dispute in subsequent import of a product and that in the absence of appropriate classification there was nothing binding to treat previous classification as the sole option....

For the period from 10-2-2006, the definition of the term ‘export’ under the Customs Act is not consistent with the definition of the term ‘export’ under the SEZ Act. However, the definition of the term ‘export’ under the SEZ Act shall prevail over the definition of term ‘export’ under the Customs Act. Therefore, supplies ...

CESTAT Mumbai has allowed benefit of Notification No. 21/2002-Cus. (Sl. No. 230) to hydraulically operated self-propelled piling rig for construction of road in a case where it was alleged that the goods were involved in activities other than those specified....

CESTAT Mumbai has held that demurrage was part of handling of import and export shipments of the assessee and therefore Cenvat credit of tax paid on such demurrage charges would be available. The demurrage charges were paid by the C&F service provider on behalf of the assessee and billed to him as out of pocket expenses. The Tribunal also...

t is apparently clear that appellant was providing cleaning service through manpower engaged under its control and supervision and not supplied manpower to the service receiver to undertake cleaning service under the control and supervision of the service receiver and and the same cannot be treated as Manpower, recruitment or Supply Servi...

Aviat Health Care Pvt. Ltd. Vs Commissioner of CGST (CESTAT Mumbai) It is worthwhile to mention here that ‘trading’ is a pure sale which is subjected to the taxable jurisdiction of the provisional Government and no Service Tax liability accrues from pure sale un-associated with any service component as has been elaborately dealt by th...

Commissioner of Customs Vs Reliance JioInfocom Ltd (CESTAT Mumbai) In the present case, the manufacturer of Antenna as well as the chartered engineer’s certificate, in clear terms clarified that the Antenna in question transmits and receives only signals and not performing any other function like conversion or regeneration of voice,...

Penalty under Section 76 of the Finance Act, 1994 can be imposed for mere default/delay in payment of Service Tax in addition to the penalty under Section 78 and these penalties are mutually exclusive and even if offences are committed in the course of same transaction or arise out of same act, penalty is imposable for ingredients of both...

CESTAT Mumbai held that merely because certain processes are carried out on the raw bees wax to make the product in a presentable and better marketable form, without significant change in the character and use between the raw bees wax and the cleaned/purified bees wax, the processes undertaken cannot result in manufacture....

M/s. Mediacom Media India Pvt. Ltd. Vs C.C.G.S.T. (CESTAT Mumbai) Observing that definition of input service was very wide and that the only condition precedent was that it should be the activity relating to business, CESTAT Mumbai has allowed Cenvat credit on outdoor catering services and rent-a-cab services for the period 2007-2010. Rul...

M/s. Voith Turbo Pvt. Ltd. Vs Commissioner of Customs (CESTAT Mumbai) CESTAT Explains when Substantial mark-up in supply of imported goods to customers when not indicates undervaluation of imports Considering the nature of business of the appellant/importer and that the overheads involved in the business activity were bound to influence t...

CESTAT Mumbai has allowed refund of Cenvat credit on export of Scientific & Technical Consultancy services. Considering the pricing method, it held that Rule 3 and not Rule 4 of the Place of Provision of Services Rules, 2012 was applicable....

M/s D.A. Stuart India Pvt Ltd Vs C.C.G.S.T (CESTAT Mumbai) In the absence of a statutory provision which prescribes that registration is mandatory, the claim of the Appellant cannot be rejected and both the authorities below have committed an error in rejecting the same. In a very recent decision of the Tribunal in the matter of [&hellip...

Swachh Bharat Cess paid on input services has to be available as Cenvat Credit and the same can be discharged by utilising Cenvat Credit and assessee was therefore entitled for the refund of it....

Muktabai Govind Pawar Vs Commissioner of Custom (CESTAT Mumbai) The Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ) Mumbai bench has held that the Commissioner (Appeals), has no power to condone delay beyond three months under the Finance Act, 1994. The assessee was aggrieved with the order of the Commissioner (Appeals) who...

Arguably, service tax payment is necessary when the four things are satisfied;(i) There is a service(ii) There is a service provider(iii) There is a service recipient(iv) There is a consideration for such service paid by the recipient of service to the provider of the service....

The assessee should have been put to Notice and a reasonable opportunity should have been given for representing their case. While the same was not done, jumping straight way to coercive measures was certainly uncalled for. Therefore, Interest collected being without authority of Law needs to be refunded along with applicable interest....

The principle of mutuality is based on common law principles. It rests on the theory that a person cannot make a profit from himself/herself. An amount received from oneself cannot be regarded as income so as to be liable to tax. However, litigation often arises on its application to facts of cases. ...

Casa Grande Co-Operative Housing Vs Commissioner of CGST (CESTAT Mumbai) When any provision in the statute has been held to be unconstitutional, refund of tax under such statute will be outside the scope and purview of such enactment and under such circumstances, refund can be claimed by way of a suit or by way of a […]...

CESTAT held that service rendered by ‘lead generator’ is not that of an ‘insurance agent’ and, consequently, the commission paid by respondent to such entities are not liable to be included in the assessable value of the respondent for discharge of tax liability under Finance Act, 1994....

Medisray Laboratories P. Ltd. Vs CCGST (CESTAT Mumbai) Coming to the statutory audit procedure, the purpose of audit, as available in the Manual published by the Institute of Chartered Accountants of India in respect of EA audit and CERA audit under Chapter 17 is that the idea behind such conduct of verification is to reasonably […...

BCCI Vs Commissioner of Service Tax (CESTAT Mumbai) it is undisputedly admitted that appellants have provided the program feed to the M/s MSM Singapore at the venue of match which is in India and not outside. The programme feed as provided by the appellant, is encrypted and then uplinked by the said M/s MSM/ WSG […]...

If any input is contained in waste by-product or goods the cenvat credit shall not be denied. If rule 6(3) is made applicable in these goods this clarification will stand redundant....

Essel Propack Ltd. Vs Commissioner of CGST, Bhiwandi (CESTAT Mumbai) To pin point the dispute, it is now to be looked into as to if CSR can be considered as input service and be included within the  definition of “activities relating to business” and if in so doing, a company’s image before corporate world is […]...

Confiscation of freely importable air gun of 0.177 by shooter on the ground that he was not a renowned shooter is irregular as the same is not in conformity with rules prescribed for such imports....

Arihant Udyog Vs Arihant Udyog (CESTAT Mumbai) As per the activity the appellant is only carrying out affixation of brand on the tools i.e. spanner by embossing/ engraving. This process alone does not amount to manufacture. As regards other processes which are carried out by the job workers, it prima facie appears that the independent [&h...

We are of the view that the ULIP surrender charges are not part of taxable service of management of funds. Rather it is in the nature of penalty or liquidated damages which is not a service and hence cannot be made liable for tax during the period involved . ...

Brief facts of the case are that the Appellant M/s S.S. Engineers are engaged in the sale of own manufactured goods and also engaged in trading of bought out items which are used in erection, installation and commissioning of Sugar Plant and other goods falling under chapter 84 of the First schedule to the Central Excise Tariff Act, 1985....

M/s. Venus Wire Industries Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Mumbai) In this case, the U.S. Department of Commerce and European Commission issued notices to the assessee for levying anti-dumping duty on the goods exported by it. For the purpose of effective participation before the anti-dumping authorit...

Learned AR argued that Commissioner (Appeals) has wrongly interpreted Notification No. 21/2002 by construing that Mumbai Metropolitan Regional Development Authority (MMRDA) is a road construction corporation under the control of the State Government....

Kagal Nagar Parishad Vs Commissioner of Central Excise (CESTAT Mumbai) Revenue sought to tax the one time premium deposit, which is not refundable under the head of renting of immovable property service considering the same as rent. We find that there is a separate charge for the rent, which alone is taxable, the onetime premium […...

Commissioner of Central Excise Vs Consistent Software Technologies (I) Pvt. Ltd. (CESTAT Mumbai) In the present case the respondent is engaged in imparting the training and coaching in various foreign languages i.e. French, German, Japanese, Spanish etc. which they claimed as a vocational training and covered under Notification No.9/2003-...

Penalty under Rule 26 can be imposed only on the natural individual person and not on the artificial person or company because the goods is handled by natural living person and not by an artificial entity. ...

Revenue has demanded the Service Tax on the renting of trucks under the head of Supply of Tangible Goods Service. As per the facts of the case which is not in dispute, we note that the appellant have given the trucks to the lessees on monthly rental charges. The appellant did not provide any facility such as driver, repair and maintenance...

The input service credit on insurance is denied on the ground that these insurance has been taken for the family members of the employees which is in nature of perquisites. I do agree with the finding of the lower appellate authority as the insurance of family members of the employees has no concern with the business of manufacturing of t...

Kansai Nerolac Paints Ltd. Vs Commissioner of GST, Mumbai Central (CESTAT Mumbai) In this case  demand was raised from the input service distributor who has distributed the service credit to their respective factory on the ground that the input service viz. air travel agent service, is not admissible as the service related to business ac...

It has been argued that they are using service of M/s Dialogue Corporation, USA for the purpose of data storage. It has been argued that the said service provider does not provide online services and there is no online service provider. In absence of online database access, no Service Tax can be demanded under the head of Online Database ...

Shri S.S. Gupta, Learned Chartered Accountant, appeared on behalf of the appellant submits that the construction of hospital building does not fall under the ‘commercial or industrial construction service’ for the reason that the hospital building is not used for commerce or industry as the hospital in the present case is run by a cha...

These appeals are directed against Order-in-original passed by the Commissioner of Customs, New Custom House, whereby Ld. Commissioner imposed penalty of Rs. 2 lacs under Section 114(i) of Customs Act, 1962 on CHA, M/s. Daroowala Brothers and Company and also imposed penalty of Rs. 1.5 lacs on Shri. Pervez Irani....

Prospectus is only for the purpose of screening of students by way of Admission Screening Examination and is not a part of the services. The student only by filling of prospectus does not become entitled to get coaching from the Appellant. ...

Fees collected by the police department is in the nature of fee prescribed for performing statutory function, which has been deposited into the Govt. treasury. In the light of the C.B.E. & C. 's circular also, there can be no levy of service tax on such activities carried out by the police department....

The Brand promotion fee was not taxable until Negative list came into effect from 01.07.2010 and hence there cannot be any liability upon the Respondent till that period. ...

They provide the SMS Aggregator services to M/s Facebook under an agreement for which the bills were raised to M/s Facebook, Ireland and the amount was received in convertible foreign currency. They filed four refund applications towards refund of unutilized cenvat credit of input services used for export of services in terms of Rule 5 of...

Larsen & Toubro Ltd. Vs CCE (CESTAT Mumbai) This is an appeal has been filed by the appellants against denial of credit of service tax in respect of services provided to their job workers while doing their job work. 2. Ld. Counsel for the appellants argued that they were operating in Rule 4(5) of Cenvat […]...

There is no provision in Service Tax Rules for inclu­sion of value of scrap as an additional consideration; only the amounts received towards taxable services are leviable to service tax. ...

It was not even alleged that they collected a amount as ‘duty' but not paid it to the exchequer. None of situation specified in section 11D is applicable in the present case. In fact, in such a situation, there should not have any grievance to the parties since the appellants had paid the amount whatever they collected and paid it compl...

We have also observed that in the earlier proceedings in this case the matter was heard by the division bench of this Tribunal. After hearing of the matter, a difference of opinion arose between the Members and the matter was referred to the third member of this Tribunal and thereafter a majority decision has been […]...

The fact of the case is that the respondent had cleared their finished goods to their customer by valuing the goods on the basis of purchase order placed by them by their customers. However, consequent upon price escalation, their customers amended the purchase order and revised the price of the goods on the higher side with retrospective...

The definition of business auxiliary service may not cover the transaction in this case, as the main appellant is not promoting or marketing of services provided by PFL as there is no service which has been provided by PFL in the case in hand....

It is held that although contract, undoubtedly, designates the consideration in Indian rupees so that the service provider is not put to loss on account of currency fluctuations and merely because Service provider designates the consideration in Indian rupees, his Service Tax Exemption on Exports cannot be denied, ...

In this case in the show-cause notice the allegation is that the appellant availed input service credit on construction of shopping complex outside the factory premises whereas in the impugned order, the demand has been confirmed on the ground that the service provided and credit availed was not either directly or indirectly in relation t...

The appellant were selling the sim cards to their franchisee and was paying sales tax to the State and activating the sim cards in the hands of subscribers at a valuable consideration and paying sales tax on the activation charges....

CESTAT, Mumbai held that reimbursement of the cost of obtaining and employing resources/certain expenses incurred by the Appellant on the behalf of the Group Companies cannot be regarded as consideration flowing to the Appellant towards the taxable service provided by the Appellant rather the receipts are towards the reimbursements of the...

The appellants are manufacturer of excisable goods and were selling the products to various distributors and dealers. The appellants had agreement with some of the dealers and distributors in which they were sharing the cost of advertisement on optional basis....

In the present case admittedly the sale has not taken place from the factory gate but goods were sold from the depot and at the time of sale from the depot the price charged was the price minus quantity discount, therefore, the price excluding the quantity discount is an amount payable at the time of sale or at any other time. ...

When the admissibility of Cenvat credit is not disputed on legal grounds viz eligibility and duty payment document, then credit cannot be denied merely on technical lapses....

The CESTAT Mumbai in the case of M/s Aarti Industries Ltd. vs. CCEx, Thane held that wrong availment of Cenvat credit cannot be said to a willful attempt of suppression with the intent to evade the payment of duty when the matter has been interpreted in different manner by different tribunals and courts....

The CESTAT Mumbai in the case of Arbes Tools Pvt. Ltd. vs. CCExheld that as per Rule 11(1) of the Cenvat Credit Rules, 2004 read with Notification 23/2004-CE, the amount of credit earned by the manufacturer under Cenvat Credit Rules, 2002, which existed prior to 10.9.2004, can be utilized by them as per transitional rule 11 of the new Cen...

In the case of J.P. Morgan Services India Private Ltd. Vs. Commissioner of Central Excise(Service Tax), Mumbai, it was held that the benefit of export rebate cannot be denied even if the services are exported prior to the date when Export of Service Rules, 2005 are brought into the statute....

Input services not only cover services of falling in the substantial part of Rule 2(l) of the Cenvat Credit Rules, 2004 but also cover services which are covered under the inclusive part as the same having some sort of nexus with the business activity of the assesses....

The appellants are Export Oriented Unit (EOU). In 2003 they cleared the certain consignments of fabrics for purpose of export, which got damaged due to rain and had to be brought back to the factory. ...

It was held that that unless cost of advertising is recovered from the dealers mandatorily as a condition of dealership, the same cannot be added to the assessable value....

In Century Spg. & Mfg. Co. Ltd. - 1997 (94) E.L.T. 16, the Supreme Court held that service and maintenance charges in respect of tonners/cylinders which are durable and returnable cannot be added to the assessable value of the chlorine manufactured by the assesses and supplied to the customers in tonners/cylinders...

It was held that the supplies to SEZ should be treated as exports and no reversal of CENVAT is required to be done under Rule 6 as amended with effect from 10.09.2004....

It was held that when goods are cleared to the customers at a discount, the assessable value for the purpose of assessment should be the value arrived at after giving the quantity discount and not the value at which the goods were cleared from factory to depot....

Services of commission agent abroad is input services as the commission agent procured the orders for the appellant and thereafter the appellant manufactured the goods. Therefore, CENVAT credit of service tax paid on such services is available....

It was held that CENVAT credit of inputs and input services used for production of electricity captively consumed is allowed. Further no reversal of CENVAT credit is required under Rule 6 of CENVAT credit rules,2004....

It was held that the rate of duty applicable on the differential assessable value recovered at the depot premises attributable to the products manufactured would be the rate applicable to the said goods when they were cleared from the factory premises....

The CESTAT Mumbai held that when there is no allegation regarding fraud, willful misstatement, suppression of fact which are required as per Rule 15(2) read with Section 11AC of the Central Excise Act , then imposition of penalty by the department is wrong and illegal....

The CESTAT Mumbai in the case of Precision Metals vs. CCEx held that as per the special procedure prescribed in Notification no. 214/86 job worker can get duty exemption in respect of job worked goods cleared to principal manufacturer but this exemption donot make the goods as exempt from duty because ultimately duty got paid at the princ...

It was held that it is a common knowledge that any insurance company is required to have chairs and tables to render services to their clients. The said tables and chairs are used for rendering services of general insurance, accordingly CENVAT credit availed on such furniture & fittings is allowed....

In the case of Bank of Baroda VS Commissioner of Service Tax it was held that the service of transmission and exchange of financial messages falls under the category of Banking and Other Financial Services and service tax should be levied accordingly...