2 Cestat judgments

Cestat judgments

Transportation cost separately charged should not forms part of assessable value

Excise Duty - CESTAT held that transportation charges collected by way of issuing additional invoice cannot be included in the assessable value of goods for levying excise duty....

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Classification of service depends on essential character of service

Excise Duty - CESTAT held harvesting and transportation charges deducted were not to be considered as charges for independent supply. Hence, not liable for service tax. ...

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Credit of service tax cannot be denied on the ground of ‘no nexus with output services’

Excise Duty - In the instant case, the view of the Authority to reject the credit on the ground of ‘no nexus’ could have been done only by taking recourse to Rule 14 of CCR. In the present case, since the Authority has rejected the credit solely on the ground of ‘no nexus’ which legally does not sustain....

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Custom broker is not responsible for overseeing correctness of documents issued by Government Authorities

Excise Duty - CESTAT held that custom brokers are not responsible for overseeing correctness of documents provided by client issued by government authorities for verification of exporters as per Regulation....

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CESTAT: Demand of duty of Rs. 163 Crore based on assumptions is not permissible

Excise Duty - CESTAT held that the assessing authority has not found any undeclared machines in the manufacturing premises or factory of the assessee and duty has been demanded based on assumptions and presumption, which is not permissible under the scheme of compounded levy on the product manufactured by the assessee. Therefore, the appeals filed by t...

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E-Compendium of CESTAT Case Laws – Pro – Revenue

Excise Duty - This is the fourth year since the introduction of GST in July, 2017. Despite a sizeable liquidation of appeals under the Sabka Vishwas (Legacy Dispute Resolution) (SVLDR) Scheme, we still find more than 40,000 appeals of Central Excise and Service Tax pending at CESTAT and inflow of such appeals at the Honble Tribunal has not much dwindle...

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Govt approves creation of six new Benches of CESTAT

Excise Duty - The Union Cabinet today gave its approval for setting up six additional Benches of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), including three at the existing locations of New Delhi, Mumbai and Chennai and three new Benches at Chandigarh, Allahabad and Hyderabad. ...

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Tribunal directed JetLite to pay Rs 100 crore as a pre-deposit on a service tax dispute

Excise Duty - The Customs, Excise & Service Tax Appellate Tribunal has directed JetLite (formerly Sahara Airlines Ltd) to pay Rs 100 crore (Rs 1 billion) as a pre-deposit on a service tax dispute, pending final settlement.Of the amount, Rs 64 crore (Rs 640 million) is towards service tax arrears and the rest is penalty for non-payment. The amount in di...

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Can a CESTAT Member who has not completed probation can be relived from his duty without assigning any reason?

Excise Duty - RECENTLY the President of India was pleased to discharge Hon'ble member of the CESTAT Mr. PK Das, just a day before he was to complete his three year probation period. Can a Member of the Tribunal be sent home just like that? The answer, unfortunately is, `YES'....

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Shocking-95% Appeals By Deptt. Quashed By CESTAT – Bangalore

Excise Duty -  Believe it, 90 per cent of the appeals filed by the Customs, Central Excise and Service Tax Department of our nation against assessees, who had received a favourable order at the lower level, have been dismissed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Bangalore during the year 2008. Out [&h...

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Department cannot raise demand without examining reversal of Cenvat credit & calculating proportional credit

Sanofi India Limited Vs C.C.E. & S.T. (CESTAT Ahmadabad) - CESTAT held that, once assessee had reversed proportionate credit attributed to exempted goods, no demand of 10% of value of goods can be raised by Revenue Department....

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No need to rely on website & Wikipedia for meaning, when test reports of product by laboratories are available

Pradipkumar P Patel Vs C.C. (CESTAT Ahmedabad) - When the test reports were available on record, there was no need to go to the website and Wikipedia for the meaning of the product....

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Bar of Cenvat credit lapse not applies to conditional exemption – Rule 11(3)

Ruia Rayon Pvt Ltd. Vs C.C.E & S.T. (CESTAT Ahmedabad) - Rule 11(3) Cenvat Credit Rules 2004 Bar of credit lapsing applicable only when assessee availed absolute exemption & not on conditional one...

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Treating Advance Amount as Security Deposit – Invocation of extended period of limitation valid

Applied Solar Technologies (India) Pvt. Ltd. Vs Commissioner, Central Goods & Service Tax (Audit-II) (CESTAT Delhi) - There is no error in the finding recorded by the Commissioner in this regard, as indeed the appellant did try to evade payment of service tax by treating the amount as a security deposit when in fact it was clearly an advance, which fact was very specifically mentioned in the Agreement. The intentio...

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Section 114A penalty attracted only to person who is liable to pay custom duty or interest U/s. 28

Vinesh Naresh Chheda Vs Commissioner of Customs (Import-I) (CESTAT Mumbai) - Section 114A of Customs Act, 1962 ibid deals with imposition of mandatory penalty in certain cases. As per the Customs Act it is the importer who is to file the bill of entry to the proper officer u/s. 46 ibid while importing the goods and the assessment has to be made on that bill of entry and on s...

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Procedure for Physical Hearing of Appeals by CESTAT

Public Notice No. 1 of 2021 - (15/11/2021) - Representations have been received from the Bar Associations requesting for physical hearing of appeals. As there is improvement in the pandemic situation and the higher courts have partially shifted to physical mode of hearing, Hon'ble President directs that appeals may be heard physically on a req...

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Benches of Tribunal must strictly adhere to period of limitation prescribed by SC

F No. 01(05)/Circular/CESTAT/2021 - (26/07/2021) - F No. 01(05)/Circular/CESTAT/2021 Customs, Excise and Service Tax Appellate Tribunal West Block No. 2, R.K. Puram, New Delhi-110066 Dated: 26.07.2021 OFFICE MEMORANDUM It has come to notice that the Benches of the Tribunal have been adopting different standards in determining the period of limitatio...

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Procedure For E-Hearing of Appeals by CESTAT

Public Notice No. 2 of 2020 - (10/08/2020) - Representations have been received from the Bar Associations at Mumbai, Bangalore, Ahmedabad, Chandigarh and Hyderabad Benches of the Tribunal for extending the facility of e-hearing to appeals also on a request made by the counsel....

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Amendment in the CESTAT Procedure Rules, 1982

Notification No. 01/2020-Central Excise - (11/05/2020) - ery Memorandum of Appeal or Cross Objection shall set forth concisely .ruid under distinct heads, the Statement of Facts and Grounds of Appeal or Grounds of Cross Objection, as the case may be, consecutively numbered and typed in double space of the paper. They shall also contain a valid mobile numb...

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No sitting of benches of CESTAT this week, except urgent hearings, due to Corona Virus

NA - (13/03/2020) - The Ministry of Health and Family Welfare, Government of India has issued an Office Memorandum dated 5 March 2020 as advisory cautioning against mass gathering due to global pandemic Novel Coronavirus (COVID 19). The Honourable Supreme Court of India and the Honourable High Court of Delhi have also ...

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Recent Posts in "Cestat judgments"

Department cannot raise demand without examining reversal of Cenvat credit & calculating proportional credit

Sanofi India Limited Vs C.C.E. & S.T. (CESTAT Ahmadabad)

CESTAT held that, once assessee had reversed proportionate credit attributed to exempted goods, no demand of 10% of value of goods can be raised by Revenue Department....

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No need to rely on website & Wikipedia for meaning, when test reports of product by laboratories are available

Pradipkumar P Patel Vs C.C. (CESTAT Ahmedabad)

When the test reports were available on record, there was no need to go to the website and Wikipedia for the meaning of the product....

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Bar of Cenvat credit lapse not applies to conditional exemption – Rule 11(3)

Ruia Rayon Pvt Ltd. Vs C.C.E & S.T. (CESTAT Ahmedabad)

Rule 11(3) Cenvat Credit Rules 2004 Bar of credit lapsing applicable only when assessee availed absolute exemption & not on conditional one...

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Treating Advance Amount as Security Deposit – Invocation of extended period of limitation valid

Applied Solar Technologies (India) Pvt. Ltd. Vs Commissioner, Central Goods & Service Tax (Audit-II) (CESTAT Delhi)

There is no error in the finding recorded by the Commissioner in this regard, as indeed the appellant did try to evade payment of service tax by treating the amount as a security deposit when in fact it was clearly an advance, which fact was very specifically mentioned in the Agreement. The intention to evade payment of service tax by sup...

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Section 114A penalty attracted only to person who is liable to pay custom duty or interest U/s. 28

Vinesh Naresh Chheda Vs Commissioner of Customs (Import-I) (CESTAT Mumbai)

Section 114A of Customs Act, 1962 ibid deals with imposition of mandatory penalty in certain cases. As per the Customs Act it is the importer who is to file the bill of entry to the proper officer u/s. 46 ibid while importing the goods and the assessment has to be made on that bill of entry and on such assessment, the duty is levied...

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Demand for Cenvat credit cannot be raised based on bald SCN

Sun Pharmaceuticals Industries Limited Vs C.C.E. & S.T.-Vadodara-I (CESTAT Ahmedabad)

Without any single evidence of taking credit in SCN, the SCN is bald & proceedings flowing from said SCN liable to be quashed on this threshold point itself....

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Cenvat credit cannot be denied for use of prime quality materials for manufacture of final products

Shakambari Overseas Traders Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

There is no restriction in CENVAT Credit Rules that Appellants should not use the prime quality materials for the manufacture of final products, CENVAT credit cannot be denied...

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Redemption Fine cannot be demanded merely for issue of PSI certificate by Branch Office

ARS Steels & Alloy International Pvt. Ltd Vs Commissioner of Customs (CESTAT Chennai)

When the question is considered in the larger perspective, it is clear that there is no violation as alleged, more so because the PSI certificate issued by the Branch was subsequently ratified by the DGFT (as reflected in paragraph 25 of the Order-in-Original), which serves the purpose....

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Verizon India eligible for refund of Cenvat on Services to Verizon USA rendered as principal service provider

Verizon India Pvt. Limited Vs Commissioner of Service Tax (CESTAT Delhi)

Verizon India Pvt. Limited Vs Commissioner of Service Tax (CESTAT Delhi) The case of Revenue is that the location of service provider/appellant is in India and further in terms of Rule 9 of POPS, the service provided, being intermediary services, the location of the service provider under Rule 9 of POPS, shall be the place […]...

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CESTAT allows Cenvat Credit of Input Services used for Removal & Disposal of Fly Ash

Shyam Metalics & Energy Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

The issue required to be decided in the present appeal is as to whether the services obtained by the appellant for removal of coal fly ash from the captive power plant which is used for generation of power, which in turn, is captively consumed for manufacture of excisable goods, can be held to be an eligible cenvatable input service....

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