Cestat judgments

Top 15 Case Laws related to GST for October 2020

Excise Duty - 1. Supply of goods and supply of service made form different registration of the same taxpayer is neither a works contract nor composite supply? Maharashtra Appellate Authority for Advance Ruling in the case of Vertiv Energy Pvt Ltd has ruled when the goods are supplied from one registration and the installation of such goods has [&hellip...

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Who is Service Recipient – Exporter’s Bank or Exporter himself

Excise Duty - Service tax was first introduced in India in 1994 and was only levied on 3 services. Gradually, this net kept on widening and more and more services were added to the list of taxable services. In 2012, India moved from charging Service tax on specified services i.e. positive list regime to all services except for […]...

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Tribunal Rules, 2020: Reinforcement of executive dominance

Excise Duty - 1. Introduction The present paper aims to analyse the Tribunal, Appellate Tribunal, and other Authorities (Qualifications, Experience, and other Conditions of Service of Members) Rules, 2020 which were passed by the Ministry of Finance. The analysis will be primarily done by looking at how the rules have responded to Supreme Court Decisio...

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Can CESTAT condone delay in filing Appeal before Commissioner (Appeals) beyond time permitted under statute

Excise Duty - Can CESTAT condone delay for filing of Appeal before Commissioner (Appeals) beyond permissible time limit prescribed under the statute? There are plethoras of cases where appellant was failed to file an appeal before Commissioner (Appeals) within the statutory time limit prescribed in the Act due to various reasons. These reasons can be d...

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CESTAT adopts new appellate procedure for online filing & hearing

Excise Duty - We are all aware that the entire world is reeling under severe pandemic, COVID 2019 or Corona virus and India too has been badly affected causing social disruption, economic shut down and health concerns. The economy is at a virtual standstill and entire nation is under lockdown since 25th March, 2020 resulting in shutdown of […]...

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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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CENVAT Credit eligible on Sales Commission

Federal Mogul TRP (India) Ltd Vs Commissioner of Central Tax (CESTAT Bangalore) - It has been consistently held that sales commission fall under definition of 'input service'. By following the ratio of the above said decisions, we hold that denial of CENVAT Credit on sales commission is not sustainable in law....

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Service tax not applicable on permanent transfer of IP Rights

SKOL Breweries Ltd. (Now known as Anheuser Busch InBev India Ltd.) Vs C.C.E & C.S.T. (CESTAT Bangalore) - Assignment of trademark and the IPR were amounted to permanent transfer and no service tax was applicable on permanent transfer of IP Rights by Foster's to assessee. ...

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No Service Tax on Remuneration to Director in employment of the company

Bengal Beverages Pvt. Ltd. Vs CGST & Excise, Howrah (CESTAT Kolkata) - Bengal Beverages Pvt. Ltd. Vs CGST & Excise, Howrah (CESTAT Kolkata) In the instant case, the only dispute herein is for payment of remuneration in the nature and form of commission based on percentage of profit to whole time directors, which is a fact on record. Section 2(94) of Companies Act, ...

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Credit cannot be denied on services used for providing warranty services

Power Build Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad) - Power Build Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad) Warranty Service which implies that the value is already included in the sale price of the goods. Moreover, there is no requirement in the definition of Input Service that the value is to be included in the assessable value for the purpose ...

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NIDB data cannot be sole basis to reject transaction value without any cogent reasons

Commissioner Of Customs Vs Hanuman Prasad & Sons (CESTAT Delhi) - The issue under consideration is whether the invoice represent the true transaction value in the international market? This casual observation is not based on the factual position that emerges from the records of the case. Thus, for all the reasons above, the Commissioner (Appeals) was not justified...

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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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File Appeal on Legal Paper, Typed in Double space: CESTAT Delhi

Public Notice No. 04 of 2019 - (06/03/2019) - Every memorandum of appeal, cross-objections, reference applications, stay applications or any other Miscellaneous applications shall be typed neatly in double space on Legal size paper and the same shall be duly paged, indexed and tagged/punched firmly with each paper book in separate folder. Copie...

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Stay on Circular Mandating 10% Additional Pre- Deposit for Appeals before CESTAT

Circular No. F.No.01/05/Circular /CESTAT /2015 - (11/07/2017) - Hon'ble High Court of Delhi on 23.5.2017 has passed an interim order in W.P. No. 4551/2017 and accordingly, the demand of 10% additional mandatory deposit over and above the amount deposited before Commissioner (Appeals) is stayed till further orders. The circular dated 27.4.2017 issued by this offi...

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Recent Posts in "Cestat judgments"

CENVAT Credit eligible on Sales Commission

Federal Mogul TRP (India) Ltd Vs Commissioner of Central Tax (CESTAT Bangalore)

It has been consistently held that sales commission fall under definition of 'input service'. By following the ratio of the above said decisions, we hold that denial of CENVAT Credit on sales commission is not sustainable in law....

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Service tax not applicable on permanent transfer of IP Rights

SKOL Breweries Ltd. (Now known as Anheuser Busch InBev India Ltd.) Vs C.C.E & C.S.T. (CESTAT Bangalore)

Assignment of trademark and the IPR were amounted to permanent transfer and no service tax was applicable on permanent transfer of IP Rights by Foster's to assessee. ...

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No Service Tax on Remuneration to Director in employment of the company

Bengal Beverages Pvt. Ltd. Vs CGST & Excise, Howrah (CESTAT Kolkata)

Bengal Beverages Pvt. Ltd. Vs CGST & Excise, Howrah (CESTAT Kolkata) In the instant case, the only dispute herein is for payment of remuneration in the nature and form of commission based on percentage of profit to whole time directors, which is a fact on record. Section 2(94) of Companies Act, 2013, duly defines ‘whole-time [&helli...

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Credit cannot be denied on services used for providing warranty services

Power Build Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)

Power Build Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad) Warranty Service which implies that the value is already included in the sale price of the goods. Moreover, there is no requirement in the definition of Input Service that the value is to be included in the assessable value for the purpose of Central Excise […]...

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NIDB data cannot be sole basis to reject transaction value without any cogent reasons

Commissioner Of Customs Vs Hanuman Prasad & Sons (CESTAT Delhi)

The issue under consideration is whether the invoice represent the true transaction value in the international market? This casual observation is not based on the factual position that emerges from the records of the case. Thus, for all the reasons above, the Commissioner (Appeals) was not justified in setting aside the orders passed by t...

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No monetary consideration- No Service Tax : CESTAT

Golcha Properties Pvt. Ltd. (Golcha Cinema) Vs Principal Commissioner of Service Tax (CESTAT Delhi)

Golcha Properties Pvt. Ltd. (Golcha Cinema) Vs Principal Commissioner of Service Tax (CESTAT Delhi) The agreement with M/s. A.A. Films that was enclosed as the seventh relied upon document has only to be examined. A perusal of the agreement between the Appellant and the Distributor would also make it abundantly clear that it is the [&hell...

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Charter hire of work over Rigs cannot be classified as ‘repair or maintenance service’ for Service Tax

Dewanchand Ramsaran Industries Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)

Dewanchand Ramsaran Industries Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata) We find that the learned Commissioner, in page No. 7 & 8 of the impugned order, after having noted that aforesaid scope of work, has hurriedly concluded that the work is nothing but maintenance and repair of workover oil wells...

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Cenvat credit eligible on outward transportation from factory gate to customer’s place

Commr. of Central Excise Vs Anmol Biscuits Ltd. (CESTAT Kolkata)

Commr. of Central Excise Vs Anmol Biscuits Ltd. (CESTAT Kolkata) Hon’ble Supreme Court in the case of CCEx.,Belgaum Vs. Vasavadatta Cements Ltd. : 2018 (11) GSTL 3 (SC) held that that the assessee is legally eligible to avail credit on outward transportation availed from place of removal upto a certain point, whether it is a […]...

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Rule 6(3) of CCR, 2004 not applies to supply of dutiable good under SFIS Scheme

Sudhir Power Ltd. Unit-III Vs CCE & ST- Jammu and Kashmir (CESTAT Chandigarh)

Sudhir Power Ltd. Unit-III Vs CCE & ST- Jammu and Kashmir (CESTAT Chandigarh) It is a fact on record that the appellant is manufacturing DG sets and enclosures which are dutiable under Chapter 85 of CETA 1985. The appellant is also clearing goods to the buyers under SFIS Scheme duty free in terms of the […]...

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Certificate of CA or Bank sufficient to establish Linkage between FIRC & Export Invoice

Sentini Technologies Pvt Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad)

The issue under consideration is whether the export proceeds realised even before the invoices were issued are against exported services since FIRCs are also not show the invoice numbers?...

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No Service Tax on Bariatric Surgery as same is Life-Saving Procedure

Mohak Hi Tech Speciality Hospital Vs Commissioner Of Central Excise, Customs and Service Tax (CESTAT Delhi)

The issue under consideration is whether service tax can be imposed on bariatric surgery even if it is a life-saving procedure? Bariatric Surgery cannot be considered as a Cosmetic or Plastic Surgery, and hence the same is not a taxable service within the meaning of clause (105) (zzzzk) of Section 65 of the Finance Act, 1994....

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No Service Tax on Income from Screening of Movies for Annual Film Festival

Vinay Kumar Proprietor of M/s. Regal Theatre Vs Principal Commissioner of Service Tax (CESTAT Delhi)

The issue under consideration is whether service tax is applicable on income received from screening of movies for the annual film festival?...

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Department cannot force Assessee to Reverse Credit Merely for non-Intimation made under rule 6 of CCR

Rockey Marketing (Chennai) Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Chennai)

The issue under consideration is whether department cannot force upon the assessee to reverse credit under Rule 6(3)(i) merely for the reason that no intimation under Rule 6 of CCR?...

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Banks eligible to avail ITC on Insurances services availed for Rendering Output Services

South Indian Bank Vs C.C., C.E. & S.T-Calicut (CESTAT Bangalore)

The issue under consideration is whether the assessee banks are eligible for cenvat credit of service tax availed on insurance service received by the banks from the Deposit Insurance and Credit Guarantee Corporation?...

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IGST Exemption available on re-import of repaired parts or aircraft into India

Interglobe Aviation Limited Vs Commissioner of Customs (CESTAT Delhi)

Interglobe Aviation Limited Vs Commissioner of Customs (CESTAT Delhi) Conclusion: Assessee was entitled to exemption from payment of integrated tax under the Exemption Notification on re-import of repaired parts/aircraft into India because in the absence of mention of integrated tax and compensation cess in column (3) under serial no. 2 o...

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CESTAT set aside demand on Mobilization advance which was not consistent with law

Gammon India Ltd Vs CST (CESTAT Mumbai)

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 […]...

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Interest for Delayed Service Tax refund – From the date of application or date of order?

Scribetech India Healthcare Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore)

Scribetech India Healthcare Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore) The Bangalore CESTAT ordered for the interest for a delayed refund on the expiry of period of three months from the date of receipt of application, following the decission Supreme Court in the case of Ranbaxy Laboratories Ltd. Section 56 of the CGST [&h...

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Time limit not applicable for Service Tax refund to SEZ

Lanco solar Pvt. Limited Vs Commissioner, Central Tax, Central Excise, Customs (CESTAT Delhi)

Lanco solar Pvt. Limited Vs Commissioner, Central Tax, Central Excise, Customs (CESTAT Delhi) Delhi CESTAT  held that the ab initio exemption provided under the SEZ provisions, having overriding effect on the service tax provision. Under such position of law, a notification under service tax cannot restrict or provide a time limit for gr...

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Service Tax exemption to Electrical Contractor under mega exemption Notification?

Arvindra Electricals Vs Commissioner of Central Excise & ST (CESTAT Chandigarh)

Arvindra Electricals Vs Commissioner of Central Excise & ST (CESTAT Chandigarh) Whether Electrical Contractor is exempt from service Tax under mega exemption Notification No. 25/2012-ST issued dated 20.06.2012. Yes, In the case of M/s. Arvindra Electricals Vs Commissioner of Central Excise & ST, Chandigarh it has been decided that...

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Top 15 Case Laws related to GST for October 2020

1. Supply of goods and supply of service made form different registration of the same taxpayer is neither a works contract nor composite supply? Maharashtra Appellate Authority for Advance Ruling in the case of Vertiv Energy Pvt Ltd has ruled when the goods are supplied from one registration and the installation of such goods has [&hellip...

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Service Tax refund cannot be denied for claim of drawback

Mittal International Vs CCE (CESTAT Chandigarh)

Mittal International Vs CCE (CESTAT Chandigarh) Refund claim was denied on the ground that the said goods have been exported and drawback is allowed on the export of goods. The case of the Revenue is that as the appellants have claimed drawback on export of the goods, therefore, they are not entitled for refund claim […]...

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CESTAT allows ITC which was disallowed under wrong impression

Entertainment world Developers Private Ltd. Vs Commissioner, Customs, Central Excise and Service Tax (CESTAT Delhi)

The issue under consideration is whether the disallowance of input tax credit against service is justified in law? The said demand is also not tenable as the said demand was prima facie raised under the impression that the appellant is not entitled to cenvat credit....

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Service Tax not applicable to salary paid to employees under secondment agreement

Goldman Sachs Services Vs Commissioner of Central Tax (CESTAT Bangalore)

Goldman Sachs Services Vs Commissioner Of Central Tax (CESTAT Bangalore) Facts- Employees of overseas group companies have come on secondment to the assessee. The assessee has entered into separate employment contract with the seconded personnel and employer-employee relationship exists between the assessee and the seconded personnel. It ...

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No ST under RCM on deployment of Employees of Parent Company & Payment of Salaries to them

Komatsu India Pvt. Ltd. Vs. Commissioner of Service Tax (CESTAT Chennai)

The issue under consideration is whether the service tax under RCM will be levied on deputed employees working under control, direction and supervision of overseas companies?...

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Cenvat Credit Can’t be Denied for Export of Exempted goods Outside India

Eastern Chemofarb Limited (DTA Unit) Vs Commissioner of Central Excise (CESTAT Kolkata)

The issue under consideration is whether the lower authority is correct in stating that the appellant is not entitled to avail credit of duty paid on inputs used in the manufacture of exempted goods since they have cleared the said exempted goods for export outside India?...

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Trade discount not liable to service tax as commission

Laxmi Exports Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)

There is no contract of commission agent service with any of the commission agent, there is no person to whom payment of commission was made therefore, it is clear that no service provider i.e. foreign commission agent exists in the present case....

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Customs cannot deny benefit where licensing authority not taking any action – SFIS benefit available to golf carts

EIH Associated Hotels Ltd. Vs Commr. of Customs (E) (CESTAT Mumbai)

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) ...

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Declared import value cannot be rejected without passing speaking order

Commissioner of Customs Vs. Artex Textile Private Limited (CESTAT Delhi)

Commissioner of Customs Vs. Artex Textile Private Limited (CESTAT Delhi) we find that assessing officer have been making enhancement in a routine manner and the respondent who are regular importers are left with no choice but to sign on the dotted line for taking delivery of their goods to carry on their business, and also […]...

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Service tax on GTA under RCM dropped, stating revenue neutrality

Ashirwad Foundaries Pvt. Ltd. Vs. Commissioner of CGST & Central Excise (CESTAT Kolkata)

Ashirwad Foundaries Pvt. Ltd. Vs. Commissioner of CGST & Central Excise (CESTAT Kolkata) CESTAT dropped the demand of Service tax on GTA under RCM, stating revenue neutrality.  Hon’ble Supreme Court in the case of CCE, Pune Vs Coca-Cola India Pvt. Ltd., 2007 (213) ELT 490 (SC) and CCE, Vadodara Vs Narmada Chematur Pharmaceuticals L...

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Transaction Value to be accepted if there was reason to doubt truth or accuracy of such value

Aureole Atelier Pvt. Ltd. Vs. Commissioner of Customs (Preventive) (CESTAT Delhi)

Aureole Atelier Pvt. Ltd. Vs. Commissioner of Customs (Preventive) (CESTAT Delhi) Section 14 of the Customs Act provides that for the purpose of valuation the value of imported goods shall be the transaction value of such goods, i.e. to say, the price actually paid or payable for the goods when sold for export to India […]...

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Service Tax not payable when paid to vendor instead of paying to Govt. under RCM

Mahanadi Coalfields Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

Mahanadi Coalfields Limited Vs Commissioner of CGST & CX (CESTAT Kolkata) The only issue involved in this appeal is whether the appellant is liable to deposit service tax under Security Service under reverse charge when the entire service tax amount has been reimbursed to the service provider who has deposited the same with the Govt. ...

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Disputed CENVAT Credit paid during Service Tax Regime can be claimed as cash refund

Kaizen Organics Pvt. Ltd. Vs. Commissioner of Central Goods & Service Tax (CESTAT Delhi)

Kaizen Organics Pvt. Ltd. Vs. Commissioner of Central Goods & Service Tax (CESTAT Delhi) I find that the allegations in the show cause notice of taking irregular cenvat credit is based on a communication dated 30.02.2012 received from the Additional Commissioner, Customs & Central Excise, J & K, Jammu, stating that the several...

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Service Tax on Expat salary reimbursement on Deputation

India Yamaha Motors Pvt. Ltd. Vs. Commissioner of Customs (CESTAT Delhi)

India Yamaha Motors Pvt. Ltd. Vs. Commissioner of Customs (CESTAT Delhi) For the demand relating to the period from 1 April, 2012 to 1  July, 2012 i.e. pre negative list period: The definition of manpower recruitment and supply agency is relevant for the impugned adjudication. Section 65(68) of the Act defines manpower recruitment and su...

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Extended period cannot be invoked in case of revenue neutral situation

Star Alloys & Chemicals Pvt. Ltd. Vs. CCE & ST (CESTAT Delhi)

Star Alloys & Chemicals Pvt. Ltd. Vs. CCE & ST (CESTAT Delhi) CESTAT has held that in the case of GTA service, CENVAT credit is available, therefore extended period cannot be invoked. Learned Advocate submits that whatever service tax was payable by them on the said GTA services, the same was available as a credit […]...

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No Service Tax on deputation of employees from a group company in Japan to Appellant in India

Mikuni India Pvt. Limited Vs Commissioner of Central Goods and Service Tax, Customs & Central Excise (CESTAT Delhi)

Mikuni India Pvt. Limited Vs Commissioner of Central Goods and (CESTAT Delhi) It is not in dispute that the issue involved in this appeal is similar to the issues involved in the appeal that came up for decision before the Division Bench of the Tribunal in M/s India Yamaha Motor Private Limited. The Division Bench […]...

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CENVAT credit admissible for construction/setting up of landfill

Maharashtra Enviro Power Ltd. Vs. Commissioner of Central Excise (CESTAT Mumbai)

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

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Value declared in Bills of Entry cannot be rejected without following Rule 12ibid

Classic Marble Company Pvt. Ltd. Vs Commissioner of Customs (CESTAT Mumbai)

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...

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CESTAT Allowed Refund alongwith Interest against Service Tax Paid for Services Received in SEZ

Cummins Technologies India Pvt. Ltd. Vs. Commissioner (CESTAT Delhi)

The issue under consideration is regarding rejection of refund claimed by the appellant being service tax paid for the services received in the SEZ....

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Service Tax Refund rejection based on Principles of Unjust Enrichment justified

The Madras Club Vs. Commissioner of G.S.T. & Central Excise (CESTAT Chennai)

The issue under consideration is regarding rejection of claim for refund of the service tax under Section 11B....

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CESTAT explains Service Tax on Site Formation Services

M/s. Sem Construction Vs C.C.E. & S.T. (CESTAT Ahmedabad)

M/s. Sem Construction Vs C.C.E. & S.T. (CESTAT Ahmedabad) Brief facts of the case are that the appellant had been awarded a contract under agreement dated 01.04.2011 by M/s. Archelean Chemical Private Limited at Rann of Kutch for job of “metal spreading for supply un­course black Trap Rubble stone” and its spreading/dressing alon...

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Revenue cannot Reject Classification of Goods of Assessee without Cogent Evidences

Asian Granito India Limited Vs. C.C.-Mundra (CESTAT Ahmedabad)

The issue under consideration is whether the Calcite Sand (Calcite Powder) is classifiable under CT 2503 9030 as mineral product or required to be classified under CTH 2836 5000 as a chemical?...

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CBEC Letter cannot enlarge scope of exemption notifications

Sova Solar Ltd. Vs CCE & ST (CESTAT Kolkata)

Sova Solar Ltd. Vs CCE & ST (CESTAT Kolkata) It is pertinent to consider whether CBEC can enlarge or modify the scope of an exemption notification which is in the form of a subordinate legislation through a letter or circular. Taxing statutes have to be strictly construed and the power of taxation lies with the […]...

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ST refund of tax paid on advance for which service not rendered due to merger cannot be denied

Lancor Holdings Limited Vs The Commissioner of G.S.T. and Central Excise (CESTAT Chennai)

Lancor Holdings Limited Vs The Commissioner of G.S.T. and Central Excise (CESTAT Chennai) There is no dispute as to the eligibility or otherwise for refund except the claim being rejected as barred by limitation. There is also no dispute that both the service provider and the service recipient having merged into a single entity, there [&h...

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Cestat referred issue of ST reverses charge on salary of seconded employee’s to Larger Bench

M/s Canon India Pvt Ltd Vs Commissioner, Goods & Service Tax (CESTAT Chandigarh)

M/s Canon India Pvt Ltd Vs Commissioner, Goods & Service Tax (CESTAT Chandigarh) The issue involved in the present case is in respect of levy of service tax on the amounts paid as salary to expats under the taxable category of Manpower Supply Services. With effect from 01.07.2012, the law as introduced by the way […]...

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Cenvat credit when portion of output service not liable to service tax

Metlife India Insurance Company Limited Vs Commissioner of Central Excise (CESTAT Bangalore)

Metlife India Insurance Company Limited Vs Commissioner of Central Excise (CESTAT Bangalore) CESTAT Bengaluru has held that Cenvat credit of service tax paid under reverse charge mechanism for availing services of insurance agents was available in a case when a portion of the premium amount (consideration towards output service), in case ...

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Valuation – Advertisement & sales promotion expenses incurred by importer on own account, not includible

Indo Rubber and Plastic Works Vs Commissioner of Customs (CESTAT Delhi)

Indo Rubber and Plastic Works Vs Commissioner of Customs (CESTAT Delhi) CESTAT Delhi has held that in absence of any condition precedent, the expenditure by the importer-appellant on advertisement and sales promotion incurred on its own account and not for discharge for any obligation of the seller (foreign exporter) under the terms of th...

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Child parts used in manufacture of parts of motor vehicle seats are classifiable under Heading 9401

Shiroki Auto Components India Pvt. Ltd. Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)

Shiroki Auto Components India Pvt. Ltd. Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) CESTAT Ahmedabad has held that the child parts imported by the appellant are classifiable under Tariff Item 9401 90 00 as parts of vehicle seats as declared by the importer-assessee and not under Tariff Item 8708 99 00 as parts […]...

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Duty drawback cannot be denied for procedural irregularities

Bio Gen Extracts Pvt Ltd Vs Commissioner of Customs (CESTAT Bangalore)

Bio Gen Extracts Pvt Ltd Vs Commissioner of Customs (CESTAT Bangalore) We find that the appellant initially exported Phycocyanin and a part quantity of the same was rejected for quality reasons which was re-imported by him without payment of duty in terms of Notification No. 158/95-Cus dated 14.11.1995 on executing Bond with Bank Guarante...

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EC & SHEC balance as on 30.06.2017, which could not be transitioned to GST, is refunable: CESTAT

Bharat Heavy Electricals Ltd. Vs Commissioner CGST, Central Excise & Customs, (CESTAT Delhi)

Bharat Heavy Electricals Ltd. Vs Commissioner CGST, Central Excise & Customs, (CESTAT Delhi) There is no dispute that on 01/07/2017, the cesses credit validly stood in the accounts of the assessee and very much utilizable under the existing provisions. The appellants could not carry over the same under the GST regime. Thus the appella...

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Who is Service Recipient – Exporter’s Bank or Exporter himself

Service tax was first introduced in India in 1994 and was only levied on 3 services. Gradually, this net kept on widening and more and more services were added to the list of taxable services. In 2012, India moved from charging Service tax on specified services i.e. positive list regime to all services except for […]...

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Posted Under: Service Tax |

Customs duty can be demanded only by officer having jurisdiction on import

Samudra Dredgers (UK) Ltd. Vs Commissioner of Customs (CESTAT Bangalore)

The issue under consideration is whether the dredger is covered as a foreign flag vessel and liable for payment of custom duty?...

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No ST under RCM levied on Indian bank acting as a mediator between Exporter & Foreign Banker

State Bank of Bikaner & Jaipur Vs Commissioner of Central Excise & Service Tax (CESTAT Delhi)

whether service tax can be levied on reverse charge mechanism basis on an Indian bank acting as a mediator between an Indian exporter and the foreign banker representing foreign importer?...

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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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CESTAT explains exercise of Option under Cenvat Credit Rule 6(3)(i)

Tata Steel Ltd. Vs CCEx. & S.Tax (CESTAT Kolkata)

The issue under consideration is whether the appellant, Tata Steel, was entitled to avail option under Rule 6(3)(ii) of the Cenvat Credit Rules?...

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No Service Tax on Octroi Collection in discharge of Sovereign Privilege

Traffic Manager Vs Commissioner of Service Tax (CESTAT Mumbai)

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?...

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Actual Cost of Production as Assessable Value will be charged in Inter-Unit Transfer of Goods

Hindalco Industries Ltd. Vs Commissioner of Central Excise (Appeals) (CESTAT Kolkata)

The issue under consideration is whether assessee is justified in reducing the assessable value to the actual cost of production in the inter-unit transfer of goods?...

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Benefit of Basic Custom Duty exemption on import of ‘GoPro HERO5 Black’ Action Camera Allowed

Creative Peripherals & Distribution Ltd Vs Commissioner of Customs (CESTAT Mumbai)

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?...

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Tribunal Rules, 2020: Reinforcement of executive dominance

1. Introduction The present paper aims to analyse the Tribunal, Appellate Tribunal, and other Authorities (Qualifications, Experience, and other Conditions of Service of Members) Rules, 2020 which were passed by the Ministry of Finance. The analysis will be primarily done by looking at how the rules have responded to Supreme Court Decisio...

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Posted Under: Service Tax |

Composite Contract can be subject to service tax only under Work Contract Service after 01 June 2007

Kunnel Engineers and Contractors Pvt. Ltd. Vs C.C.,C.E.& S.T (CESTAT Bangalore)

The issue under consideration is whether the service would continue to be classified under CICS/CCS and changing the classification into WCS midway is permissible or not?...

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No ST on Reimbursement of expenses on behalf of service recipients

Awasthi Brothers Vs Principal Commissioner,Customs, Central Excise & Service Tax (CESTAT Delhi)

The issue under consideration is whether expenses received as reimbursement of expenses made on behalf of service recipients can form part of the assessable value and service tax will be applicable on it?...

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No Custom Penalty for goods cleared by officers after signing Bond

Bharat Tissues Pvt. Ltd. Vs C.C. (CESTAT Bangalore)

Penalty under Section 114A and other penal provisions cannot be invoked when the goods were permitted to be cleared by the officers. However, the Revenue will be free to recover duty along with interest in terms of the Notification....

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No Service Tax on Commission or Agency Fee remitted to entities for handling Vessels outside India

Bharat Petroleum Corporation Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

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? ...

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Cenvat Credit of ITC attributable to taxable output & use of Formula

Dell International Services India Pvt. Ltd. Vs C.C.E. & S.T. (CESTAT Bangalore)

The issue under consideration is whether ITC attributable to taxable output included in formula of determining ITC of exempted goods or services?...

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No Service Tax on advanced fire-fighting training & elementary first aid course

Cochin Shipyard Ltd. Vs CCEx. & S.Tax (CESTAT Bangalore)

The issue under consideration is whether service tax is applicable on the fee income earned from the students under the category of “Commercial Training or Coaching Services”?...

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No Service Tax on Loan Foreclosure charges collected by banks & NBFCs- CESTAT Larger Bench

Commissioner of Service Tax Vs Repco Home Finance Ltd. (CESTAT Chennai)

Foreclosure charges collected by the banks and non banking financial companies on premature termination of loans are not leviable to service tax under 'banking and other financial services' as defined under section 65 (12) of the Finance Act...

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CESTAT warns Commissioner (A) of penal action for not respecting its decision

Park Nonwovens Pvt. Ltd. Vs CCE (CESTAT Chandigarh)

Commissioner (A) has not respected the order of this Tribunal required to be penalized. Therefore, the ld. Commissioner (A) is directed to take care in future to avoid any penal action from this Tribunal....

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Benefit of SEZ unit can’t be denied merely because registered office is situated in DTA i.e. outside SEZ

M/s Adani Power Ltd. Vs Commissioner of Service Tax (CESTAT Ahmedabad)

whether the commissioner is correct in denying the benefit of SEZ unit on the basis that the registered office is situated in DTA i.e. outside the SEZ?...

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Excise Duty Recovery for Shortage of goods in Absence of Evidences not valid

N R Sponge Private Limited Vs Commissioner Customs (CESTAT Delhi)

whether the Central Excise Officers are correct in levying duty on account of discrepancies in the records of the appellant and shortages in the stock of raw-material as well as finished goods?...

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No Service Tax on construction of residential complex prior to 01.06.2010

Manjeera Constructions Ltd. Vs Commissioner of Central Excise, Customs & Service Tax (CESTAT Hyderabad)

The issue under consideration is whether service tax will be levied on promoters/builders/developers prior to 01.06.2010 in respect of the construction of the residential complex?...

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No service Tax on Down linking of Signals as same not falls under Definition of Broadcasting

Vedic Broadcasting Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Delhi)

whether the charges paid for a service provided by Intelsat (situated outside India) to the Appellant covered under the head broadcasting service and tax in the hands of the Appellant under the reverse charge mechanism?...

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No Service on Transfer of goods by hiring vessel

Universal Dredging and Reclamation Corporation Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Chennai)

The issue under consideration is whether the transfer of goods is by way of hiring the charter vessel is taxable under  Service Tax as declared service?...

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Know How’ is not IPR and not liable to service tax

Modi-Mundipharma Beauty Products Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Delhi)

Grant of exclusive right to assessee by Mauritius Revlon to use the 'know how' in any plant in accordance with the processes, specifications and recipes thereof in connection with the manufacture, marketing, sale  and distribution of Revlon  Products would not fall in the definition of "intellectual property right‟ so as to make it ta...

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No ST on brokerage from overseas reinsurance even if amount received in Rupees

Bharat Re-insurance Brokers Pvt. Ltd Vs Commissioner of Central Excise, Customs and Service Tax (CESTAT Hyderabad)

The issue under consideration is whether the contention if the appellant is correct that they are not liable to pay service tax on brokerage received from overseas reinsurance on the ground that the service falls under the category of export of service?...

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No service tax on construction services prior to introduction of Works Contract Service in June 2007

Lee Builders Vs Commissioner of Central Excise (CESTAT Bangalore)

No service tax can be demanded on construction services prior to introduction of „Works Contract Service” in June 2007 wherein there is a supply of goods and service....

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Service by NSDL to depository participants liable to Service Tax

National Securities Depository Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

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;...

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No service tax on KIADB for discharging statutory function

Karnataka Industrial Areas Development Board Vs Commissioner of Central Tax (CESTAT Bangalore)

Assessee was not liable to pay the service tax at all as it was a statutory body discharging the statutory function as per the statute Karnataka Industrial Areas Development (KIAD) Act, 1966 and hence was not liable to pay service tax....

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CENVAT credit of service tax paid for insurance service received by banks from DICGC was available

South Indian Bank Vs Commissioner of Customs, Central Excise and Service Tax (CESTAT Bangalore)

Insurance service provided by Deposit Insurance Corporation to banks was an input service and CENVAT credit of service tax paid for this service received by the banks from the Deposit Insurance Corporation could be availed by the banks for rendering output services....

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In absence of ‘intent to conceal’ cannot be construed as smuggled: CESTAT

Ahamed Gani Natchiar Vs Commissioner of Customs (CESTAT Chennai)

CESTAT directs Customs Authorities to return confiscated gold to Foreign National- lack of evidence and flimsy investigation by the authorities. Held that in the absence of 'intent to conceal' cannot be construed as smuggled....

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Higher discount justified if Goods imports in Bulk & maintain inventory by incurring Additional Cost

Lutron GL Sales & Services Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)

Lutron GL Sales & Services Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi) The issue under consideration is whether the percentage of enhancement to the transaction value ordered by the Deputy Commissioner of Customs is justified in law? In the present case, the appellant M/s Lutron GL Sales & Services Pvt. Limited imports lig...

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Customs Valuation Rules- Invoice price cannot be rejected without cogent reasons

Guru Rajendra Metalloys India Pvt Ltd Vs C.C. (CESTAT Ahmedabad)

CESTAT are of the clear view that merely based on DGOV circular also, value cannot be enhanced which is without authority of law. It is clearly held that DGOV circular cannot override the provisions of Valuation Rules. ...

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DGOV guidelines not overrules Customs Valuation Rules

Sunland Alloys Vs C.C. (CESTAT Ahmedabad)

Sunland Alloys Vs C.C. (CESTAT Ahmedabad) The issue under consideration is whether the DGOV guidelines are over and above Customs Valuation Rules? In the present case, the appellant imported Aluminium Scrap under various Bill of Entries and the price declared in the Bill of Entry is as per the invoice of the foreign supplier. The [&hellip...

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Refund can’t be rejected merely because registration number not mentioned in invoice

Adani Enterprises Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) ST No. 22 of 2010

The issue under consideration is whether it is correct to reject the refund on the basis that the registration number of appellant not mention in invoice?...

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Can CESTAT condone delay in filing Appeal before Commissioner (Appeals) beyond time permitted under statute

Can CESTAT condone delay for filing of Appeal before Commissioner (Appeals) beyond permissible time limit prescribed under the statute? There are plethoras of cases where appellant was failed to file an appeal before Commissioner (Appeals) within the statutory time limit prescribed in the Act due to various reasons. These reasons can be d...

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Posted Under: Service Tax |

Cenvat Credit cannot be denied for Invoices prior to ISD registration

Mafatlal Industries Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)

Mafatlal Industries Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) Demand of Rs. 39,60,634/- was confirmed on the ground that same was wrongly availed on ISD invoices issued by the appellant’s Ahmedabad and Mumbai branch for services availed prior to the date of ISD registration was granted for the said unit. ...

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Electricity bill paid on behalf of client is not ‘Business Auxiliary Service’

Ninan Jacob Associates Vs Commissioner Of Central Tax & Central Excise (CESTAT Bangalore)

The issue under consideration is regarding classification of services, whether electricity bill paid on behalf of client can be classified as ‘Business Auxiliary Service’?...

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No Service Tax if no monetary consideration charged for Services

Moti Talkies Vs Commissioner of Service Tax (CESTAT Delhi)

Whether department is correct in charging service tax on various services provided to film distributors by assessee  without charging any consideration....

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CESTAT on Refund of CVD & SAD – Paid to regularize import under Advance Authorization

Servo Packaging Ltd. Vs. Commissioner of GST & CE, Puducherry (CESTAT Chennai)

In this case, the Hon’ble Tribunal decided in favour of the Appellant with respect to availability of the Cenvat Credit. Once it is admitted fact that the Appellant was eligible to avail Cenvat Credit of the duties i.e., CVD and SAD, the Appellant is eligible to claim refund of the said Cenvat Credit in terms of Section 142(6) of the CG...

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CESTAT adopts new appellate procedure for online filing & hearing

We are all aware that the entire world is reeling under severe pandemic, COVID 2019 or Corona virus and India too has been badly affected causing social disruption, economic shut down and health concerns. The economy is at a virtual standstill and entire nation is under lockdown since 25th March, 2020 resulting in shutdown of […]...

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Posted Under: Service Tax |

No penalty if tax alongwith interest paid before issuance of SCN

YCH Logistics (India) Pvt. Ltd Vs C.C.E & C.S.T (CESTAT Bangalore)

YCH Logistics (India) Pvt. Ltd Vs C.C.E & C.S.T (CESTAT Bangalore) The services imported by the assessee are taxable services and are chargeable to Service Tax but they had not paid the Service Tax applicable on the same. The assessee were liable to pay the Service Tax on import of such services as a recipient […]...

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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 number and e-mail address of both the Appell...

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Classification under Central Excise Tariff needs to be made after perusing basic technical specifications of vehicles

Man Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi)

Man Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi) After perusing the catalogue of the vehicle, it is fairly obvious that such vehicles manufactured by the appellant are meant to carry loads and capable of off-loading but the same are not machines exclusively meant for off-road use. We have also perused the clarification obtained by [&helli...

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Dross and Skimming were nonferrous metal; Excise duty not payable

C.C.E. & S.T. Vs Hindalco Industries Limited (CESTAT Ahmedabad)

C.C.E. & S.T. Vs Hindalco Industries Limited (CESTAT Ahmedabad) Dross and Skimming were nonferrous metal for any such by-product or waste which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input or input service in terms [&h...

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Date of filing of bill of entry is not date of import

Radhe Exim Pvt. Ltd. Vs C.C. (CESTAT Ahmedabad)

Radhe Exim Pvt. Ltd. Vs C.C. (CESTAT Ahmedabad) From the plain reading of the definition of import it is clear that when the goods enter into territorial water of India that is the stage of completion of import into India and not the date of filling of Bill of Entry, therefore, if the appellant possess […]...

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Discount given for non-provision of certain service to foreign buyer not liable under BAS

MAN Trucks India Pvt. Ltd. Vs Commissioner, Central Excise, Customs & Service Tax (CESTAT Delhi)

MAN Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi) In a case where the assessee had exported goods to sister concern who in turn had sold them to buyers there, with the foreign importer being responsible for providing after sales services, CESTAT Delhi has held that the discount given in consideration for non-provision of warranty […...

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Cenvat Credit not reversible in absence of Physical removal of capital goods

Vodafone Mobile Services Limited Vs CCE&ST (CESTAT Chandigarh)

Cenvat held that appellant is not required to reverse Cenvat credit as the capital goods have not been physically removed from the premises where they were initially installed....

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Extended period of limitation could not be invoked by Department if no suppression & misrepresentation of facts

Kent Chemicals Private Ltd Vs Commissioner (CESTAT Delhi)

Kent Chemicals Private Ltd Vs Commissioner (CESTAT Delhi) The proven discharge of liability by the service provider, the same is opined to be a sufficient cause for the appellant to have a bonafide impression of him to no more be liable to pay the service tax even under reverse charge mechanism. The allegation as that […]...

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Goods Manufactured for use by other Manufacturers cannot be subjected to Excise U/s. 4A

T.M. Tyres Limited Vs Commissioner of Central Excise (CESTAT Hyderabad)

T.M. Tyres Limited Vs Commissioner of Central Excise (CESTAT Hyderabad) It is an admitted fact on record that the appellant is engaged in the manufacture of Butyl rubber inner tubes and such product by itself is separately identifiable and is a distinct Marketable product. It cannot be said that the product manufactured by the appellant [...

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Demand for Cost Recovery Charges was non sustainable

Goodearth Maritime Limited Vs Commissioner of Customs (CESTAT Ahmedabad)

Since no services were being specially provided by the customs officials to the custodians at a customs port or customs airport, to enable them to collect any fee, from such a custodian thus, High Court not only set-aside the demand of Cost Recovery charges but even held that Regulation 5(2) of Regulation 2009 was illegal....

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Transportation of iron ore from mines site to appellant’s crusher plant not falls under GTA service

East India Minerals Limited Vs Commissioner of Central Excise (CESTAT Kolkata)

Activity of transportation of iron ore lumps from the mines site to the appellant’s crusher plant does not constitute GTA service in terms of Sec.65(105)(zzp) read with Sec.65(50b) of the Finance Act, 1994....

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