CESTAT Cases Monthly Round Up: May 2024

Update: 2024-06-01 08:35 GMT
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Service Tax Demand Not Sustainable On Imparting Education With Intensive Preparation For Competitive Exams: CESTATCase Title: BRK Educational Society Versus Commissioner of Central Excise & Service Tax, GunturThe Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant-Society is not liable to pay service tax on their activity of...

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Service Tax Demand Not Sustainable On Imparting Education With Intensive Preparation For Competitive Exams: CESTAT

Case Title: BRK Educational Society Versus Commissioner of Central Excise & Service Tax, Guntur

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant-Society is not liable to pay service tax on their activity of imparting education as per the Intermediate curriculum, with intensive preparation for competitive exams.

No Service Tax Payable On Consideration Received For Operating And Arranging Outbound Tours: CESTAT

Case Title: M/s. Weldon Tours & Travels Pvt. Ltd. Versus Commissioner of Service Tax - Delhi

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on a tour operator's services provided beyond the territorial limits of India.

Cenvat Credit Rules, 2004 And Central Excise Act, 1944 Lack Provision To Allow Cash Refund Of Cess Lying In Cenvat Credit Balance: CESTAT

Case Title: M/s. NMDC Limited Versus Commissioner of C.G.ST.

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Cenvat Credit Rules, 2004 and Central Excise Act, 1944 lacks provision to allow cash refund of cesses lying in cenvat credit balance.

Services Rendered By Microsoft India To Overseas Entity Qualify To Be Exports, No Service Tax Payable: CESTAT

Case Title: M/s Microsoft Corporation (India) Pvt. Ltd. Versus The Commissioner of Service Tax, Delhi

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services rendered by Microsoft India to overseas entities qualify to be 'exports'.

Agreement For Supply Of Water Is Not Covered Under Right To Use Natural Resources; CESTAT Quashes Rs. 10 Crores Service Tax Demand

Case Title: Sasan Power Limited Versus Commissioner, Central Excise & Central Goods and Services Tax

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the agreement executed between the appellant and the government is for the supply of water, for which charges are paid by the appellant on the basis of the volume of water drawn, and it is not a case of the assignment of the right to use natural resources by the government.

No Service Tax Payable By National Co-Operative Consumers' Federation Of India For Selling Coal To End Consumers: CESTAT

Case Title: National Co-Operative Consumers' Federation Of India Ltd Versus Commissioner Of Central Excise Delhi Iii Commissionerate, Udyog

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that whatever is charged by the coal companies for coal, the appellant, the National Co-Operative Consumers' Federation of India, is adding 5% margin money, collecting the sale price from the consumers, and paying the sales tax on the entire amount received from the end consumers; therefore, the revenue cannot charge any service tax.

Advertising And Marketing Expenses For Sale Of Post-Import Goods Can't Be Included In Value Of Goods: CESTAT

Case Title: Reliance Brands Luxury Fashion Private Ltd. Versus The Principal Commissioner of Customs

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that expenses related to advertising and marketing are expenses in respect of activities carried out in India for sale of the goods in India which is post-import and, therefore, expenses cannot be part of the value of the imported good.

CISF Reputed Government Of India Undertaking Can't Intend To Evade Service Tax Payment: CESTAT

Case Title: Central Industrial Security Force Versus Commissioner of Central Tax Visakhapatnam

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand, held that rent-free accommodation provided to CISF personnel cannot be taken as additional consideration.

No Service Tax Payable On Freight Margin Recovered From Customer In Case Of Outbound Shipment: CESTAT

Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that no service tax is payable on freight margin recovered from customers in cases of outbound shipment.

No Service Tax Payable On Freight Margin Recovered From Customer In Case Of Outbound Shipment: CESTAT

Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that no service tax is payable on freight margin recovered from customers in cases of outbound shipment.

Export Obligation Under Advance Authorization Scheme Is Complied, All Duties Are Exempted: CESTAT

Case Title: M/s Jewel Utensils Industries Versus C.C. - Mundra

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the goods were cleared under the advance authorization scheme, according to which all the duties are exempted by way of debiting in the advance licence scheme.

Bus Meant For Carrying Passengers, Can't Be Called Means Of Transport Of Goods, Service Tax Payable: CESTAT

Case Title: M/s. Rajasthan State Road Transport Corporation Versus Commissioner of Central Excise and Service Tax Commissionerate

The Delhi Bench of Customs, Excise and Service Tax Appellate (CESTAT) has held that service tax is payable on buses meant for carrying passengers and cannot be called means of transport of goods.

Broomsticks Made Up Of Plastic Not Using Vegetable Material Taxable w.e.f 22.09.2017: CESTAT

Case Title: Rajat International Versus Commissioner Of Customs-Mundra Customs

The Ahembadad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that broomsticks made up of plastic not using vegetable material are taxable with effect from September 22, 2017.

Accumulated Cenvat Credit Refund Allowable On Export Of Goods Even If Exempted From Central Excise Duty: CESTAT

Case Title: M/s Kancor Ingredients Ltd. Versus Commissioner, CGST, Noida

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that refund of accumulated Cenvat Credit is allowable on export of goods even if they are exempted from payment of Central Excise Duty.

Mere Challenging Tribunal's/High Court's Order Before Supreme Court Not Valid Ground To Ignore Tribunal's Order, Unless Stayed: CESTAT

Case Title: National Engineering Industries Limited Versus Commissioner of CGST and Central Excise

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere filing of an appeal to challenge the order of the Tribunal or the High Court before the Apex Court is not really a valid ground to ignore or disregard the orders of the Tribunal, unless and until the same are stayed, suspended, or finally set aside.

Customs Duty Amount Involved Is Less Than Threshold Limit: CESTAT Dismissed Dept.'s Appeal

Case Title: Commissioner of Customs ICD Patparganj & Other ICDs Versus VSM Impex Pvt. Ltd.

The Chandigarh Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has dismissed the dept.'s appeal, in which the customs duty amount involved is less than Rs. 50 lakhs.

Set Top Boxes Satisfy Definition Of 'Inputs', Dish TV Entitled To 100% Credit: CESTAT

Case Title: M/s Dish TV India Ltd. Versus Commissioner of CGST, Noida

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that Dish TV is entitled to 100% credit as the set top boxes satisfy the definition of 'Inputs'.

Dept. Can't Re-Determine MRP Of Laptops Imported By Acer India Supplied With Laptop Bag: CESTAT

Case Title: M/s. Acer India (Pvt.) Ltd. Versus Commissioner of Customs (Audit)

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department cannot re-determine the MRP of laptops imported by Acer India.

Clandestine Removal Cannot Be Substantiated Without Any Corroborative Evidence: CESTAT

Case Title: M/s. Mittal Iron Foundry Private Limited Versus Commissioner of Central Excise

The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that clandestine removal cannot be substantiated without any corroborative evidence.

Place Of Outbound Shipment Outside India, No Service Tax On Freight Margin Recovered From Customer: CESTAT

Case Title: Vishal Tansukhbhai Gohel Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the place of provision of service for outbound shipment shall be outside India. Hence, there will be no service tax on the freight margin recovered by the applicant from the customer.

Excise-Duty Not Payable On Trade Discount Offered To Bulk Buyer Of CNG: CESTAT

Case Title: Mahanagar Gas Ltd. Versus Commissioner of Central Excise, Mumbai-II

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on trade discounts offered to bulk buyers of compressed natural gas (CNG).

No Addition Is Permitted U/s 68 Without Linking Alleged Entries Of Cash With That Of Material Seized During Course Of Search: Mumbai ITAT

Case Title: Parag Motilal Savla verses ITO

On finding that the AO has failed to prove that the seized documents were related to the assessee, the Mumbai ITAT held that the addition made by the AO u/s 68 of the Income Tax Act, without bringing any concrete evidence on record incriminating the assessee is not sustainable, and deserves to be deleted.

Claim As Residential House, No Basic Amenities For Habitation Found; Delhi ITAT Upholds Disallowance Of Deduction U/s 54

Case Title: DCIT verses Sandeep Hooda

On finding that all the basic amenities desired for a living, were not available in the subjected property rendering it to be non-habitable, the New Delhi ITAT held that the assessee had not constructed the residential house, and hence, deduction u/s 54 of the Income Tax Act, was rightly denied by the AO.

Approving Authority Has Acted As Mere Rubber Stamp While Granting Approval U/s 153D: Delhi ITAT Quashes Assessment Passed Without Application Of Mind

Case Title: MDLR Airline (P) Ltd. verses DCIT

On finding that the approval granted u/s 153D is not in accordance with the provisions of the Income Tax Act, the New Delhi ITAT held the approval granted u/s 153D is invalid and set aside the order passed by the First Appellate Authority as he acted as a mere rubber stamp.

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